Costa Rica to Assist US with Apprehension of Online Gambling Operators?
With the noteworthy arrest of BetonSports.com founder, Gary Kaplan, Wednesday evening came various statements from US authorities.
One in particular has the online gambling empire of Costa Rica on edge Friday.
Roland Corvington, Special Agent in Charge, FBI St. Louis Office, said in a statement Friday. "The U.S. State Department, specifically in Costa Rica, has provided and will continue to provide, vital assistance in relation to all aspects of this investigation including the apprehension and deportation of fugitives such as Gary Kaplan."
According to those close to the Antiguan government, there has been a huge surge in applications for online gambling licenses there over the past three months. This follows Bodog.com's announcement that it is in the process of relocating much of its gaming related business to the tiny Caribbean nation.
On Friday, Antigua won a landmark World Trade Organization case against the United States. The WTO appeal panel judges that American government is discriminatory when it comes to online gambling.
Antigua is one of the world's largest and most respected online gambling jurisdictions. It is also one of the first with licenses handed out beginning in 1995. The first online betting firms (BetWWTS.com, Carib, Sports International, English Sports Betting) began setting up shop there in the early 1990's. BetWWTS.com and Carib would later pave the way towards regulation in Antigua with their stellar reputations.
Kaplan's arrest came on what is now believed to be the darkest day in bookmaker history - Wednesday March 28. His arrest followed close to 70 others stateside, mostly agents and credit bookmakers with ties to a nondescript call center in Costa Rica. On Tuesday night, Gambling911.com had warned the online gambling community of the doom that loomed for Wednesday.
No Celebration for BetonSports Customers
The capture of BetonSports' founder Gary Kaplan will mean little to the hundreds of customers and employees still owed money by the company. Kaplan had little say in the day-to-day operations during its final year and expressed regret for turning the business over to British "suits".
"Gary would never have shut down BetonSports!" exclaimed one close associate.
Kaplan, who was extremely hands on with his business, is widely credited for opening up the industry through gorilla marketing tactics that included full page advertisements in mainstream media publications like Maxim, massive radio spots and billboards leading into major metropolises. His claim to fame to this day remains having a government agency (New York City's MTA) accept well over a million dollars to place BetonSports ads on yellow taxis and buses.
Kaplan's younger brother and older sister were released on bail late last year. BetonSports CEO David Carruthers remains under house arrest outside St. Louis where he must wear an ankle bracelet 24 hours a day. Carruthers - who is British - has been deemed a "flight risk" and Mr. Kaplan likely will be labeled the same once he returns to the continental US. Kaplan was being held briefly in Puerto Rico.
Sources close to Gambling911.com believe he will be flown to St. Louis via Miami on an American Airlines flight shortly.
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Christopher Costigan, Gambling911.com
Originally published March 30, 2007 5:26 pm ET
