Internet gambling and the law

This blog pertains to Internet gambling and the law. It is here that you will find all the latest legal issues related to online gambling including any new pending legislation.

July 31, 2006

Lawyers for BetonSports fail to show up for hearing

Lawyers representing online gambling firm BetonSports were a "no show" Monday for a hearing that stemmed from an indictment handed down exactly two weeks ago.

Federal prosecutors said BetonSports had been served with the appropriate paperwork, including papers given to former BetOnSports CEO David Carruthers upon his arrest in Texas. Read more here...

July 30, 2006

BetonSports links to mafia family not all what they seem

Dominic Rushe, reporting for the Times of London, has connected the dots and landed BetonSports smack in the middle of the Bonanno crime family.

BetonSports shut down July 18 after several indictments were lodged against it, the company's founder Gary Kaplan, CEO David Carruthers and several others including Tim Brown of BetMill.com (an arm of BetonSports), whose position was equivalent to that of a janitor. Read more...

July 30, 2006

Vice President of Costa Rica: Gary Kaplan would be extradited to US

Though he hasn't been caught yet, Sylvia Alvarado Marenco of Costa Rica newspaper Al Dia reports that BetonSports.com founder, Gary Kaplan, can be extradited back to the US by the Costa Rican government.

A federal grand jury in the Eastern District of Missouri returned a 22-count indictment charging 11 individuals and four corporations on various charges of racketeering, conspiracy and fraud. Kaplan, the founder of BetonSports.com, was named in the indictment along with the company itself and the CEO, David Carruthers. Some of the marketing people were arrested in the States.

July 28, 2006

Gary Kaplan likely to be extradited if found

A reporter for the Costa Rica newspaper Al Dia tells Gambling911.com it simply is not true that the Costa Rican authorities would not extradite BetonSports.com founder Gary Kaplan if found.

Gary Kaplan along with 10 others from BetonSports.com, including its CEO David Carruthers, were indicted early last week for various felonies including racketeering. Carruthers, a British citizen, is being held without bail in Dallas after being detained changing flights at that city's airport.

July 27, 2006

Internet gambling bill seen delayed in Senate
WASHINGTON (Reuters) - A bill to outlaw most forms of Internet gambling appears unlikely to win U.S. Senate passage before senators begin a month-long recess on August 4, two Republican leadership aides said on Tuesday.

They said backers of the legislation were trying to build support for it and resolve differences as the Senate focuses on other legislative matters and gets ready for a summer break.

July 26, 2006

David Carruthers may put up good fight

Call him a "puppet", a "figure head" for the "old regime" of BetonSports.com, one thing we can be almost certain of in the coming weeks and months ahead is that David Carruthers is not likely to roll over and play dead after last week's indictments.

A federal grand jury in the Eastern District of Missouri returned a 22-count indictment charging 11 individuals - David Carruthers included - and four corporations on various charges of racketeering, conspiracy and fraud. Carruthers served as CEO of BetonSports and helped take the company public in 2004. Read more here...

July 25, 2006

Will Amnesty International take up cause of David Carruthers?

Amnesty International launches global campaign against internet with David Carruthers and BetonSports rumored to be high on list of concerns

Shares in online gaming company BetOnSports were suspended last Tuesday after its chief executive was detained in the United States and the FBI ordered four telephone companies to cut off its operations.

BetOnSports said it had been unable to contact Chief Executive David Carruthers, who is being held in Fort Worth, Texas, but had seen a U.S. indictment "alleging various criminal acts against multiple defendants."
Read More...

July 23, 2006

BetonSports: The world is yours

David Carruthers improbable rise to the top of an online gambling firm with roots in Brooklyn have made the world sit back and take notice, but more so because of what could be the climatic ending.

Carruthers along with 10 of his peers from BetonSports.com, including the firm's colorful founder, Gary Kaplan, were indicted last Monday on various felony charges stretching the gamut from the Wire Act violation, Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy, interstate transportation of gambling paraphernalia, interference with the administration of Internal Revenue laws and tax evasion.

July 17, 2006

eBay stands behind online gambling ban as its PayPal arm gets back into industry

eBay, for whatever the reason, has made itself a staunch ally of those looking to ban online gambling, this while its subsidiary, PayPal, embraced online gambling in the European nations as recently as February - though there is no sign of PayPal deposit methods featured on the BetFair site currently.

In other words, just a few months ago it was okay to bet over the internet, just as long as United States citizens were not exposed to its evils.

In a press release issued back in February, PayPal's Chief Executive, Geoff Iddison, announced that “PayPal may be best known as the preferred payment method for eBay customers. This is another example of the PayPal system being used by merchants to develop their online business.”

July 14, 2006

Online gambling: Brits not phased by attempts to ban it

With the vast majority of publicly listed online gambling companies trading on the London Stock Exchange, few Brits seem to care about recent attempts to make the activity illegal in the United States.

In fact, the British internet gambling firms witnessed share increases immediately following Tuesday's announcement of a lopsided passage in the House. This could of course have something to do with extended news of that same day emphasizing the Senate has made a ban on internet gambling the lowest of priorities.

July 13, 2006

Online gambling shares continue to rise despite bill to ban activity passing House

The passage of a bill on the House floor by a 317 to 93 vote banning online gambling has failed to hurt gambling company shares. In fact, it seems to have done quite the opposite.

Both Sportingbet and PartyGaming's shares rose after analysts said the latest attempt to ban internet casinos would fail despite its overwhelming support by the House.

The Internet Gambling Prohibition and Enforcement Act was co-sponsored by Republican congressman Bob Goodlatte, who has called online gaming a "scourge on our society". It was passed by 317 votes to 93.

July 12, 2006

US outlaws online gambling

Government chooses prohibition over regulation, leaving billions in tax revenue on the table

C. Medford, Red Herring
July 12, 2006

The United States House of Representatives passed up a taxable $6-billion pot by choking off the flow of money to online gambling sites, choosing to deal what it believes is a death blow to online gambling in the U.S.

By a vote of 317 to 93, the House, after a number of unsuccessful attempts in the past, passed legislation Tuesday that updates the Wire Act, a 1961 statute that made it a felony to use wire communications facilities to transmit bets. The bill now moves to the Senate.

The Internet Gambling Prohibition and Enforcement Act makes the Internet the latest addition to the list of “wire communications facilities” specified in the Wire Act.

July 12, 2006

Washington State residents urged not to attend World Series of Poker

Washington might not yet be deemed a police state yet but it might as well be. Residents could expect to have armed forces invade their living rooms in the not-so-distant future thanks to strict new enforcement that has made online gambling a Class C felony.

Governor Christine Gregoire's administration has made it clear that violators include not online poker players but web publishers and even local newspapers, one of which features a column from poker pro Daniel Negreanu.

Director of the state's gambling commission, Rick Day, recently warned the Seattle Times.

"My suggestion to you is to remove from your paper any advice about online gambling and any links to illegal sites," Day said.

In response, a number of poker publications have cancelled subscriptions to Washington State residents.

Gambling911.com has recommended that Washington State residents not attend this year's World Series of Poker. Most of the exhibitors will be online poker operators.

Progressive Democrats of America (PDA) "Freedom of Speech '06 Tour" should protest Christine Gregoire

There is no "Freedom of Speech" in the state of Washington where online gambling has become a Felony equivalent to that of drug dealing and publication of online gambling material could serve same punishment

Legendary rock and roll supergroup Crosby, Stills, Nash & Young’s North American “Freedom Of Speech ’06 Tour” launched on July 6, and along with delivering great music at major shows running through mid-September, the tour provides a vital forum to educate concert attendees about critical social, political and environmental issues.

Progressive Democrats of America (PDA) is proud to be among the groups participating in the Free Speech Zone table area that will be prominently featured at every CSNY tour date.

Freedom of Speech and the Democratic party don't always mix though. Such is the case in Washington State where the PDA may wish to take up its cause and in doing so preclude that state's governor from participating in any PDA movements.

Free speech is being stymied in the state of Washington where pro-abortion Democratic governor Christine Gregoire has now begun going after online gambling publications.

Online gambling prohibition: How powerful is the Poker Players Alliance?

Boasting a membership of approximately 30,000, The Poker Players Alliance represents online gambling's best hope of support against online gambling opponents in light of a bill banning the activity which passed the House floor Tuesday.

The Christian Coalition will also have its say in regard to the various exemptions a la horse racing and lotteries, having saved the day for internet gambling during previous years. The Christian Coalition refuses to support any bill to ban online gambling that includes exemptions, making this group a rather odd "friend" to the internet gaming industry.

As The Poker Players Alliance continues to grow, it too should become a major force within political circles, though there are questions concerning whether the non-for-profit organization at this time has enough clout to overcome recent attempts at deriding online gambling.

US legislative moves that could make it illegal for American citizens to play online poker will deprive the government of over $3bn in federal and state revenues, according to The Alliance.

Online gambling is bad and must be banned

Today we see yet another attempt to stymie online gambling by the usual suspects: Virginia Rep. Bob Goodlatte, Arizona Republican Sen. Jon Kyl and Iowa Republican Bob Goodlatte.

The bill aimed to ban most forms of Internet gambling, which generates some $12 billion annually worldwide. It is part of the Republican party's emphasis on moral values as congressional elections approach this fall.

The bill, which is now in its seventh reincarnation after six previous failed attempts to get it through Congress, has taken on an entirely new meaning this year. Mainstream media is paying attention with CNN Headline News among those outlets poised to feature industry representatives discussing the bill Tuesday evening. The online gambling sector also enjoys tremendous support this go around from a new - and potentially powerful lobbying group - the 30,000-member Poker Players Alliance.

July 11, 2006

Online gambling ban passes House but still long way to go before outright ban

The House passed legislation Tuesday that would prevent gamblers from using credit cards to bet online and could block access to gambling Web sites.

The legislation would clarify and update current law to spell out that most gambling is illegal online. But there would be exceptions - for state-run lotteries and horse racing - and passage isn't a safe bet in the Senate, where Republican leaders have not considered the measure a high priority.

The House voted 317-93 for the bill, which would allow authorities to work with Internet providers to block access to gambling Web sites.

Critics argued that regulating the $12 billion industry would be better than outlawing it. Said Rep. Barney Frank, D-Mass., "Prohibition didn't work for alcohol. It won't work for gambling."

The American Gaming Association, the industry's largest lobby, has opposed online gambling in the past but recently backed a study of the feasibility of regulating it.

July 11, 2006

Congress Hotly Debates Online Gambling

While temperatures flare up outside, tensions heat up inside Congress over an Internet gambling ban.

The legislation would clarify existing law by declaring Internet gambling illegal. It would cut off payments to betting Web sites and would allow authorities to work with Internet providers to block access to gambling Web sites.

Although most banking institutions have already restricted transactions within the United States, it is questionable whether the brunt of policing should be placed upon Internet providers.

The House is scheduled to vote later today on the bill, sponsored by Reps. Bob Goodlatte, R-Va., and Jim Leach, R-Iowa. Some of the debate focused on whether the bill would truly amount to a ban.

Read more on "Congress hotly debates online gambling" here

July 10, 2006

PROHIBITION 2006- The GOP Assault on Online Gaming

Why Ronald Reagan Must be Rolling Over in His Grave at the Antics of our Republican Congress!

By Wayne Allyn Root, author of “Millionaire Republican” and “The King of Vegas’ Guide to Gambling”

My name is Wayne Allyn Root. As America’s gambling guru, the media has dubbed me “The King of Vegas,” and “The Face of Las Vegas Gaming.” I am the Creator, Executive Producer and star of two popular gambling television shows- “King of Vegas” on Spike TV and “Wayne Allyn Root’s WinningEDGE.” I am the creator of the web site www.WinningEDGE.com. I am the author of numerous books on gambling, including “Root on Risk,” “The Zen of Gambling,” and my new book (released on August 3^rd) “The King of Vegas’ Guide to Gambling- How to Win Big at Poker, Casino Gambling & Life.”

But I am best known not as a professional gambler, but as a CEO, entrepreneur, business leader and political activist. I am Chairman and CEO of GWIN, Inc., America’s only publicly-traded sports handicapping firm. I am also a lifelong Republican supporter, voter, contributor, and future GOP candidate.

July 5, 2006

Lobbyists fight for right of internet gambling to exist

Lobbyists from all sides of the equation have been flocking to Washington in an effort to debate the pros and cons of online gambling. For the industry itself, a "poker players alliance" has raised the ante through its own lobbying efforts.

The New York Times

"...The odds of a bill's becoming law this year appear long. Beyond that, nearly everyone agrees that online betting may be unstoppable because of the reach of the Internet and the difficulty in regulating its activity.

"...Proponents of Internet gambling argue that the Congressional trend goes against the growing tide of international wagering. As many as 80 countries allow it in some form.

June 26, 2006

Free speech advocates speak out about "absurd" Washington State online gambling law

In case you've been living under a rock this past month - and this might be a good time to point out that living under a rock could actually be better than living in beautiful Washington State these days - you might not know it is now illegal to play poker online in places like Seattle, Spokane and Olympia, Washington.

That's because the state's governor, Christine Gregoire, has not only taken it upon herself to outlaw online gambling, she's also made it a felony with the same punishment given to child predators, second offense drunk drivers and drug dealers.

Director of the state's gambling commission, Rick Day, recently warned the Seattle Times.

"My suggestion to you is to remove from your paper any advice about online gambling and any links to illegal sites," Day said.

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