BetOnSports and UIGEA Mess in Layman's TermsPublished September 1, 2008 by OCR Editor
BetOnSports and UIGEA – when did it start, who was involved, why did it happen and what happens now? US tearing its teeth into online gambling, but will it hold?
The big bad UIGEA bill is fighting a losing battle.
While this law may be in place, the US government is seriously underestimating both players and the companies that take their bets. The sheer determination to have the basic human right of spending their own money and how to do so is being violated and few remain quiet about it.
So far, even while threatening and delivering legal actions, online gambling has only perhaps slowed a touch, but with the power of the Internet, if one site shuts down, three more will pop up in their place overnight.
BetOnSports has made some serious headlines recently, taking just about everyone down with them.
Here's the lowdown on what's really going on with BetOnSports in easy to understand terms.
Once a publicly traded company in the UK stock exchange, BetOnSports made their exit after charges were brought against them by the United States, stating the UIGEA bill as their reasoning, amongst others.
In order to avoid further criminal charges, the company agreed to supply evidence against their founder, Gary Kaplan, who had warrants out for his arrest months before he was captured and brought into custody.
David Carruthers, CEO, and his team were on a business trip from the UK to Costa Rica. While at their layover in Ft. Worth, Texas, FBI agents swarmed them, arrested and charged all members with over 22 counts claiming their company illegally accepted wagers over the phone and Internet from US customers as well as not paying applicable taxes.
Sentencing held on October 19, 2007 resulted in the shutting down of the website, multiple fines and the requirement to repay US wages from June 1, 2006 and on.
However, these American customers are finding it almost impossible to retrieve their leftover balances, which for some are totaling up to thousands of dollars.
Until then, players are waiting not so patiently and seeking other avenues to play. UIGEA or not - the US has its work cut out for them.
BetOnSports may be the sacrificial lamb but there is more than one kebab to cook my friends.