This is the story of David Carruthers, who was the CEO of online gambling company BetOnSports, until he was arrested in the United States under the Unlawful internet Gambling Enforcement Act. This is the story of online gambling.
David Carruthers was born in 1957 in Edinburgh, Scotland. He served as CEO and board member of the British online gambling company, BetOnSports, which was one of the biggest players in the US market.
A Career in Gambling
After Art college, in 1976, Carruthers joined Ladbrokes Plc,
the UK's
largest retail bookmaker. At the age of 19 he became the youngest betting shop
manager and remained with the company for 24 years, managing as many as 40 high
street betting shops.
Carruthers served as CEO from July 2000. It was a privately held company at the time, and listed on the London AIM stock market during his term as CEO. He was arrested on July 16, 2006 and ended his term as CEO shortly after, on July 24. He has since been under house arrest at a hotel in St. Louis as he awaits his trial.
His term was largely successful, as BetOnSports led the industry at large to growth and mainstream success. Between 1999 and 2004, the group generated a 276% increase in turnover. In a report released prior to his arrest, the company said it handled $1.77 billion worth of bets during the fiscal year that ended in 2006.
The Arrest
Carruthers was arrested at Dallas-Fort
Worth International
Airport in Texas
on a Sunday, July 16, 2006, as he was changing planes, traveling with his wife
Carol from the company's Annual General Meeting in the UK to Costa Rica, where he lived and
where the company had its operations based.
Ironically, Carruthers told shareholders at the General Meeting, only two days before his arrest, that the chances of the Unlawful Internet Gambling Enforcement being passed are 'remote'.
The Charges
Carruthers was arrested on charges filed in Missouri concerning his
company accepting wagers from US citizens. Carruthers himself is not an
American citizen.
The indictment was handed down against 12 defendants. It includes 22 counts, of which Carruthers is the only defendant charged with the Racketeer Influenced and Corrupt Organizations Act, aka the RICO charge.
Other charges include:
But in the end, it is widely speculated that his arrest was politically motivated, the Department of Justice flexing their muscle and pro-online gambling industry insiders being targeted.
In Limbo
Carruthers resides in a hotel in St. Louis area, is allowed to leave a few
hours a day and is monitored 24 hours a day. Hotel expenses are not covered by
the US,
but cheaper options, such as renting an apartment, is impossible since his
passport has been confiscated.
At least he is free, not behind prison bars, like BetOnSports founder, Gary Kaplan, labeled a "flight risk" by authorities.
As the trial keeps being put off, Carruthers remains under house arrest. The online gambling industry has largely recovered from the traumatic effects that followed the arrest and the passing of the bill in October 2006, though the US market has left the field and companies no longer target the North American market.
Even activity on the FreeDavidCarruthers.com is slow.
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