Companies

BetonSports pleads guilty

BetonSports, the British online gambling company, has pleaded guilty to US federal racketeering charges.

Announcing the agreement, the US Department of Justice said by pleading guilty BetonSports admits it conducted an enterprise through a pattern of racketeering acts, including repeated mail and wire fraud, operating an illegal gambling business and money laundering.

David Carruthers, BetonSports chief executive, was detained by federal authorities in 2006, being picked up while changing flights in the US. This signalled the beginning of a US crackdown on online gambling, which culminated in legislation that effectively outlawed the industry.

US attorney Catherine Hanaway said: “This plea, combined with the terms of the civil injunction, should put an end to the BetonSports illegal gambling empire … This plea constitutes a submission by the company to the US justice system”.

BetonSports now faces a fine of up to $500,000 and possible forfeitures.

June 2007