David Carruthers is the former CEO of BetOnSports, the internet sports betting site. Carruthers has been on house arrest since July 2006 for charges stemming from operating the site in the United States. Two days ago Carruthers entered a plea agreement with the US government.

Carruthers agreed to cooperate with the upcoming prosecutions of BetOnSports officials along with his guilty to racketeering plea. For his cooperation, Carruthers will see authorities recommend a prison sentence of three years or less.

Judge Carol Jackson listened to Carruthers as he stated he knew he had broken the law. Carruthers stated that he was brought into the company by the founder, Gary Kaplan and that he thought online gambling was legal. Carruthers then stated that over time he realized it was not legal.

Catherine Hanaway, the prosecutor for the United States was quick to point out that in 2006 over $16 million of customers money was lost when BetOnSports went out of business. What Hanaway did not state is that the company had been current with all payments until the Department of Justice became involved.

Howie Blaine, a sports gaming expert commented on the case stating: "The government interferes with the business and indicts its officers, and then points to non-payments as signs of how corrupt BetOnSports was. But it was the Department of Justice that caused the payments to stop...If only companies that could run successfully under government persecution and arrest of top executives were allowed to operate; there'd be no business in the US.”




- 2009-04-03