| News> Archive> 2006> September> Settlement Negotiations with Online Gambling Company |
Settlement Negotiations with Online Gambling Company
28 Sep 2006
Bet On Sports, the online gambling sports book that has made headlines for the past few months with the arrest and detainment of its former CEO David Carruthers, is negotiating with US prosecutors to end a 22-count lawsuit, which include charges of illegal online gambling gambling, tax evasion, mail fraud, and racketeering. On September 19th, 2006, the online gambling company’s lawyer informed the US District Court in St. Louis that Bet On Sports wished to settle the case. It was the first time that lawyers for the company had seen the inside of a US courtroom.
‘Basically, settling will allow us to show the investing community that we are reorganizing as a non-U.S.-facing operation. We think we can compete in that space, but the investing community isn't going to help until this cloud is no longer hanging over our heads,’ said a senior online gambling representative for the company. District Court Judge Carol Jackson extended the temporary restraining order barring the online gambling company from accepting wagers from customers located in the US until October 16th, 2006.
Online gambling and online gambling industry leaders will follow this story closely to see what the outcome will be and how it will affect the overall climate of the online gambling market. With this new trend of arresting online gambling company executives, concern is being raised among operators, investors, and, most importantly, online gambling players.
