Disgraced internet betting website BetOnSports.com gets probation plus a $28.2 million dollar fine. Lawyers on both sides agree that the fine will likely never get paid.
The founder of BetOnSports.com, Gary Kaplan, was given a 51 month prison sentence last month and will have to give up $43.65 million dollars. In August Mr. Kaplan plead guilty to racketeering conspiracy, conspiracy, and violations of the Wire Wager Act. His actions were based on running one of the biggest offshore sports betting business in the planet. Oddly enough, his sentence also requires Mr. Kaplan to obtain a G.E.D. (High School General Education Development Test).
Tuesday came the BetOnSports verdict from a federal judge – 5 year probation and the fine. Company officials have complained that they have way more liabilities than they do assets, including up to $8 million that they owe former BetOnSports players.
Steve Holtshouser, Assistant U.S. Attorney, said that the actual money which is truly owed to gamblers in the United States is likely much more than that $8 million. Mr. Holtshouser believes that only 50% of these U.S. online betters went through the legal steps which were required as verification of the money amount that was owed. The other 50% may have been scared because they didn’t know that their gambling bets were legal or maybe they saw those legal emails in their mailbox and had some skepticism, perhaps thinking they were scammers trying to get their personal information for other purposes.
Gary Kaplan, BetOnSports founder, and other employees were indicted in 2006 on these federal charges which accused the company and these employees of putting together what amounted to an illegal betting service. In the course of the lawsuit, it was revealed through prosecution attorneys that more than $1 billion in betting wagers were handled by BetOnSports per year through their websites and telephone betting operations which were based in Costa Rica. When these indictments came in, the company immediately stopped accepted bets from the United States and then in 2007 the business decided to plead guilty to the racketeering conspiracy charge.
Former BetOnSports CEO David Carruthers also plead guilt to racketeering conspiracy, however, his sentencing date is still undecided. The brother and sister of Gary Kaplan also plead guilty to 2 felony conspiracy charges which amounted to ten months of house arrest. Along with the house arrest sentence, they had to give up $6 million dollars which they kept in Switzerland bank accounts.
U.S. federal prosecutors have been focusing on offshore sports gambling since back in 1997 and specifically BetOnSports since back in 2001. These prosecutors have said that BetOnSports lied to gamblers by making them think that any cash transferred to the business was in safe hands and could be withdrawn at any moment. Instead of holding this money in safe-keeping, BetOnSports used this money to expand business, using the money for operations like buying off another gambling firm which was a rival at the time.
The founder of BetOnSports.com, Gary Kaplan, was given a 51 month prison sentence last month and will have to give up $43.65 million dollars. In August Mr. Kaplan plead guilty to racketeering conspiracy, conspiracy, and violations of the Wire Wager Act. His actions were based on running one of the biggest offshore sports betting business in the planet. Oddly enough, his sentence also requires Mr. Kaplan to obtain a G.E.D. (High School General Education Development Test).
Tuesday came the BetOnSports verdict from a federal judge – 5 year probation and the fine. Company officials have complained that they have way more liabilities than they do assets, including up to $8 million that they owe former BetOnSports players.
Steve Holtshouser, Assistant U.S. Attorney, said that the actual money which is truly owed to gamblers in the United States is likely much more than that $8 million. Mr. Holtshouser believes that only 50% of these U.S. online betters went through the legal steps which were required as verification of the money amount that was owed. The other 50% may have been scared because they didn’t know that their gambling bets were legal or maybe they saw those legal emails in their mailbox and had some skepticism, perhaps thinking they were scammers trying to get their personal information for other purposes.
Gary Kaplan, BetOnSports founder, and other employees were indicted in 2006 on these federal charges which accused the company and these employees of putting together what amounted to an illegal betting service. In the course of the lawsuit, it was revealed through prosecution attorneys that more than $1 billion in betting wagers were handled by BetOnSports per year through their websites and telephone betting operations which were based in Costa Rica. When these indictments came in, the company immediately stopped accepted bets from the United States and then in 2007 the business decided to plead guilty to the racketeering conspiracy charge.
Former BetOnSports CEO David Carruthers also plead guilt to racketeering conspiracy, however, his sentencing date is still undecided. The brother and sister of Gary Kaplan also plead guilty to 2 felony conspiracy charges which amounted to ten months of house arrest. Along with the house arrest sentence, they had to give up $6 million dollars which they kept in Switzerland bank accounts.
U.S. federal prosecutors have been focusing on offshore sports gambling since back in 1997 and specifically BetOnSports since back in 2001. These prosecutors have said that BetOnSports lied to gamblers by making them think that any cash transferred to the business was in safe hands and could be withdrawn at any moment. Instead of holding this money in safe-keeping, BetOnSports used this money to expand business, using the money for operations like buying off another gambling firm which was a rival at the time.