BetOnGoodLawyers

US authorities arrested the CEO of BetOnSports David Carruthers last Sunday during a layover in Dallas en route from the UK to Costa Rica. Along with Carruthers, Federal Officials have charged 11 other people from BetOnSports claiming they committed conspiracy, racketeering and fraud in taking online bets from residents in the US residents.

Carruthers has been a large proponent of sticking this in the face of the US government by making statements such as, "I don't think your law is enforceable, and I'm British so screw you!" As a CEO of a public listed company, he would have had a great deal of attention paid to him. Now he will face the full extent of US law in this regard.

In the aftermath of this event, concerned investors in other large sports betting companies, listed on the London Stock Exchange, jumped ship affecting the overall standing of many of these companies, such as SportingBet and PartyGaming whose stock price fell 17 percent after the arrest. Executives from these companies rejected the idea that this would affect the overall business, however, they are taking precautions by consulting lawyers and staying out of the US.

Online sports and gambling draws a lot of their business from people in the US, where officials have been trying to stop their activities as they are illegal. More than any other country where these actions are illegal, such as Australia, the US takes the harshest action against perpetrators.

It won't be long before the industry sees the result of this action on the stock market. Executives from other gaming companies will be anxious to see the results of this case as many of them could face extradition to the US where they could potential serve prison sentences.

The exact extend of the charges remains hazy, especially how the Wire Act of 1961, which based on telephone betting, is being applied to a 21st-century, Internet-based case. Stay tuned to GOM as this story develops.