No Bail For BetonSports' Gary Kaplan

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Bail denied by St. Louis judge

The Evening Standard reports that Betonsports founder Gary Kaplan has been refused bail by St. Louis Judge Mary Ann Medler. Kaplan faces a number of charges under American racketeering and fraud laws and has been held in custody since his arrest in Dominica in March this year.

Directors of Betonsports admitted a charge of racketeering on behalf of the company last (May) month and undertook to cooperate with US justice officials in ongoing investigations believed to involve Kaplan, former BoS CEO David Carruthers and 10 other co-defendants.  None of the accused have yet been tried, and Carruthers has been under house arrest in St. Louis for almost a year.

After hearing evidence from both prosecution and defense, Judge Medler said there was a risk Kaplan would flee if freed. "The defendant and his family have no real ties to anywhere or to any community," Medler said.

Kaplan (48) first appeared in court last month on arraignment and pleaded not guilty.

The US Unlawful Internet Gambling Enforcement Act passed in October last year prohibits financial transactions in the US with online gaming companies but lawyers for BetonSports, Carruthers and Kaplan say the law doesn't make the acceptance of US bets illegal.

Following US Department of Justice activity, the once wealthy and industry leading BetonSports.com is insolvent and has filed for liquidation in the UK. The arrest of ex-CEO Carruthers and other DoJ actions, followed by the introduction of the UIGEA caused many top companies to exit the US market and inflicted losses of billions on investors and publicly listed companies.

In more recent times there have been reports that top Gibraltar-based companies Party Gaming.com and 888 Holdings have been in discussions with American law enforcement agencies, presumably seeking amnesty for pre-UIGEA activities in the US market.