Former BETonSPORTS chief freed on bond

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August 17, 2006

ST. LOUIS (Reuters) - David Carruthers, the former chief executive of indicted online gaming company BETonSPORTS Plc , was freed on Wednesday on $1 million bond with strict curbs on his movements.

Carruthers, 48, must wear an electronic monitoring device and remain confined to a St. Louis residence except for special circumstances until his trial on racketeering and fraud charges, according to the court-ordered terms of his bond.

BETonSPORTS fired Carruthers after his July 16 arrest during a layover at a Texas airport and last week announced it had shut down its operations in Costa Rica and Antigua serving U.S. bettors. The company and a dozen executives, several from related Florida companies, are the subject of a 22-count federal indictment in St. Louis.

The indictment against the London-based company, which charges it with failing to pay billions of dollars in excise taxes, sent a shudder through the burgeoning online betting industry -- for which the United States is a key market.

Analysts say U.S. authorities want the courts to make online betting illegal based on an application of the 1961 Wire Act.

A judge in St. Louis has enjoined the company from taking bets from the United States through at least September 1 and ordered BETonSPORTS to repay bettors from their outstanding accounts.

BETonSPORTS, which has pledged to make good on its debts, has yet to offer a defense to the U.S. charges, or even to have a lawyer present in court.

Trading in its shares has been suspended for more than three weeks.

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