Online Gamblers Have Little to Fear From Crackdown

The recent high-profile criminal case against a major online gambling company, the US government has taken its most aggressive step yet to crack down on Internet gambling. But prosecutors have left untouched some key players: the gamblers themselves.

The Justice Department contends three federal laws make it illegal to operate an online gambling business, and U.S. officials have at times made statements suggesting it is also illegal for Americans to place bets on the Web. Yet federal prosecutors, as well as states that prohibit the activity, have largely left bettors alone.

Last week, federal authorities charged David Carruthers, the chief executive of BetOnSports PLC, and 10 others with racketeering and fraud for taking sports bets from Americans. Prosecutors alleged BetOnSports, which is based in Costa Rica, took wagers "almost exclusively" from U.S. gamblers. The government won a court order to temporarily shut down BetOnSports.com and other sites, but didn't file charges against any bettors. Instead, it asked BetOnSports to return funds held in their accounts.

The case raises the question: Why hasn't the government pursued U.S. gamblers? They accounted for roughly half of the estimated $12 billion in annual world-wide revenue for offshore casinos last year, according to research firm Christiansen Capital Advisors. Some gamblers are fearful they might soon become entangled in the government's widening probe, but legal analysts say there's no federal law that explicitly bars individuals from placing bets online, and few state laws that do.

For its part, the Justice Department said it is focused on the online gambling businesses, not individuals. "There is certainly not a law that expressly prohibits a bet by a casual bettor," said a Justice Department official in a phone interview. "We think that is more for state law to decide."

Catherine Hanaway, the U.S. attorney for the Eastern District of Missouri, who brought the indictments against BetOnSports, said she didn't consider pursuing charges against the company's customers. "There are limited resources, and we are trying to go after the worst first," she said. "Just like in the arena of gun dealers, we go after the biggest gun dealer we can find first."

July 25, 2006
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!