Bet On Sports CEO Detained in USA

BetOnSports CEO David Carruthers was detained by US federal authorities while switching flights en route to the Costa Rica. The board of Bet On Sports said it was seeking "clarification" on the move. The stock sank 20%, and other operators, including FTSE 100 member PartyGaming, also dropped sharply.

PartyGaming fell 6 percent, Sportingbet dropped nearly 11 percent and 888 Holding dropped 6 percent. The British online sites operate in the U.K., where betting is legal. But up to 90% of their revenue comes from U.S. bettors, where such gambling is illegal.

On the BetOnSports site, for example, 90% of bets are on American football, basketball and baseball, three sports hardly played or bet on in the U.K. Last week the U.S. House of Representatives passed a bill that would prohibit banks and credit card companies from processing payments for online bets. It would also prohibit gambling companies from accepting credit card or electronic transfer payments for online gambling.

But the prospects for passage of the bill in the U.S. Senate remain uncertain as President Bush has only given limited support, saying he backs it but has unspecified "concerns."

July 17, 2006
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!