BetonSports Chief Executive David Carruthers Fired

BetonSports, the internet gambling company, said on Tuesday that it had terminated the contract of David Carruthers, its chief executive due to his continued detention by US officials.

"Clearly, while he remains in the custody of the US government he is unable to perform his duties. Further, the company has been unable to speak directly with Mr Carruthers," it said.

Mr Carruthers was arrested in the US on July 17 en route to Costa Rica, where BetonSports is based. The US Department of Justice has charged BetonSports, Mr Carruthers, company founder Gary Kaplan and associates and suppliers on 22 counts of racketeering, conspiracy and fraud in a move that could cause lasting damage to the high-profile online industry.

In addition to the announcement of the termination of Mr Carruthers' contract, BetonSports.com sought to clarify on Tuesday that no other director from the current board was named in the DoJ indictment, saying: "The board wish to make absolutely clear that none of the founders of the original business has any continuing role within the company."

Despite the turmoil created by the arrest of Mr Carruthers and the crackdown in the US, online gambling companies are continuing to record strong sales growth. On Tuesday, 888 Holdings, which operates an online casino, said sales increased 23 per cent to $80m in the second quarter as high-paying customers offset the fall in player numbers as a result of the football World Cup.

Poker revenues increased 48 per cent to $35m. However, 888 said that 67% of new paying customers came from outside the US. The Gibraltar-based, London-listed company said it remained confident about continued progress in the second half, despite the fact that its shares have dropped 21% since Mr Carruthers' arrest.

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