Briton arrested over illegal U.S gambling

Last updated at 09:09 18 July 2006


The British boss of an online gaming site has been arrested in the U.S accusded of illegally taking bets from American residents.

David Carruthers, whom authorities say runs an offshore gambling company, was ordered held in custody Monday after a brief appearance in federal district court.

Carruthers was detained Sunday as he tried to change flights en route from Britain to Costa Rica, where his BetsonSports PLC is based.

A sealed indictment had been issued in Missouri. Federal Magistrate Judge Charles Bleil ordered the indictment unsealed, but prosecutors declined to make a copy available until they could hold a press conference later Monday.

Federal prosecutor Mark Nichols summarised the multi-count indictment in open court, saying that Carruthers and several other people were charged with conspiracy in offering bets on professional and college sports to U.S. residents.

BetonSports took wagers on an Internet site and over a toll-free telephone line, Nichols said.

Carruthers is chief executive and a director of the company, which was incorporated in Britain. According to the company's Web site, Carruthers had over 24 years of experience in the British gambling industry with Ladbrokes PLC before joining BetonSports in 2000.

Kevin Smith, a spokesman for the company, said Carruthers had traveled recently in the United States and had no idea that there was an indictment.

"There was no hint of this," Smith said. "Certainly had they told us, we would have been more than willing to negotiate with them and work on whatever these charges are. There wouldn't have been any need to nab him while he's waiting on a layover for a flight."

Although Carruthers, 48, was detained, his wife, Carol, also a BetonSports employee, was allowed to continue on to Costa Rica on Sunday night, Smith said.

Prosecutors asked that Carruthers be held until he could be sent to Missouri to face charges. Bleil agreed that Carruthers would remain in custody at least until a detention hearing can be held Friday in Fort Worth.

Carruthers' first appearance in court lasted about 10 minutes. He was led into the courtroom in handcuffs, wearing a lime green T-shirt with the words "World Traveler" across the front, faded jeans and gray suede shoes.

When a court official asked Carruthers before the hearing if he had read the charges against him, he said no. Tim Evans, an attorney who appeared on Carruthers' behalf, handed him a document, adding, "You won't have time to read it all, of course."

During the hearing, Carruthers spoke only when the judge asked him if he understood the charges. "Yes," he replied.

Evans declined to comment after the hearing, saying he hadn't had time to fully read the indictment. Nichols declined to comment, and referred questions to prosecutors in Missouri, who declined to make the unsealed indictment available.

Internet gambling has become a political issue in Washington. Last week, the House passed a bill that would make it illegal for American banks and credit card issuers to make payments to online gambling sites. The bill's fate in the Senate is uncertain, in part because of exemptions granted for horse racing and state lotteries.

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