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BETonSPORTS U.S. ban extended by Missouri judge A federal judge on Tuesday extended another 30 days an order preventing indicted online gaming company BETonSPORTS Plc from taking bets in the United States. The London-based company has not operated in the United States since mid-August after it and a dozen executives, several from related Florida companies, were named in a 22-count indictment alleging they failed to pay billions of dollars in excise taxes.

The order extending the ban was issued by Judge Carol Jackson of the U.S. District Court. Federal prosecutors and a lawyer representing the company told Jackson they were trying to work out some of the finanrcial issues raised in the indictment.

No details were made available and it was not clear if they were referring to the taxes the U.S. government claims it is owed or money that may be due to customers.

BetOnSports is negotiating a settlement BetOnSports PLC, the billion-dollar Internet gambling company targeted by federal prosecutors in St. Louis and Washington, is negotiating a settlement of civil and criminal charges against the company, lawyers on both sides said in court here Tuesday.

"What we are interested in doing is resolving this matter," Jeffrey Demerath, a lawyer for BetOnSports, told U.S. District Judge Carol Jackson.

Assistant U.S. Attorney Michael Fagan agreed, telling Jackson, "I think we can resolve matters."

Jackson agreed to extend a restraining order until Oct. 16 to allow the parties to negotiate.

Neither lawyer would comment after the hearing.

Tuesday marked the first time a lawyer for BetOnSports has appeared in federal court in St. Louis. Prosecutors initially had difficulty serving the company with required legal paperwork.

Although officials supplied then-Chief Executive David Carruthers with details of the charges against the company after his arrest in a Texas airport on July 16, the company fired him while he was still behind bars.

About $4.6 billion was wagered with BetOnSports from 2001 to 2005, according to court documents and the company's annual report. Most of the 9.9 million bets placed in 2005 came from the U.S.

BetOnSports, its employees and associated companies and individuals were indicted in June on charges of mail fraud, wire fraud and racketeering. Prosecutors say they knowingly violated the law by allowing U.S. customers to gamble and place bets over the phone and online.

The charges surfaced after Carruthers was arrested at the Dallas-Fort Worth airport on his way home to Costa Rica. He has been released on $1 million bond and is under home detention at a hotel in Clayton.

Prosecutors also won a temporary restraining order that barred BetOnSports from accepting bets from U.S. customers. The order also seeks to force the company to give up $4.5 billion and other property and hand over business records.

Company executives announced Aug. 11 that BetOn-Sports no longer would accept bets from U.S. customers, and that it would refund customer money held in existing accounts when it became available.

The only remaining issue appears to be customer refunds and the handover of company documents, as well as any penalties the company may face.

Although some industry observers initially had speculated that BetOnSports would ignore prosecutors and continue accepting bets from the U.S., an industry insider said the company is listed on the London Stock Exchange and must clear its name before resuming operations.

A BetOnSports customer from New York said she had called the company repeatedly and was told that there should be more information on customer repayments by the beginning of October. She asked not to be identified because of the ques­tions about the legality of online gambling.

A BetOnSports spokesman did not return a call seeking comment, nor did the company's lawyer based New York.

Judge Extends Court Order Against BetonSports

Sep. 1--A federal judge in St. Louis on Thursday extended a temporary court order against BetonSports, an Internet sports gambling operation, in hopes the London-based company would send a representative to respond to it soon.

An indictment unsealed July 17 alleges that the company took $3.7 billion in illegal bets from Americans over three years, and accuses it of mail fraud, racketeering and other crimes. Federal prosecutors sought an order prohibiting the company from selling its websites and ordering it to return bets to American players.

U.S. District Judge Carol E. Jackson has granted a temporary order to that effect, but lawyers for BetonSports have never appeared at the federal courthouse here to answer it. They didn't show up Thursday, either.

"Is anyone here from --Beton---Sports?" she asked to open a brief hearing.

"Just like the last time."

Marty Woelfle, a lawyer for the Justice Department's organized-crime unit in Washington, was in the room and told the judge the government has made some progress in formally serving papers on BetonSports' London headquarters. Woelfle said a process server in London expected to complete that task soon, and asked for a 30-day extension on the judge's temporary order, which would have expired today.

Jackson granted that extension.

Woelfle is seeking a permanent order to bar the company from taking bets and to force it to give up $4.5 billion.

On Aug. 10, the company closed its American operations. Its website, betonsports.com, explains the change and, among other things, promises to "repay balances due to U.S. customers in an orderly manner."

David Carruthers, the company's former chief executive, was arrested July 16 in Dallas, allegedly while trying to fly to Costa Rica, where the company has an operation. The company fired him after he was arrested. He was freed on $1 million bond on Aug. 16 from the federal courthouse in St. Louis.

BetonSports Still Stiffing U.S. Bettors 

Roy Mark 

U.S. gamblers holding accounts with BetonSports, the beleaguered London-based online betting site, are not likely to see their money any time soon.

BetonSports is also under a court order to return any balances in accounts held by U.S. bettors -- one of the many and complex legal issues facing the company.

That, according to a BetonSports spokesman, has not happened.

"We are not making payments right now," J.P. Masters, who is working a U.S. telephone response line for the company, told internetnews.com. "All of our accounts are frozen right now. We have no time frame for returning any money."

How many U.S. bettors affected by the order is unknown.

The next court action facing BetonSports is Thursday, when U.S. District Judge Carol E. Jackson will consider extending the temporary restraining order (TRO) against BetonSports that expires on Friday.

BETonSPORTS Back-tracks on Processors Holding Funds

Interviewed by Igamingnews.com BETonSPORTS Director of

communications Kevin Smith backtracked on the Board's statement to the AIM issued on August 10. "[Payments] will take time and their successful completion will depend upon the company's ability to

persuade banks and cash processors to release its funds." BoS Board

said.

"Neteller is not holding any funds from BoS.com and, thus, has not

frozen or held any reserve funds from this company. These business

controls continue to be in place. Neteller has indicated to its

members that all transfers from BetonSports.com must be initiated on

the BetonSports.com Web site and has provided customer service

contact information to reach BetonSports.com." Neteller Vice

President of corporate development and communications told

TheOnlineWire.com in an exclusive interview.

"The nature of the (BoS board's) statement forced us to be as vague

as possible," Smith told igamingnews.com. "But nowhere in our statement does it specifically say Neteller is holding our funds."

Kevin Smith also said he doesn't think the Theonlinewire.com and

Gambling911.com complaint filed with the AIM for alleged false corporate communication against his company is reasonable.

TheOnlineWire.com also accrued evidence that some Bank accounts

belonging to BETonSPORTS are not frozen, unlike BoS Board of

Directors wanted its shareholders and the general public to believe

with their statement made to the AIM on August 10.

The Status conference regarding temporary restraining order (TRO)

against BETonSPORTS will be held August 31 at 11.00am CST before

U.S. District Judge Carol E. Jackson. Observers believe the TRO will

be once again extended.

BETonSPORTS is unlikely to appear.

The company's attorneys never appeared at any of the previous hearings.

"Closure of BETONSPORTS PLC will not affect the prosecution of the

civil and criminal actions filed in the Eastern District of Missouri." stated U.S. Attorney Catherine L. Hanaway when she learned BoS has shut down its U.S. facing operations.

The intention to continue with the prosecution of the case may

ignite a political scandal in the United Kingdom. The peer of the House of Lords and Conservative Party's spokesman on Northern Ireland affairs Lord Glentoran is a non-executive Director and member of the Board of Directors of BETonSPORTS since July 8 2006.

Lord Glentoran told an Irish journalist that he won't comment on the specifics of what's going on "for legal reasons." Lord Glentoran also questioned "why it is only he who is being questioned about this when there are others in the company much more involved than he", the Irish journalist shared with TheOnlinewire.com.

"We have no comment to make." the Conservative Party Press Office

manager Mrs. Jennie Gorbutt told Theonlinewire.com when asked to

comment on Lord Glantoran's involvement with BETonSPORTS.

TheOnlineWire.com and Gambling911.com will meet again Thursday to discuss the future course of action in light of the outcome of

Thursday morning's hearing.

 Former BetOnSports CEO free on bail David Carruthers, 48, was released after a hearing before U.S. District Judge Mary Ann Medler. He had been expected to be freed as early as Monday but it took days to work out technical details. Among those details: A dedicated phone line had to be installed at the residence where he will stay.

Carruthers must remain in the St. Louis area until his trial. According to the terms of his bond, Carruthers will live at a hotel in the suburb Clayton. He will not be allowed to leave the hotel except for court appearances, meetings with his attorney or medical emergencies.

During the hearing, Carruthers asked the judge if the home-incarceration was 24 hours a day. She said it was.

BetonSports facing bankruptcy - 15/08/06

BetonSports is facing bankruptcy after a federal restraining order was extended yesterday. Judge Carol Jackson of the U.S. District Court in St. Louis said the order would be extended so that U.S. prosecutors could have more time to properly notify BETonSPORTS that it was being prosecuted in federal court. The order bars the online betting company from taking bets that originate in the United States, which accounts for nearly 80 per cent of its turnover.

Shareholders, of which Conservative peer Lord Glentoran has been revealed to include, and players stand to lose their stakes in the company. Lord Glentoran alone will lose an estimated £50,000 according to reports.

The company is facing further hearings today in Missouri to decide whether it was served in accordance with U.S. laws and eventually switch the temporary restraining order to a permanent one.

David Carruthers Released After Raising Bail

It has been reported that former BetOnSports chief executive David

Carruthers will finally be released from prison later Monday August 14th,

following his party's success in raising the required $1 million

dollars to make bail.

As part of the bail requirements, Mr Carruthers has been ordered to

stay in St Louis, Missouri, and will be fitted with an electronic

tag to monitor his movements during the course of the trial.

Reports suggest that Carruthers is likely to finance his own legal

defence, although BetOnSports has claimed that it will provide the

funding for his attorneys. This is despite the company's decision to

withhold the payment of deposits to its customers, with many

claiming to be owed five figure sums.

US Attorney Catherine Hanaway

has ordered all customer deposits be paid immediately, implying that

further actions may be taken against the company.

Last Friday the firm announced it was closing down its US business,

which resulted in the loss of around 800 jobs as well as raising

doubts over the long-term viability of the company

Advisers to Betonsports faced with legal action 

Nick Mathiason

Sunday August 13, 2006

The Observer 

The company was brought to the London stock market two years ago, but institutional investors are unhappy that the history of Betonsports founder Gary Kaplan was not made clear in the company's offer document.

Betonsports' representatives have insisted that Kaplan was not a director of the company, so it was under no obligation to detail his past, which includes a brush with the law over gambling offences in New York in 1993.

Kaplan, who is wanted by the US Department of Justice, faces possible charges of fraud and racketeering. He is said by those close to the company to have left Costa Rica for Israel.

One of the biggest institutional shareholders in Betonsports said: 'It [legal action] is possible given that certain information was not circulated at the time of the float. What's known now should have been known then. It's a disgraceful situation that's hard to explain away but individually it will be hard to get anywhere. Collectively, it's possible.'

Betonsports' float was handled by Evolution Beeson Gregory, now Evolution Securities. Baker Tilly was its auditor and reporting accountant. Both firms have said they supplied all the information that was required of them to the relevant listing authorities.

David Carruthers, the former chief executive of Betonsports, already accused of racketeering and fraud, has been incarcerated in a Missouri jail. His lawyers and family are believed to have raised $1m bail. Carruthers has pleaded not guilty to the charges and should be released from jail tomorrow.

Last Friday the firm announced it was closing down its US business, which generated most of its profits. Industry insiders say the closure of its US business will be a huge problem for the long-term viability of the company. Many predict the company will see its share price become worthless if it resumes trading. Its shares have been suspended for three weeks since the US authorities arrested Carruthers in Texas.

Betonsports hopes its decision to stop taking US bets will ward off any further legal action by US authorities.

American law makes it illegal for companies to take sport bets from US citizens via the telephone and internet.

Betonsports' withdrawal from the US will result in the loss of 800 jobs and will see it leave Costa Rica and Antigua. The company will now attempt to boost its presence in the potentially lucrative Asian market, having last year paid £17.2m for Easybets.

Feds Still going after BetOnSports.com

Federal prosecutors said Friday they will continue prosecuting BetOnSports PLC even though the online gambling company is shutting down its operations that take bets from U.S. customers.

Separately, U.S. Attorney Catherine Hanaway's office approved conditions for the release of London-based BetOnSports' former Chief Executive David Carruthers, according to his attorney, Scott Rosenblum.

Hanaway's case against BetOnSports is one of the most high-profile prosecutions of online gambling. Last month, her office unveiled a 22-count indictment against the company. It seeks a $4.5 billion forfeiture from Carruthers and 10 other people associated with the operation that the government claims fraudulently took bets from U.S. residents by phone and the Internet, and failed to pay excise taxes.

Carruthers, then the company's CEO, was arrested last month during a layover in Texas and should be released within days. Rosenblum said prosecutors are waiting for $1 million in bond money to be wired to St. Louis before his release. The large wire transfer was delayed by technical complications Friday but should arrive no later than Monday, he said.

In a brief statement released Friday, Hanaway said she learned that BetOnSports was closing its Costa Rica and Antigua offices that processed billions of dollars worth of bets placed from the United States.

"If true, closure of BetOnSports PLC will not affect the prosecution of the civil and criminal actions filed in the Eastern District of Missouri," the statement read. A spokeswoman said Hanaway wouldn't comment further on the matter.

The closure will have little effect on the government's case, said I. Nelson Rose, a professor at Whittier College of Law and an expert on Internet gambling.

"It's like robbing a bank and on the way out you change your mind -- which does happen -- you can't give the money back" and avoid prosecution, Rose said.

Carruthers was arrested during a layover in Texas as he flew from London to Costa Rica. His attorneys have been negotiating with Hanaway's office over the technical terms of his release since a bail hearing July 31.

On Friday, Rosenblum met with prosecutors in the chambers of U.S. Judge Mary Ann Medler. He said all parties agreed on the terms of Carruthers' release, which will require him to stay in the St. Louis area under electronic monitoring until his trial on racketeering and fraud charges.

Rosenblum said Carruthers likely would not be released until Monday afternoon because of the delay.

BetOnSports spokesman Kevin Smith said the company will lay off roughly 800 workers in Costa Rica and Antigua. He said the company will remain in business although it will no longer take any bets from the United States.

Smith said the company will focus on customers in Asia and South America, which together accounted for about 20 percent of BetOnSports' total revenue before the indictment.

However, Wayne Brown, an analyst at Altium said the decision was the "worst case scenario" that effectively spelled the end of the company, which currently generates almost three-quarters of its business in the United States.

BETonSPORTS shutters US business

LONDON (Reuters) - Internet gaming group BETonSPORTS (London:BSS.L - News), which removed its chief executive from his job following his detention in Texas last month on racketeering charges, said on Friday it was closing down the U.S. business, the driver of most of the company's profits.

The company's decision to halt operations in Costa Rica and Antigua, where its U.S. operations are based, puts a question mark over how BETonSports will recover from the ongoing court action it faces in the United States.

BETonSPORTS London shares have been suspended for the past three weeks.

Altium Securities analyst Greg Feehely described the company's decision to drop its U.S. business as the worst possible outcome for shareholders given the U.S. accounts for around 95 percent of profits.

"Today's news does at least draw a line under the situation and of course removes a significant competitor in the U.S. market ahead of one of the busiest periods of the year," he said in a research note.

BETonSPORTS might have to sell its Asian business to settle its outstanding liabilities, leaving nothing for equity investors, he said.

However, a spokesman for the company said it would be premature to comment on how BETonSPORTS would come through its current U.S. legal issues.

"The board believes they have sufficient assets to settle the liabilities of the business in an orderly manner," he said.

BETonSPORTS said earlier on Friday its U.S. operations were no longer viable amid a restraining order on the business and the charges faced by former Chief Executive David Carruthers.

The company said it would pay any liabilities to staff and creditors and repay balances due to U.S. customers. Its ability to do this would "take time" and partly depend on whether it could persuade banks and other intermediaries to release its funds, the company added.

"It will also depend on the company's ability to realize further and sufficient funds from its assets and operations outside Costa Rica and Antigua and to earn sufficient profits from operations which are not U.S. facing," BETonSPORTS said.

SEVERAL HUNDRED JOB CUTS

Management were taking steps to make sure the company did not knowingly accept any wagers form U.S. customers, it added.

Around 800 staff in Costa Rica and Antigua are losing their jobs due to the closure of the U.S. operations, said the BETonSPORTS spokesman.

BETonSPORTS's full-year results for the year to February 5 showed pretax profit of $14.9 million, compared with $13.3 million a year earlier.

Although the United States accounts for the lion's share of the company's business, BETonSPORTS has been expanding its Asian business via acquisitions including Easybets last year and China's sportsbook Hooball and 777ball in May. Easybets takes about 80 percent of its business from China and Hong Kong.

Feehely said that UK online gaming firms with significant U.S. business like Leisure & Gaming (London:LNG.L - News) and online bookmaker Sportingbet (London:SBT.L - News) were likely to be beneficiaries of BETonSPORTS' U.S. closure.

He said, however, that short-term sentiment across the UK online gaming sector was likely to take a fresh hit.

In afternoon trading shares in Sportingbet were 7.6 percent lower at 249-1/2 pence, while Leisure & Gaming was unchanged at 77 pence. Shares in PartyGaming were down 2 percent at 108-3/4 pence while Internet casino and poker room 888 Plc (London:888.L - News) was trailing its opening level by 1.4 percent at 73-3/4 pence.

Carruthers and seven others have already pleaded not guilty to racketeering and other charges and a U.S. court has extended to August 14 an order barring the online bookmaker from taking U.S. bets.

Carruthers was arrested by U.S. authorities in July while passing through a Texas airport. He was en route from the United Kingdom to Costa Rica.

The charges allege the company failed to pay U.S. excise taxes on more than $3.3 billion in wagers taken from U.S. gamblers. The government seeks forfeiture of $4.5 billion, removal of access to BETonSPORTS's Web sites in the United States, and the return of money held for U.S. account holders. The United States is the bookmaker's biggest market

Net Gaming Stocks Rally On US Comments

1438 GMT [Dow Jones] Share gains in online gaming groups, such as Sportingbet (SBT.LN), PartyGaming (PRTY.LN) and NETeller (NLR.LN), are probably the result of comments from the US regarding the recent BetonSports (BSS.LN) indictment, says Daniel Stewart.

"In summary, the chief protagonists in the BetonSports indictment, Federal prosecutor Marty Woelfle and  US Attorney Catherine Hanaway, have admitted that it is troublesome attempting to successfully prosecute individuals and companies that are based offshore.

Apparently, BetonSports was advised

not to turn up to the courts in St. Louis this week as it does not have a case to answer in the U.S. given its offshore (Antigua and Costa Rica) status," analyst James Hollins says. Sportingbet +11%, PartyGaming +8.2% and Neteller +19%. (LEV)

BetonSports Defendants Freed on Bail

By Tamsin Waghorn, Daily Mail, London

Aug. 1--Neil Kaplan and Lori Kaplan Multz, brother and sister of BetonSports' colourful founder Gary Kaplan, were among several people released on bail yesterday after pleading not guilty to racketeering, fraud and other charges.

David Carruthers, the incarcerated former boss of embattled online gambling group BetonSports -- who had also been expected in court -- did not appear, suggesting his bail hearing may have been delayed for a second time.

The US attorney's office in St Louis said the timing of Carruthers' arraignment must have been changed at the last moment.

There was also expected to be a court hearing to determine whether the Department of Justice could order BetonSports' US-facing websites to be permanently shut down.

About 80pc of its revenues are generated by these sites. Carruthers was arrested last month in the US. He was dismissed by the company last week. His arrest came just weeks after the House of Representatives passed a bill that could effectively ban online gambling in the US.

BetonSports Board of Directors could be issued arrest warrants

U.S. Attorney Catherine Hanaway warned Monday evening that any executives or high ranking employees of BetonSports PLC could be faced with arrest warrants for contempt of court if they come onto U.S. soil.  Attorneys for BetonSports PLC failed to show for a court hearing in St. Louis Monday following indictments against the company two weeks ago.

The company shut its websites down claiming this action was necessary in order that they adhere to U.S. prosecutors requests, yet BetonSports failure to show up in a Federal Court Monday suggested company officials had zero intention of abiding by the prosecutors demands.

Hanaway said it was very rare for someone to simply ignore a federal prosecution. "They're just doing what they have been doing," she noted. "I don't think it's surprising that they would continue to."

Marty Woelfle, of the Justice Department's organized crime and racketeering section, in Washington, told the St. Louis Post-Dispatch that Steve Cohen, a New York lawyer hired to advise the company, told her BetOnSports would not answer the charges.

UPDATE 2-BETonSPORTS figures plead not guilty

Mon Jul 31, 2006 6:10 PM ET

(Recasts with ex-CEO's not guilty plea)

ST. LOUIS, July 31 (Reuters) - BETonSPORTS Plc's <BSS.L> former chief executive and seven others pleaded not guilty to racketeering and other charges on Monday, while a judge extended to Aug. 14 her order barring the online bookmaker from taking U.S. bets.

David Carruthers, who was sacked by BETonSPORTS after his arrest by U.S. authorities two weeks ago while passing through a Texas airport, entered the not guilty plea and was ordered held while a bail arrangement was worked out.

The company said on July 25 that Carruthers was fired because he could not fulfill his duties while in custody.

Carruthers, a 48-year-old Briton, was wearing a prison-issue T-shirt and khakis and was led into and out of court in handcuffs. Negotiations for his release were under way, prosecutors and Carruthers' attorney said.

The terms would require Carruthers to post a $1 million bond and remain in the St. Louis area pending trial, while his movements would be monitored with a global positioning system device.

He was among 11 people and four companies that have been charged in a 22-count indictment unsealed in St. Louis, alleging racketeering, fraud, tax evasion and conspiracy.

BAN ON U.S. BETS

Meanwhile, another federal judge in St. Louis extended the ban on BETonSPORTS taking U.S. bets for another two weeks while prosecutors resolve questions about whether the company was served with the charges legally at its offices in Britain and Costa Rica.

A defendant in U.S. court cases -- whether a company or an individual -- must be contacted directly by the complaining party. Prosecutors told U.S. District Court Judge Carol Jackson that BETonSPORTS was served legally.

The company once again did not send a lawyer to the court hearings in St. Louis, triggering questions about whether it would seek to defend itself or instead take a position that U.S.-ordered sanctions against it were unenforceable. So far, the company has complied with the U.S. judge's order not to take wagers from U.S. bettors.

The charges allege the company failed to pay U.S. excise taxes on more than $3.3 billion in wagers taken from U.S. bettors. The government seeks forfeiture of $4.5 billion, removal of access to BETonSPORTS' Web sites in the United States, and the return of money held for U.S. account holders. The United States is the bookmaker's biggest market.

Prosecutors said a U.S. lawyer had advised BETonSPORTS about whether to send a representative to court, but that the company had decided not to.

"By not coming to court, you can make the assumption that since we weren't served, we can carry on our business in a normal capacity," said Kevin Smith, a BETonSPORTS spokesman, after the hearing.

Prosecutors had sought to make the ban on U.S. bets permanent, pending a trial.

Others entering the not guilty pleas were Neil Kaplan, Lori Kaplan-Multz, Tim Brown, William H. Lenis, William L. Lenis, Manny Lenis and Monica Lenis.

All are free on bond.

The Kaplans are related to BETonSPORTS' founder Gary Kaplan, the subject of a U.S. arrest warrant. The Kaplans and Brown formerly worked for BETonSPORTS. The Lenis family members held positions with Florida firms involved in the online betting operation.

One of the Florida firms, DME Global Marketing & Fulfillment Inc., entered a not guilty plea, while two other companies did not enter pleas.

Not guilty pleas entered in online gambling case  ST. LOUIS — Seven defendants named in a federal indictment of one of the world's largest online gambling companies, BETonSPORTS, pleaded not guilty Monday to federal racketeering and mail and wire fraud charges.

Neil Kaplan and Lori Kaplan Multz, the brother and sister of BETonSPORTS founder Gary Kaplan, were among those pleading not guilty to a 22-count indictment. The government claims BetOnSports and its employees fraudulently took billions of dollars in wagers from U.S. residents by phone and over the Internet without paying excise taxes.

No one appeared on behalf of the BETonSPORTS corporation.

Gary Kaplan is a former New York-area bookie now living in Costa Rica, authorities said. He remained at large despite the indictment.

David Carruthers, chief executive of BETonSPORTS, was expected to appear in court Monday afternoon and enter a not guilty plea.

Carruthers was being transported to St. Louis from Dallas, according to court officials. He was arrested July 16 by federal agents at Dallas-Fort Worth International Airport en route to Costa Rica, where the company has an office.

The Justice Department is seeking the forfeiture of $4.5 billion, cars and computers from the defendants.

BETonSPORTS fired Carruthers last week and the company has agreed to a judge's order to stop accepting U.S. bets. The company has also asked the London Stock Exchange to suspend trading of its shares.

A judge was expected to extend a temporary restraining order later Monday to halt all BETonSPORTS business in the U.S.

Also entering not guilty pleas at Monday's arraignments were BETonSPORTS ex-employee Tim Brown; William Lenis, 52, who owned Mobile Promotions, a Florida company that did promotions and marketing for BETonSPORTS; William Lenis' son and daughter, Monica and William Luis Lennis, and his nephew, Manny Lenis, who worked for Mobile Promotions.

William Lenis also owned two other companies named in the indictments.

A lawyer appeared for DME Global Marketing, another one of the Lenis family companies, which does work for BETonSPORTS, and pleaded not guilty.

U.S. Magistrate Judge Mary Ann Medler set a hearing date of August 21st for the defendants who appeared, but said that date may be postponed.

 2 Hearings Monday in BetOnSports Case 

DOJ Lawyers Involved From Start in BetOnSports Probe, Says Not Part of Governmentwide Crackdown

WASHINGTON (AP) -- Attorneys at the Justice Department headquarters here have been involved from the outset of an investigation by the US Attorney's office in St. Louis of BetOnSports PLC that so far has resulted in a court-ordered suspension of its operations and the arrest of the British online gambling company's chief executive.

David Carruthers was arrested July 16 at Dallas-Fort Worth International Airport in Texas while trying to make a connecting flight from the United Kingdom to Costa Rica, where BetOnSports is based. The site suspended U.S. operations July 18 following the issuance of a temporary restraining order by the U.S. government. On Monday, a hearing on the order is scheduled at the U.S. District Court in St. Louis. Carruthers, whose employment contract with BetOnSports was terminated July 25, will be arraigned in a separate hearing in St. Louis.

The BetOnSports case has garnered media attention because it is one of the largest companies to date that the government has taken legal steps against. In the fiscal year ended Feb. 5, BetOnSports said it had handled $1.8 billion in bets. The case also attracted attention because Carruthers has been an outspoken advocate of online gambling. "I'm optimistic that we can come to agreeable terms for his release," at Monday's arraignment, said Tim Evans, Carruthers' Fort Worth-based attorney.

Going after a high-profile player may not be coincidental, but the case, the latest of many the Justice Department has brought and continues to pursue, is not part of a coordinated federal crackdown on the industry, according to spokesmen there.

Carruthers, company founder Gary Kaplan -- who the Justice Department says is still at large -- and nine others were named in a 22-count indictment unsealed last week by federal prosecutors. The government says BetOnSports fraudulently took bets from U.S. residents by phone and the Internet, and failed to pay excise taxes. It is seeking the forfeiture of $4.5 billion, cars and computers from the defendants.

The Justice Department pursues cases that have the strongest evidence and greatest potential for deterrence, said spokeswoman Jackie Lesch, adding that the BetOnSports indictments were sealed June 1.

Catherine L. Hanaway, U.S. attorney for the Eastern District of Missouri, brought the indictment against Carruthers and said her office has a history of bringing cases against Internet gambling firms and companies that carry advertisements for them, including Paypal, the Discovery Channel and the Sporting News.

"Those cases have resulted in multimillion dollar civil enforcements," Hanaway said. Her office has been pursuing Internet gambling cases since 1998 and its "investigative and prosecutorial resources have great expertise" in that area, she added.

The BetOnSports investigation started long before Hanaway became U.S. attorney last July and the Justice Department lawyers in Washington had been involved from the beginning, she said, noting that an attorney from Justice's organized crime and racketeering section is working on the case. No other U.S. attorney offices are involved.

When asked if the case was part of a larger, coordinated Justice Department effort, Hanaway said she could not comment on ongoing investigations.

There is growing pressure from Congress and antigambling groups to crackdown on online gambling companies. Opponents of Internet gambling cite the always-available nature of the sites and the potential for addiction, bankruptcy and crime.

Experts who follow the industry -- estimated at $12 billion a year worldwide -- say U.S. law prohibits using phone lines to wager on sports, but using the Internet for other types of betting is still a legal gray area. They point to a 2002 ruling in which a federal appeals court in New Orleans dismissed a lawsuit against credit card companies that let gamblers use their cards to make online wagers.

The House earlier this month overwhelmingly passed legislation that would prohibit credit cards and other payment forms from being used to settle Internet wagers. The bill, which would exempt state-run lotteries and horse racing, would update current law to spell out that most gambling is illegal online, and would allow law enforcement officials to work with Internet providers to block access to gambling Web sites. It appears to be on hold in the Senate.

The BetOnSports case confirms that Internet gambling is illegal based on existing law, according to an aide for Rep. Jim Leach, R-Iowa, co-author of the legislation. But more needs to be done, the aide added.

 BETonSPORTS fires arrested CEO

LONDON (Reuters) - Internet bookmaker BETonSPORTS (BSS.L) has removed David Carruthers from his job as chief executive following his arrest in Texas on racketeering charges.

Carruthers, 48, has been in custody since July 16 when he was arrested by federal authorities while changing planes in Texas. He is one of 11 people charged with racketeering, conspiracy and fraud in a 22-count indictment.

"On July 24, the contract under which David Carruthers acted as CEO of the company was terminated,"

BETonSPORTS said in a statement on Tuesday. "Clearly, while he remains in the custody of the U.S. government he is unable to perform his duties," it added.

BETonSPORTS also sought to distance itself from founder Gary Kaplan, who U.S. authorities also want to arrest, saying he had not been involved in managing the group since it was listed on the London Stock Exchange in 2004.

Current News

Net betting firm's float was queried by the LSE

EVOLUTION SECURITIES, the stockbroker that advised BetOnSports on its flotation on the Alternative Investment Market in 2004, was closely questioned by AIM regulators about the online betting company’s suitability as a public company, The Times has learnt.

BetOnSports was indicted in the US on Monday on a range of charges including racketeering and money-laundering, forcing the company to withdraw its ”US-facing“ services.

A spokesman for Evolutionconfirmed yesterday that it had been questioned on BetOnSports’s AIM listing by the regulators. ”They had full and open discussions with AIM and they seemed happy with the details provided,“ he said.

The stockbroker, formerly known as Evolution Beeson Gregory, rejected suggestions that it should have disclosed the chequered past of its fugitive American founder, Gary Kaplan, in the share offer prospectus because he was not a director of BetOnSports but merely a consultant and 44 per cent shareholder.

The spokesman added: ”Did Evolution fulfil their obligations in terms of disclosure? Absolutely.“

The prospectus made clear the regulatory risks of running an internet and telephone betting business that targets Americans, a practice that it admitted was ”in violation of US federal laws“. But the only reference to Mr Kaplan was his appointment as a consultant to BetOnSports’s Antiguan subsidiary for an annual fee of $150,000 (£80,000). It did not mention that Boulder Overseas Corporation, the Panama-registered firm floating BetOnSports, is controlled by Mr Kaplan.

The London Stock Exchange confirmed that it was up to a company’s nominated adviser to decide on the level of disclosure beyond the basic listing requirements, and AIM regulators would become involved only if they had particular concerns. The adviser would then be asked to make extra checks to ensure proper disclosure.

The Times has learnt that at least one other investment bank declined to become involved with BetOnSports’s flotation, because of concerns over Mr Kaplan’s background and the fears that, even after the flotation, he might exert undue influence on the way the company was run.

The US indictment also says that Mr Kaplan, who was first arrested for his gambling activities in 1993, failed to pay excise taxes on more than $3.3 billion of bets.

·  Evolution is known for being accident-prone. In November 2004 it was fined £500,000 by the FSA for market abuse after short-selling shares in a quoted shell company, Room Service Group. Last year the broker achieved notoriety with its involvement in Regal Petroleum, a client, for which it raised £44.8 million in a placing just three weeks before the shares collapsed.

 No BETonSPORTS deal with US prosecutor

Wed Jul 19, 6:48 AM ET  

Online gaming group BETonSPORTS (BSS.L) has not reached a deal with U.S. prosecutors over charges against the company and its chief executive, a source close to the situation said on Wednesday. Shares in online gaming companies had earlier rallied after a gaming news Web site published a report saying the U.S. Department of Justice had reached a deal with BETonSPORTS allowing it to resuming trading by the end of the week. "No deal has been done between BETonSPORTS and the Department of Justice," the source told Reuters.

BETonSPORTS Plc Complying with US Feds  If you go to www.betonsports.com, the following appears.

IN LIGHT OF COURT PAPERS FILED IN THE UNITED STATES, THE COMPANY HAS TEMPORARILY SUSPENDED THIS FACILITY PENDING ITS ABILITY TO ASSESS ITS FULL POSITION. DURING THIS PERIOD NO FINANCIAL OR WAGERING TRANSACTIONS CAN BE EXECUTED. FURTHER INFORMATION WILL BE POSTED ONCE THE COMPANY IS IN A POSITION TO DO SO.

The BETonSPORTS.com

customer support team

Guess they are waiting to file an injunction or something?

Morgan Stanley owns BetonSports

The list of owners of major online casinos and poker rooms reads like

a Who's Who of the top investment firms. According to public filings,

tens of millions of shares of SportingBet are owned by Fidelity,

Merrill Lynch and Goldman Sachs. Fidelity Management holds the most

shares of SportingBet with $363 million in stock, or 14.1 percent of

all available stock. Merrill Lynch is next with a $164 million stake

in the company, while Goldman Sachs has $137 million invested.

Goldman Sachs and Morgan Stanley Securities hold large investments in

BetOnSports, another major online player. Morgan Stanley owns the

biggest stake, worth $25.6 million, but the company claims that the

investment is on behalf of one major investor who it refused to

disclose.

Gaming shares tumble as US targets BETonSPORTS Fears of a crackdown on online gambling in the United States knocked 600 million pounds ($1.10 billion) off the value of U.K. gaming stocks on Tuesday after the FBI moved to shut down the U.S. operations of BETonSPORTS.

U.K.-listed stocks in the sector, which lost more than 300 million pounds on Monday, fell again after BETonSPORTS asked that its stock be suspended.

Sportingbet.com Plc (SBT.L) plunged 35 percent, while Partygaming Plc (PRTY.L) fell 17 percent, 888 Plc (888.L) was off 13 percent, and BetandWin.com Interactive Entertainment AG (BWIN.VI) tumbled 24 percent.

Although online gaming is not explicitly illegal in the United States, the U.S. Justice Department has signaled its disapproval, saying it is barred by the U.S. Wire Wager Act.

As a result, online gaming companies have settled offshore in such locations as Antigua and Costa Rica and had been operating freely in the U.S. -- until this week.

"The language used in the Department of Justice release suggests to us there is the possibility that other Internet sports books could be targeted," said leisure analyst Richard Carter at Numis Securities.

BETonSPORTS said it was urgently trying to assess the impact of a temporary restraining order on its business in the U.S., its biggest market.

Defense attorney Tim Evans, who represented Carruthers at a brief court appearance in Fort Worth on Monday, was not immediately available for comment.

"This comes a week after the extradition of the NatWest Three, and a lot of companies will be looking at their travel plans," said leisure analyst Wayne Brown at Altium Securities. He referred to three British bankers extradited to the U.S. last week on fraud charges linked to collapsed energy giant Enron Corp. (Other OTC:ECSPQ).

"It's not just travel," said one U.K. gaming executive who declined to be named. "The U.S. has proved it can get to anyone it wants in the U.K. A lot of executives are feeling very uncomfortable."

British Prime Minister Tony Blair's spokesman declined to comment, when asked if gaming executives could be extradited to the U.S.

BETonSPORTS was among 11 individuals and four corporations facing various charges of racketeering, conspiracy and fraud in the indictment. The founder of BETonSPORTS.com, Gary Kaplan, 47, who lives in Costa Rica, was also charged with 20 felony violations and a warrant was issued for his arrest, according to federal prosecutors.

The indictment was handed down by a grand jury in St. Louis, and prosecutors said they would seek to try the case there. The U.S. Attorney in St. Louis, Catherine Hanaway, was appointed by President George W. Bush last December.

BETonSPORTS or Gary Kaplan  Who are they really going after?  Read the indictment below.  Looks like its G they want, not a company that has been legally formed in the UK and is licensed in Antigua…

Eleven Individuals and Four Corporations Indicted On Racketeering, Conspiracy And Fraud Charges

7/17/2006 5:34:00 PM

To: National and State desks, Legal Reporter

Contact: U.S. Department of Justice, 202-514-2008; Web:

http://www.USDOJ.GOV 

WASHINGTON - A federal grand jury in the Eastern District of Missouri has returned a 22-count indictment charging 11 individuals and four corporations on various charges of racketeering, conspiracy and fraud, the Department of Justice announced today. The indictment was returned on June 1, 2006, and unsealed today.

BetonSports PLC, a publicly-traded holding company that owns a number of Internet sportsbooks and casinos, was among the companies charged in the indictment. The founder of BetonSports.com, Gary Stephen Kaplan (G), 47, was charged with 20 felony violations of federal laws including: the Wire Act, Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy, interstate transportation of gambling paraphernalia, interference with the administration of Internal Revenue laws and tax evasion.

Other defendants in the racketeering conspiracy include: Kaplan's siblings, Neil Scott Kaplan and Lori Kaplan Multz; Norman Steinberg; David Carruthers, chief executive officer of BetonSports.com; Peter Wilson, media director for BetonSports.com; and Tim Brown, Steinberg's son-in-law. The three other charged companies, all Florida-based, were Direct Mail Expertise, Inc., DME Global Marketing and Fulfillment Inc. and Mobile Promotions Inc. Also charged are William Hernan Lenis; Monica Lenis and Manny Gustavo Lenis, owners and operators of the Florida companies; and William Hernan Lenis' son, William Luis Lenis.

"Illegal commercial gambling across state and international borders is a crime," said U.S Attorney Catherine L. Hanaway of the Eastern District of Missouri. "Misuse of the Internet to violate the law can ultimately only serve to harm legitimate businesses. This indictment is but one step in a series of actions designed to punish and seize the profits of individuals who disregard federal and state laws."

The indictment alleges that Gary Kaplan started his gambling enterprise via operation of a sportsbook in New York City in the early 1990s. After Kaplan was arrested on New York state gambling charges in May 1993, Kaplan moved his betting operation to Florida and eventually offshore to Costa Rica.

According to the indictment, BetonSports.com, the most visible outgrowth of Kaplan's sports bookmaking enterprise, misleadingly advertised itself as the "World's Largest Legal and Licensed Sportsbook." The indictment also alleges that Kaplan failed to pay federal wagering excise taxes on more than $3.3 billion in wagers taken from the United States and seeks forfeiture of $4.5 billion from Kaplan and his co-defendants, as well as various properties.

The indictment alleges that Gary Kaplan and Norman Steinberg, as the owners and operators of Millennium Sportsbook, Gibraltar Sportsbook, and North American Sports Association, took or caused their employees to take bets from undercover federal agents in St. Louis who used undercover identities to open wagering accounts. The indictment also alleges that Kaplan and Mobile Promotions illegally transported equipment used to place bets and transmit wagering information across state lines and that DME Global Marketing and Fulfillment shipped equipment to Costa Rica from Florida for BetonSports.com.

The racketeering conspiracy alleges that the defendants agreed to conduct an enterprise through a pattern of racketeering acts, including repeated mail fraud, wire fraud, operation of an illegal gambling business and money laundering.

In conjunction with the indictment, the United States has filed a civil complaint in federal court to obtain an order requiring BetonSports PLC to stop taking sports bets from the United States, and to return money held in wagering accounts to account holders in the United States. U.S. District Judge Catherine D. Perry issued the temporary restraining order today. A hearing in the civil case has been requested within 10 days. As authorized by federal statute, the FBI is issuing letters to four telephone companies, instructing them to stop providing phone service to the Internet sportsbooks and casinos operated by BetonSports PLC.

Gary Kaplan resides in Costa Rica and a warrant has been issued for his arrest. Neil Kaplan, 40, is in custody in Ft. Pierce, Florida. Carruthers, 49, a resident of Costa Rica and Bromsgrove, Worcestershire, England, is in custody in Ft. Worth, Texas. William Luis Lenis and Manny Gustavo Lenis are in custody in Miami. Tim Brown was arrested near Philadelphia. Warrants have been issued for the other defendants not currently in custody. The United States will seek extradition of all defendants to St. Louis for prosecution.

The charges are the result of a joint investigation by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The prosecution is being conducted by the Organized Crime and Racketeering Section of the Justice Department's Criminal Division and the U.S. Attorney's Office for the Eastern District of Missouri. The Florida Department of Law Enforcement, the Tampa Police Department, the Jacksonville, Fla. Sheriff's Office, and NFL Security and NCAA Enforcement Office personnel also assisted in the investigation.

The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty

UPDATE  3:30 PM Central Time FORT WORTH, Texas David Carruthers, whom authorities say runs an offshore gambling company that illegally takes bets from U-S residents, was ordered held in custody today until Friday after a brief appearance in federal district court in Fort Worth.

Federal prosecutor Mark Nichols summarized 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.

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.

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 today.

When a court officials asked Carruthers 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."

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.

BETonSPORTS CEO Detention unrelated to online gambling ban Breaking news of BETonSPORTS plc CEO David Carruthers's detention in Miami (Actually Dallas) travelled lighting fast this morning, shocking the entire gaming industry and negatively affecting gaming stocks on the UK Stock Exchange.

TheOnlinewire.com Costa Rica and U.S. sources report that Carruthers' detention is unlikely related to the online gambling ban (HR 4411) approved by the House last week but is more likely related to the federal investigation on BETonSPORTS's former owner Gary Kaplan.

It was known within the industry that Gary Kaplan was under federal investigation for his actions while at the helm of BETonSPORTS before the company went public in 2004. Sources report that federal authorities want to clearly identify possible criminal activities directly related to credit business ran by BETonSPORTS at the time Kaplan was at the helm of the company.

According to the same sources Carruthers' detention is related to the mentioned federal investigation. Investigators believe Carruthers might be in possess of information that could lead to Kaplan's indictment.

Gary Kaplan is rumored to be the real main man behind Igotsportsbook.com, a sportsbook established last year after Kaplan sold his remaining shares in BETonSPORTS.

Carruthers detained by US Feds on stopover Shares of British-based online gaming operators plunged on Monday after BetOnSports said its chief executive was detained while switching flights in the U.S., raising the prospect that American authorities are moving to crack down on overseas Web sites that allow U.S. citizens to bet illegally. 

BetOnSports (UK:BSS: news, chart, profile) said its CEO, David Carruthers, was detained by federal authorities while switching flights en route to the Costa Rica, where the company has call centers.

The board of BetOnSports said it was seeking "clarification" on the move.

BetOnSports plunged 20%, and other operators, including FTSE 100 member PartyGaming (UK:PRTY: news, chart, profile) , also dropped sharply.

PartyGaming fell 6%, Sportingbet (UK:SBT: news, chart, profile) dropped nearly 11% and 888 Holding (UK:888: news, chart, profile) dropped 6%.

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

Commentary

BetonSports David Carruthers unlikely ally, New York State government

The U.S. government has indicted BetonSports and several of its

former key executives including Brooklyn born founder Gary Kaplan and British CEO David Carruthers.

BetonSports has since fired Carruthers, who remains the only

individual still in custody. Carruthers must remain within the confines of an upscale suburban St. Louis hotel room while at all times wearing a tracking device on his ankle. U.S. prosecutors have deemed him a "flight risk".

Carruthers was initially picked up while changing flights in Fort

Worth, Texas. He was later transported to St. Louis where the charges were handed down. St. Louis handles most "tax-related" cases tied in with online gambling. Carruthers is not only accused of tax evasion

but various other charges including money laundering and violation of

an obscure 1962 wire act.

The U.S. government contends that running an online gambling

establishment that caters to its citizens is illegal no matter where

that establishment might be set up. In the case of BetonSports, we

are talking about Costa Rica and the United Kingdom, where the company traded publicly.

But Carruthers had a most unusual bedfellow in the way of a New York

State government agency.

Just three years ago, New York's Metropolitan Transportation Authority (better known as the MTA) accepted a check for $1 million to adorn its city buses with BetonSports advertisements. You couldn't miss them living or working in Manhattan. They were everywhere.

New York Attorney General wasn't happy with the MTA when they entered into an advertising deal with BetonSports, but the MTA still accepted the $1 million check

The MTA represented a government agency that actually conducted

business with an online gambling business and became $1 million

richer as a result. That money, we would assume, got pumped back into

the local economy.

Meanwhile, some U.S. politicians are working to pass a bill that

would make online gambling illegal.

In its first session Tuesday since the August recess, Senate Majority

Leader Bill Frist prioritized the appropriation bills, judicial nominee confirmations and halting Internet gambling as his top issues.

"Internet gambling threatens our families by bringing addictive

behavior right into our living rooms,"

The House of Representatives approved legislation in July updating

the 1961 Wire Act that bans sports wagering over the telephone to

include all forms of online gambling.

The bill would also force banks and credit card companies to refuse

payments to the estimated 2,300 offshore gambling sites located

outside of U.S. jurisdiction.

The Unlawful Internet Gambling Enforcement Act of 2006 (H.R. 4411)

specifically exempts online horse racing and state lotteries from the

legislation.

"We tried to get it done [Senate passage of the bill] before the recess but were unable to get unanimous consent to bring the bill up," Karen Weyforth, a spokesperson for Frist's office, told internetnews.com.

To make room on the jammed Senate calendar, Weyforth said Frist hopes

to bring up the bill for a vote "with very little debate" by limiting the time available for floor discussion of the legislation.

Onlinewire.com reports that BoS database has been stolen

Meanwhile the BETonSPORTS saga hit a new low. The former sports betting giant has been unable to secure customer sensitive data which is now being sold on the black market to other sportsbooks

operations.

Clerks and former management alike are offering customers lists with

full data: names, addresses, balances, recent transactions. BoS

players began reporting being approached by other sportsbooks they never signed up with.

Operations and marketing manager Clive Archer has been unable to

secure BoS customers' sensitive data. Archer, also known as the "last man standing" at BETonSPORTS, recently pointed his fingers to gambling information portals accusing them to "report lies".

Theonlinewire.com obtained proof of this act of theft consumed under

Archer's eyes. TOW received three separate lists from different sources. These lists will be made available to colleagues of the media to substantiate this new scandal within the scandal.

St Louis life: If internet gambling is 'a scourge on society', then

why not casinos?

By David Litterick

As David Carruthers was brought into courtroom 13 South of the Thomas F Eagleton courthouse in St Louis on fraud charges this week, a smartly suited man called Geoff Brammer sat at the back of the public gallery.

Brammer has no direct connection to the case but, as Britain's Deputy

Consul General in Chicago, it is his job to make sure Britons in custody abroad are well cared for and come to no harm. Brammer is fresh off the plane from London where three weeks ago he was given the job of crisis management - looking out for Brits caught up in the Lebanon conflict or the Asian tsunami.

Chicago must have seemed like a plum job at the time but at the rate

the US authorities are locking up British businessmen, one wonders if

he knows what he's got himself into. Soon, he'll be more familiar than most with the inside of courtrooms in the US. St Louis is likely to be just the start. But there are worse places to have to be than this Mid-Western city, which is about as close to the centre of the US as you can get with-out standing in a Kansas cornfield.

Straddling the Mississippi, it was once the frontier of the fledgling nation. It is known abroad, if at all, for its soaring arch on the banks of the river, whose mud-brown waters wind down to a shattered New Orleans and the Gulf of Mexico. The monument was built to commemorate President Thomas Jefferson and his drive to open up the west of the continent. Many of those who embarked on ventures to the Pacific Coast did so from St Louis.

"First in booze, first in shoes, and last in the American League," the wags once said of the city, in reference to its major industries and struggling baseball team. Anheuser-Busch, the brewer of Budweiser, still has its headquarters here, but the once bustling footwear and clothing companies are largely gone.

Once freed - something that should happen this week - Mr Carruthers

can combine two of the three with a visit to Busch Stadium, where the

St Louis Cardinals are again a force to be reckoned with. In his lighter moments, he may even appreciate the irony that if he walks a few blocks away from the court-house where he appeared, he will be free, once again, to gamble.

Despite US Attorney Catherine Hanaway's crackdown on internet

betting, the President Casino is still open for business. A boat afloat on the Mississippi, the President offers three decks of opportunity to lose your money on slot machines, roulette, blackjack or poker.

It's not a classy place, resembling nothing better than the gaudiest of amusement arcades at Blackpool Pleasure Beach. It's also supposedly strictly regulated, although you'd be hard pushed to notice. Punters can visit 22 hours every day and you don't even have to make an effort to get there. The casino lays on free shuttle buses from the suburbs.

As a sop to the religious right, who hold increasing sway in the state (Hanaway was controversially appointed by President Bush after

she ran his election campaign in Missouri) losses are limited -

although only to $500 every two hours. You can still lose more in one

week than the average American earns in a year.

As Anheuser retirees sit downstairs betting their retirement savings on Texas H