Forget Jailing Online Gamblers; How About Jailing Online Gambling Execs?

from the whoops dept

Last week, when the House of Representatives tried to clarify online gambling laws to make it clear that poker was bad and deserved jailtime, but horse racing and lotteries were good, the various online casinos laughed it off, with BetOnSports CEO, David Carruthers, particularly dismissive of the bill in the press, noting: "We continue to believe that the likelihood of the bill passing the Senate is remote." Investors agreed, pushing the stock of many online gambling sites up, as investors laughed their way to the bank. Who's laughing now, however? Authorities apparently detained Carruthers at a US airport during a stopover on his flight from the UK back to his home base in Costa Rica today. Investors aren't quite as happy, with the stock price of many online gambling sites dropping on the news.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    anonymous coward, Jul 17th, 2006 @ 4:18pm

    I love watching the online Don Quixote's (politicians) charging their web-based windmills (gambling, downloads).

    first

     

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  2.  
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    B, Jul 17th, 2006 @ 4:22pm

    Incomplete Story

    Why was he detained? Was it just for comments made?

     

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  3.  
    identicon
    Anonymous Coward, Jul 17th, 2006 @ 4:40pm

    Re: Incomplete Story

    good question, I have seen a few articles stating he was arrested, but none of which had any reference to why he was arrested.

     

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  4.  
    identicon
    Anonymous Coward, Jul 17th, 2006 @ 4:40pm

    Re: Incomplete Story

    Bloomberg says he "was indicted by a federal grand jury on charges of racketeering conspiracy in connection with a U.S. gambling probe".

     

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  5.  
    identicon
    Anonymous Coward, Jul 17th, 2006 @ 4:53pm

    horse racing and lotteries were good
    along with the stock market.

    Maybe it's not gambling per se that's bad but rather gambling competition.

     

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  6.  
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    kantankerus, Jul 17th, 2006 @ 5:43pm

    maybe expect to be goverend by stupid laws

    especially in countries where something is deemed illegal ?

    if i am not happy with an enacted law, and i choose not to accept it, i would avoid that area.

     

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  7.  
    identicon
    dont u get it?, Jul 17th, 2006 @ 10:24pm

    online gambling

    Dont you get it? US based lotteries, horse betting and casinos built on real estate provide an income source to run the govenrment thru income tax and business tax revenues. Virtual casinos offshore don't kick back an economic benefit to the US government or it's citizens like state lotteries. If they did there would be no problem. The economic benefit goes to Costa Rica, Gibraltar, Jamaica, or wherever there are gambling servers.
    So here we are pouring billions of US dollars into foreign accounts. The problem? The government has to print more money to keep up supply, because it isnt replenished thus increasing inflation because now your dollar isn't worth as much as before.
    I bet if the Senate enacted a law to tax winnings enforceably by every US based virtual gambler, then there wouldn't be a problem. But how to tax an online gambler and collect when they can't begin to collect on goods bought over the internet? I didn't win any money last week, did you? What winnings?

     

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  8.  
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    MrPaladin, Jul 18th, 2006 @ 4:33am

    Re: (above)

    yep, 'follow the money'... work out why Congress is so happy with horse racing find out where all the money goes and who's getting kickbacks...

    now theres something worth jailing...

    next they will want to arrest me for using play money to play poker.... no monopoly board is safe!!!!

     

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  9.  
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    Sanguine Dream, Jul 18th, 2006 @ 5:42am

    So lets get this straight

    does this proposal only affect online gambling sites in which there is actual money at stake?

    Its all about goverment control. If they don't run it, keep it in check, or aren't given the lion's share of the profit then it must be illegalized.

     

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  10.  
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    Yet another Anonymous Coward, Jul 18th, 2006 @ 6:14am

    Re: So lets get this straight

    An example recently in the news: Casinos in NJ had to close because of the govt. shutdown. The state regulators could not be present to make sure the state got it's share of taxes...

    So, the other gambling site owners take note:
    1. Move to a non-extradition country.
    2. Buy you own long-range jet for travel, to avoid where you aren't welcome.
    3. Use alternative funding mechanisms for payments.
    4. Continue business.
    5. But, don't make enough money to be worth an invasion.

     

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  11.  
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    Anonymous Coward, Jul 18th, 2006 @ 8:41am

    nonsense

    show me one major industry where million/billions of dollars ARENT going overseas

    most of america's industries are owned by foreign investors, tons of profits go overseas every year, and tons of them manage to avoid paying alot of taxes as well, by basing their companies out of p.o. boxes on grand cayman or something ;)

    i think maybe congress is just fishing for their payoff

     

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  12.  
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    eliot ness, Aug 12th, 2008 @ 9:25am

    provide the whole story

    what this story doesn't inform you about is the fact that it was asso'd w/ the Gambino crime family. need proof?

    http://www.gambling-law-us.com/Articles-Notes/online-gambling-arrests.htm

    search the page for "fafone"

    i'm all for free enterprise, but fuck the mafia.

     

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  13.  
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    Online Scratch Cards, Jan 22nd, 2011 @ 10:48am

    It's indeed the very truth that government would never be Jailing Online gambling Execs. Gambling yields the biggest economy to the country though it be online or real. US based lotteries, horse betting and casinos built on real estate provide an income source to run the government through income tax and business tax revenues

     

    reply to this | link to this | view in thread ]


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