Betonsports chief remains in custody

Online gaming group Betonsports chief executive David Carruthers waived his right to a detention hearing in federal court on …

Online gaming group Betonsports chief executive David Carruthers waived his right to a detention hearing in federal court on Friday and will remain in custody.

US magistrate judge Charles Bleil ordered marshals to transport Mr Carruthers to St Louis where a detention hearing and arraignment will be held. No date was set for either proceeding.

Mr Carruthers (48) has been in custody since July 16 when he was arrested by federal authorities while changing planes at Dallas-Fort Worth International Airport.

He was en route from the United Kingdom to his home in Costa Rica, where the company is based.

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Mr Carruthers, an outspoken advocate for online gaming, is one of 11 people charged with racketeering, conspiracy and fraud in a 22-count indictment that was issued in June but only unsealed on Monday.

A federal judge in St Louis has also ordered Betonsports to stop accepting wagers from betters within the United States.

Defense attorney Tim Evans said it was in Mr Carruthers's best interests to waive Fort Worth proceedings and to face the charges in St Louis. He declined to elaborate.

Following Mr Carruthers's arrest, gaming stocks on the London Stock Exchange nose-dived and trading of Betonsports stock was suspended at the company's request.

Three other companies, all based in Florida, were identified in the indictment as Direct Mail Expertise, DME Global Marketing and Fulfillment, and Mobile Promotions.

Named in the indictment along with Mr Carruthers were Gary Stephen Kaplan (47) the founder of Betonsports.com, who faces charges that he failed to pay federal wagering excise taxes on more than $3.3 billion (€2.6 billion) in bets from people within the United States.

The government is seeking forfeitures of $4.5 billion from Mr Kaplan and the other co-defendants.

Evans said he was confident an agreement could be reached to allow Carruthers to be released on bond while awaiting trial.

British betting and gaming group GalaCoral said yesterday it had blocked US citizens from placing bets on its websites.