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U.S. Arrests Online Gambling Company Chairman

Posted by Zonk on Thu Sep 07, 2006 05:19 PM
from the pokemon-next-on-their-hit-list dept.
imaginaryelf writes "Reuters reports that U.S. authorities have arrested Peter Dicks, the chairman of U.K. based online sports betting company Sportingbet Plc, while he was passing through Dallas. Just two months ago, the CEO of another U.K. based online sports betting company, BetOnSports, was arrested on U.S. soil as well. They are both charged with violating the 1961 Federal Wire Act, which can be broadly interpreted as declaring all forms of online gambling illegal in the U.S. Is online gambling the Alcohol Prohibition of the 21st century?"
+ -
story

Related Stories

[+] WA Law: 5 Years in Prison for Gambling Online 535 comments
tpoker writes "Online gambling has been an ongoing legal issue for the federal government, but Washington State has recently decided to take matters into their own hands. The Seattle PI reports, 'Beginning next month [June 7th], Washington residents who play poker or make other types of wagers on the Internet will be committing a Class C felony, equivalent under the law to possessing child pornography, threatening the governor or torturing an animal. Although the head of the state Gambling Commission says it is unlikely that individual online gamblers will be targeted for arrest, the new law carries stiff penalties: as much as five years in prison and a $10,000 fine.'"
[+] Technology: WA Law Means Linking to Gambling Websites Illegal 300 comments
tpoker writes "Following a previous story on Washington State making online gambling a felony, the Seattle Times reports that the first legal salvos have begun. 'The first casualty in the state's war on Internet gambling is a local Web site where nobody was actually doing any gambling. What a Bellingham man did on his site was write about online gambling. He reviewed Internet casinos. He had links to them, and ran ads by them. All that, says the state -- the ads, the linking, even the discussing -- violates a new state law barring online wagering or using the Internet to transmit 'gambling information ... Telling people how to gamble online, where to do it, giving a link to it -- that's all obviously enabling something that is illegal.'"
[+] News: U.S. House to Vote on Anti-Online Gambling Act 334 comments
SonicSpike writes to mention that the House is set to vote on an act designed to choke off the U.S. money flow to internet gambling. Though illegal here in the states, overseas operators are getting a good deal of business from individuals with U.S. bank accounts and credit cards. From the article: "The legislation would make it illegal for banks and credit card companies to make payments to these sites. It also allows law enforcement officials to force Internet service providers to remove links to the websites. Many major credit card companies already refuse to process such payments. Opponents of the bill, including online gambling sites and a new group representing U.S. poker players, noted the growing popularity of Internet gambling and predicted that people would continue to sidestep laws."
[+] Betting Against Online Gambling 175 comments
conq writes "BusinessWeek.com has an article looking at the possible consequences if anti-gambling legislation is passed. From the article: 'Just how much of a setback is the proposed legislation for the $12 billion industry? While online gambling companies generate half their sales from U.S. gamblers, the industry is operated almost completely by companies beyond the reach of U.S. regulators. [...] It's a lot of smoke and mirrors and misstatements.'"
[+] Technology: Internet Gambling CEO Arrested by FBI 298 comments
tightpoker writes to mention the news that several key individuals associated with online gambling site BetonSports have been indicted in a Missouri courtroom. Founder Stephen Kaplan, CEO David Carruthers, 9 other people and four corporations have been charged with crimes ranging from racketeering to fraud. The Sunday Time reports on the story as well, addressing fears this may be a prelude to a crackdown on all online gambling by U.S. law enforcement. From the article: "Nigel Parson, leisure analyst at Williams de Broë, said the move would 'throw online gambling stocks into a spin,' adding: 'David Carruthers is a prominent advocate of online gambling. The fear that this is an escalation of the anti-lobby will trouble markets.' Greg Harris, an analyst at Cannacord, said: 'It is too early to say if this is part of a broader strategy on prevention of internet gambling in the U.S. or if it is the Department of Justice flexing their muscles and trying to influence legislation.'"
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  • Yes! (Score:5, Funny)

    by Quaoar (614366) on Thursday September 07 2006, @05:21PM (#16062204)
    Now my $1000 bet that Peter Dicks would be arrested doesn't look quite so foolish...call my bookie!
  • Common sense (Score:4, Insightful)

    by kooky45 (785515) on Thursday September 07 2006, @05:24PM (#16062226)
    If you live outside of the US and have done something that the US have made illegal then don't go there.
    • by EmbeddedJanitor (597831) on Thursday September 07 2006, @05:39PM (#16062336)
      It is nuts to arrest somebody for a "crime" committed elsewhere (where it is not a crime). For example, in many parts of the world civilians are not permitted to own or carry handguns. Should somebody be arrested on landing in the UK because they happened to own/carry a handgun while in the US?

      This is either harrassment or just the US thinking it has rights to push the rest of the world around.

    • Re:Common sense (Score:5, Insightful)

      by ScrewMaster (602015) on Thursday September 07 2006, @06:08PM (#16062540)
      Insightful? I think not. Here, let me fix it for you: "If you live out side of the {insert any country here} and have done something that the {insert any country here} has made illegal then don't go there.

      Our government isn't in the habit of arresting foreign nationals for activities that are perfectly legal in their country of origin. But if he was providing illegal services to U.S. citizens then he put himself at risk. Why that is such a shock to you people I don't know, unless you just need another excuse to America-bash. People complain bitterly when a Google or a Yahoo complies with the laws of another country when they disagree with those laws, fully expecting that those companies should simply break that country's laws with impunity. And maybe they should: but the principle works both ways ... if you break our laws, even over the Internet, we have the right to subject you to those laws when you're on our territory. That's how it is anywhere in the world.

      Now, having said that ... I'd rather our government kept its grubby little paternalistic fingers out of our lives and let us give all our hard-earned cash to crooked foreigners if we so choose. One of the most cherished rights that Americans have always enjoyed is the right to go to Hell in our own way. But unfortunately we have a lot of people in power over here that think they know better than we do what is best for us, want to force their pattern for living on everyone else.
      • Re:Common sense (Score:5, Insightful)

        by tomhudson (43916) <hudson&videotron,ca> on Thursday September 07 2006, @06:19PM (#16062627) Journal

        Don't laugh - a lot of people are paying extra so they won't have a stopover in the US on the way to another destination, just to avoid the hassles, even if they have never done anything wrong.

        This is just going to make the situation worse. The losers are the US air carriers, and services based in the US.

        • Re:Common sense (Score:5, Interesting)

          by DJ Rubbie (621940) on Thursday September 07 2006, @06:41PM (#16062776) Homepage Journal
          You are right on the money.

          I lived in Toronto for 13 years, and I decided to go to New Zealand to visit some friends and see how the place is like for a longer term basis. Quickest way to get from Toronto, Canada to Auckland, New Zealand is probably take a flight from Toronto to LA, then from LA to Auckland. Seeing how soem of my muslim friends got treated in the US (more like his parents, who are elderly), me being "non-white", more tech savvy (I brought my computer along, I love my Shuttle box), I don't want to take the chance of having dealing with American customs and risk having my data inspected, so I took the long way, went to Hong Kong (I was born there), which was nice because I got to see my relatives and do some shopping, before leaving for Auckland a week later. My return journey will be the same, and I will never step foot in America again, even as a stop over (aside from the Anchorage technical stopover, but we never were allowed to get off the plane, which is fine with me).

          Even though the whole journey is about 8 hours longer in total flight time, it's worth it for me. Cathay Pacific gets my business also because they are one of the best airlines in the world. The price was right too, my mom's travel agent was able to secure the flight I took (round trip) for only CND$2200, which is definitely unbeatable. My parents told me they recently took a flight with Air Canada from Toronto to Vancover, they said the service was appalling and the staff did not know what to do, and the food and flight was expensive (CND$800 per person). It's absolutely disgraceful that North American airlines are completely backwards and behind in terms of service (given the cost) compared to their Asian counterparts.
  • by MosesJones (55544) on Thursday September 07 2006, @05:26PM (#16062249) Homepage
    Its another great example of the US deciding that its perfectly okay to have their laws apply to people from other countries, but the idea of an international criminal court that might try CIA and US Soldiers for torture and crimes against humanity then the answer is no.

    Remind me again why people think the US is imperialist?
    • by b0r1s (170449) on Thursday September 07 2006, @05:28PM (#16062265) Homepage
      They applied it in the US - if he didn't want to be subject to US laws, all he had to do was not fly into the US. Problem solved.
      • by A beautiful mind (821714) on Thursday September 07 2006, @05:34PM (#16062297)
        So you're saying the server hosting the site somehow flew into the USA?

        The only way they could have arrested him legally, if he broke a law in the USA WHILE in the USA.

        You cannot break US laws outside the USA, so in the UK what he does is perfectly legal.

        Why isn't the british diplomacy concerned about the kidnapping of a UK citizen? In the 18th century they would have sent the gunboats already.
      • by slarabee (184347) on Thursday September 07 2006, @05:48PM (#16062395)
        And the reason he wasn't arrested during the previous ten years of the gambling site's existence? He has passed through the United States multiple times in the past decade while participating in this orgy of criminal vice. He has even held press conferences in the United States during this time. Officials in the federal government were well aware Carruthers was in their jurisdiction yet have done nothing.

        Could it have something to do with a vote dealing with a ban on Internet gambling coming up in the legislature in the next couple weeks? Could it have something to do with the fact Carruthers has been a vocal opponent of the upcoming bill. Strange that. The man is arrested based on his involvement in running an Internet gambling company. Yet referencing the vote on banning Internet gambling requires using the future tense.

        Perhaps using a 1961 law that only questionably relates to the Internet and even more questionably relates to an individual operating out of a different country is not quite so sound...

        http://www.reason.com/sullum/072606.shtml [reason.com]

        http://scienceblogs.com/dispatches/2006/09/sullum_ on_internet_gambling_ar.php [scienceblogs.com]

  • U.S. a no go zone (Score:5, Insightful)

    by ConfusedSelfHating (1000521) on Thursday September 07 2006, @05:28PM (#16062263)
    In the near future, the United States of America may be a country that non-Americans fear to travel to. With the DMCA, the Patriot Act, association with gambling sites, corporate deals with Iran, corporate deals with Cuba ... you just simply do not know whether or not you will be arrested when entering the United States. If your non-American company did business with Cuba, could you be arrested? If you engaged in fair use of media in your country, could you be arrested for DMCA violations?

    You won't know until you are on American soil.
    • by syousef (465911) on Thursday September 07 2006, @05:51PM (#16062425) Journal
      I stopped wanting to go to the US a long time ago. My last name is Yousef and I'm very arabic looking. Never mind that my family's background is Christian not Muslim, that I don't believe in God, or that the work I do required security checks and clearance before I was employed. Last nail in the coffin was when they started fingerprinting everyone. I don't want to be treated like a criminal and randomly finger printed and searched all the way there and back. That's not something I want to do for a good job let alone for a holiday.

      In 1998 I went to the US to do training and none of this was a concern. The programmers boot camp I went to sucked by on one of my two weekends off in the 10 week hell I went to the Kennedy Space Center and I loved it! I always wanted to go back and take a look at the Grand Canyon. Now I wouldn't go if they paid me.

      Fuck 9/11. Fuck the terrorists. Fuck the people who've used it as a power grab. Fuck the blind sheep who'll let them until its too late. I've had a gut full of this bad behaviour from all sides. ...And if anyone wants to mod this as flamebait, that's fine be my guest, but before you do read the definition of a flame. I'm not saying these things just to piss people off. This is genuinely how I feel, and I'm not alone.
  • by mabhatter654 (561290) on Thursday September 07 2006, @05:32PM (#16062284)
    I still wonder how this is illegal for a non-resident, hosted off shore, with no servers in the US at all. Now it should probably be illegal for US citizens.. many individual states have laws against gambling in any form...but that would be a state issue to their citizens. I sort of understand how the Federal Wire laws make state crimes illegal because you "used" a federal regulated wire service, but I can't understand how they can arrest citizens of other countries for running the service legally in their own country.


    Of course, were the USA we can do what ever we want... I often wonder how we'd react if say Bill Gates was arrested in Communist China for being an "obscenely rich capitalist".. .I'm sure that's still illegal over there, and Microsoft sells to China.. so why should the reds take a chance at getting him? It's the same basic principle.

  • by subreality (157447) on Thursday September 07 2006, @05:46PM (#16062379)
    Is online gambling the Alcohol Prohibition of the 21st century?


    No. Marijuana is the Alcohol Prohibition of the 21st century.
  • by inviolet (797804) <pineminderNO@SPAMyahoo.com> on Thursday September 07 2006, @06:16PM (#16062607) Journal

    > L
    You are sitting in an airplane seat, in the coach section of an airliner. The airliner is descending.

    > I
    You are carrying:
    • briefcase
    • wallet
    • cellphone
    • car keys
    • ticket stub
    • sword
    • bloody axe

    >READ TICKET
    I don't see any ticket here.

    >READ TICKET STUB
    The ticket stub is for an intercontinental flight from Great Britain to Mexico, with a stopover in Dallas.

    >DALLAS?
    I don't know how to dallas.

    >DOES THIS PLANE HAVE A STOPOVER IN DALLAS?
    I don't see any plane here.

    >LEAVE PLANE
    Your seatbelt holds you in the seat, preventing you from standing up.

    >OPEN SEATBELT
    You cannot open that.

    >UNFASTEN SEATBELT
    Unfastened.

    >LEAVE PLANE
    You need to stand up first.

    >STAND UP
    You are now standing. The passenger sitting next to you looks agitated.

    >LEAVE PLANE
    The exit doors are locked, as the plane is still in flight.

    >FUCK
    I don't know how to fuck.
    The plane is about to land in Dallas. You are likely to be arrested by a grue.

    >ARE THEY GOING TO ARREST ME?
    I don't see any they here.

    >EXIT
    You cannot exit now.
    Your sword is glowing faintly.

    >QUIT
    You cannot quit now.
    Your sword is glowing faintly.
    • by Dachannien (617929) on Thursday September 07 2006, @05:32PM (#16062289)
      WHEREAS ALL they NEED to do and HAD to do is to bar all access from u.s. to that u.k. site

      If the US government did that, then you'd be complaining about censorship.

      The problem is that this guy and his company accepted money from US citizens who were on US soil in exchange for providing a service that is illegal in the US. It would be trivial for him to refuse credit card transactions for cards where the address on record is in the US, and at least then he'd have plausible deniability. Of course, doing so destroys most of his market, so it's easy to see why he wouldn't do that.

      • by mabhatter654 (561290) on Thursday September 07 2006, @05:41PM (#16062352)
        actually, credit card companies do not allow charges to known gambling sites... there are ways around... "paypal" type things for gambling, so the actual gambling site would not have "knowladge" that the person was from the US. Also, it's not for an out of the country site to abide by US law.. that's for US citizens to do on their own. Compare this issue to downloading libCSS from off shore, downloading MP3 from AllmyMP3 in Russia, or hosting porn in a friendly state.

        In the last three cases we expect the citizen to follow the law, because to restrict or monitor access would be UnAmerican. Gambling is a "vice" crime so to the law enforcement "religion" it's different. The fundamental problem is that it's easier for the govt to collar these guys illegally than it is to fix the real problem going on in the country. Also, "rightist" state legislatures and law enforcement work very hard to delay, subjorn, etc. the Will of the people to change these backwards laws. For them "Law" is the "religion" and so they should not "compromise" even if the people vote for it.

    • by MBCook (132727) <foobarsoft@foobarsoft.com> on Thursday September 07 2006, @05:35PM (#16062302) Homepage

      He let's Americans gamble on his site, so he lets them break the law. That's illegal. At least that what I'm guessing their logic is. My guess is that their claim to him is a little tenuous to say the least. I bet he refused to bar access from US betters. The US's stance is hardly unknown, especially if you are in that industry.

      I think that "online gambling is prohibition" comment is rather ridiculous. Online gambling is something people do from home, where one of the big things about prohibition is that it removed a common social activity (going to a bar with friends and to meet people). They are nothing alike except that they are both bans on something popular, and (are likey to get) overturned.

      Don't forget that there is a REASON online gambling is still illegal. While that act can be intrepreted that way, Congress could have easily changed that by passing a law. However, don't think that all the casinos in Vegas and elsewhere like the idea of online gambling. That could take away a LOT of a their business if it was legalized. I'd be amamzed if they weren't pouring out money to keep online gambling illegal.

    • by TrappedByMyself (861094) on Thursday September 07 2006, @05:40PM (#16062340)
      Well, go to betonsports.com

      "To contact BetonSports Customer Service please call toll free 1-866-481-3057. You may also send email requests to:
      customer_service@betonsports.com
      Customer Service hours are Monday to Friday, 10am - 10pm EST. "

      Hmm, looks like a US number and a US timezone there. May be UK based, but they are definitely targeting business to the US
      • by rainman_bc (735332) on Thursday September 07 2006, @06:39PM (#16062764)

        If a smoker wants to smoke in a public park, let them. It's a public place meant for everyone. You can't please everyone.


        If a smoker comes though and blows smoke in my general direction, it should be considered socially acceptable for me to go fart in that smoker's space too.

        Thing is, my space belongs to me. I find having cigarette smoke blown in my direction akin to invading my space. I find it more disgusting than the smell of fart, and more harmful to my health.

        I think we should start a campaign where we go and fart in smoker's spaces.