Collide Magazine

BetOnSports Chief Executive Arrested in U.S.

The internet gambling industry was in disarray last night after the Scottish chief executive of BetOnSports, the Costa Rica-based operator, was arrested by US federal authorities at Dallas Forth Worth airport.

It is understandable that agents from the Internal Revenue Service were present at the arrest alongside FBI agents suggesting that any charges that might be laid against David Carruthers may be connected with tax issues.

Although Mr. Carruthers has been targeted by the authorities, his arrest is part of a wider investigation into possible tax evasion by a large number of individuals connected to BetOnSports dating back several years.

The detention, which was condirmed by the AIM-listed company in a Stock Exchange statement, immediately sparked fears of a possible crackdown on internet gambling by the authorities in American, where the pastime is a legal grey area.

The detention of Mr. Carruthers, a British citizen resident in Costa Rica, comes at a sensitive time in Anglo-American business relations after the extradition of the NatWest Three to the US to face changes that they conspired with executive of the collapsed giant Enron.

BetOnSports said it did not know why Mr. Carruthers had been detained and was unaware that he had been arrested or charged with any offense.

It said that the Scot had been detained while changing flights in America en route from the UK to Costa Rica, where the company is based. It said it was "seeking clarification as to the basis of the detention."

The timing of the detention is also intriguing as a Bill proposing that internet gambling be outlawed has just been passed by the House of Representatives and will go now before the Senate.