In today's episode of the Carruthers files we learn that: (1) The Carruthers bail hearing is postponed and moved to St.Louis. (2) PartyGaming's Mitch Garber says Carruthers arrest doesn't make a senate ban any more likely. (3) Larry Gaydos of Haynes and Boone, LLP. says Carruthers arrest is counter-productive. (4) The BetonSports flotation was preceded by suitability enquires from the London AIM and (5) PokerChamps and Grand Virtual close their doors to all US players.
Carruthers bail hearing postponed and moved to St.Louis.
David Carruthers appeared in a brief 5 minute bail hearing in a Texas court. Carruthers did not speak. He was shackled at the ankles - handcuffs were removed shortly before the judge arrived - and he was dressed in an orange jail jumpsuit and matching canvas slip-on shoes instead of the jeans and T-shirt that he wore at a court appearance Monday.
Carruthers' high profile Texas lawyer, Tim Evans asked the court to postpone the bail hearing, which will be held instead in a federal district court in St Louis. No date was set. Evans declined to say precisely why he preferred to move the detention hearing to St. Louis.
PartyGaming's Mitch Garber says Carruthers arrest doesn't make a senate ban any more likely
AFX reported on some optimism on the U.S. legal situation from the
top man at Party Gaming, Mitch Garber, as the week ended.
Quoting Garber, the publication claimed that the indictment against
Betonsports and the arrest last weekend of its CEO is unlikely to
make any difference to the manner in which the U.S. Senate handles
the House of Representatives moves to prohibit rather than regulate
online gambling.
Garber played down the resultant fear and uncertainty while talking to AFX News. "I don't believe this is going to have an impact on the Senate," he said. "The Senate has been looking at bills by Kyl and Leach for eight years. There have been events such as Betonsports and others before and they have not led to the passing of a bill. I think we'll find out where the Senate stands very shortly," he added.
American lawyer says Carruthers arrest is counter-productive
The surprise airport arrest of a prominent UK internet gambling executive
this week is a counter-productive application of US law that ignores
complex international trade issues, says Larry Gaydos, partner in
the White Collar Defense/Antitrust Practice Group at U.S. law company
Haynes and Boone, LLP.
"Selectively targeting foreign businessmen who are respected
in their own country [in order to] sensationalize the issue is unfair
to the individuals and our friends in the international community,"
says Gaydos, who has extensive experience in white collar criminal
defense, foreign trade, and general criminal matters. "Long-term,
it may also have adverse consequences on US business. If the tables
were reversed, I am sure the US would be outraged."
"The issues involved are complex international issues involving trade and broader issues about the international policing of the Internet," Gaydos says. "The many problems associated with both these international issues require international solutions. The US attempt to do an end-run through a publicized arrest like this is legitimately perceived as arrogant and probably counter-productive to the mutual international goal of solving a growing problem."
BetonSports flotation preceded suitability enquires from London AIM
With the spotlight firmly on BetonSports group this week, it was
perhaps inevitable that journalists would start digging into its past,
and that of the colorful founder and still 15 percent stock holder
Gary Kaplan, who is at present being sought by the FBI on a 22 count
federal indictment.
The Times published an article which claimed that the broker that
supervised the BoS IPO in 2004 was "closely questioned"
by stock exchange regulators before the listing was permitted.
The Times piece says that Evolution Securities, the stockbroker that
advised BetOnSports on its flotation on the Alternative Investment
Market, was closely questioned by AIM regulators about the online
betting company’s suitability as a public company.
The Times reported that the stockbroker, formerly known as Evolution
Beeson Gregory, rejected suggestions that it should have disclosed
the checkered 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 percent shareholder.
PokerChamps bars US players
Players report that the popular online site owned by Danish poker
champion Gus Hansen and licensed in Malta, Poker Champs.com, is closing
it's doors to U.S. players - possibly as a result of the Betonsports
issue.
Poker Champs U.S. players have apparently been receiving emails from
the poker room advising them as follows:
"As part of the recent upgrade, PokerChamps has performed
a system change that begins the process of moving to a new platform."
Grand Virtual powered casinos, including Everest Poker, are also
understood to be returning to a previous policy of not accepting US
players.
William Hill gambling group, which had no problem with being identified
in expressing an opinion on the US developments, told the Guardian
newspaper that it was not unduly concerned by the events in the United
States.
Chief executive David Harding said: "We are doing nothing
illegal ... It [the indictment against BetonSports and others] doesn't
worry me at all ... If it gets the Wire Act into court and there is
any evidence that casino or poker bets [over the internet] are illegal,
then we will stop it."
William Hill stopped taking sports bets from the US ahead of its flotation
four years ago. It continues to take casino and poker bets.