BOS says closing US business

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BETonSPORTS says closing U.S. business

LONDON (Reuters) - Internet gaming group BETonSPORTS , which removed its chief executive from his job following his detention in Texas last month on racketeering charges, said on Friday it was closing down its U.S. business.

The company said it would cease operations in Costa Rica and Antigua, where its U.S. operations are based, because they were no longer viable amid a restraining order on the business and the charges faced by former Chief Executive David Carruthers.

BETonSPORTS said it would also pay any liabilities to staff and creditors and repay balances due to U.S. customers.

Carruthers and seven others have already pleaded not guilty to racketeering and other charges and a U.S. court has extended to August 14 an order barring the online Bookmaker from taking U.S. bets.
Carruthers was arrested by U.S. authorities in July while passing through a Texas airport.

The charges allege the company failed to pay U.S. excise taxes on more than $3.3 billion (1.7 billion pounds) in wagers taken from U.S. bettors. The government seeks forfeiture of $4.5 billion, removal of access to BETonSPORTS's Web sites in the United States, and the return of money held for U.S. account holders. The United States is the Bookmaker's biggest market.

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Last updated: 11-Aug-06 07:42 BST

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Friday, 11th August 2006 07:43

BetonSports confirms plans to close US-facing operations

LONDON (AFX) - BetonSports PLC has confirmed it no longer considers its US-facing operations, which are based in Costa Rica and Antigua, to be viable.

The company said it plans to cease its operations in Costa Rica and Antigua as soon as practicable, pay any liabilities to staff and creditors 'in an orderly manner', and repay balances due to US customers 'in an orderly manner'.

BetonSports made the decision in light of the temporary restraining order issued by the United States District Court for the Eastern District of Missouri preventing it taking bets from US citizens.

The order came after a 22-count indictment was served on BetonSports and 11 individuals, including Carruthers and the company's controversial founder Gary Kaplan, alleging various charges of racketeering, conspiracy and fraud.

The company said the repayments 'will take time and their successful completion will depend upon the company's ability to persuade banks and cash processors to release its funds'.

'It also will depend on the company's ability to realise further and sufficient funds from its assets and operations outside Costa Rica and Antigua and to earn sufficient profits from operations which are not US facing,' the company admitted.

In its statement, BetonSports said its directors are 'taking steps to ensure that the company will not knowingly accept any wagering transactions from US based customers' and will provide further updates in due course.