The recent arrest of David Carruthers, the CEO of BetOnSports in Dallas Texas while changing planes on his way to Costa Rica by US authorities raises some serious questions between gamblers who use offshore sportsbooks, and professional gaming advisors who recommend offshore books like myself. This happened on Sunday the 16th of July, and not only shut down a series of sportsbooks owned by his organization, it prompted the highly touted Bo Dog Sports and Gaming Convention to be cancelled in Las Vegas, which I was attending the following week. Oh how Uncle Sam loves to stick his nose into something that he does not control, simply because the US Government has no way to tax proceeds coming into the States from offshore books and Poker rooms, that is the KEY in this entire scenario, have NO doubts about it.
There were 10 others arrested under “conspiracy to take money on sports bets.” To my knowledge, and research, Mr. Carruthers is not a US citizen, and he is the highest profile arrested, as I cannot speak of the citizenship of the other 10 arrested parties. There was also charges against the advertising of his books and gamming properties in the United States by a federal grand jury. This raises serious concerns for many of us in the industry as a whole, and to sports bettors whose accounts are currently frozen, tied up in legal proceedings for the long term I would assume with this situation.
The bottom line is simple here. The US Government who has more than enough problems on their hands, driving the economy into the ground, escalating gas prices, a War in Iraq costing billions daily, not to mention American lives, and they have no business digging another hole that will cause more harm than good. How many hundreds of thousands of dollars will it take to prosecute a non-US citizen with an industry with more money and backing than most small 3rd world countries fighting them?
The US Government turns a blind eye to gambling when it benefits them. Revenues from State and National lotteries in the tens of millions of dollars, revenues from the State of Nevada and Atlantic City in the tens of millions of dollars. All of a sudden, they realize that they are missing the boat on a multi-billion dollar gambling industry offshore, fueled by Americans for the most part, สมัคร live22 so instead of devising a way to work with authorities offshore to track and tax winnings coming into the states as unclaimed income, to get their piece of the pie, they’ll just call them criminals and arrest them. Another colossal blunder by a government fueled on greed and corruption at the highest levels. Go do some good in world, feed the homeless, give the VA hospitals the money you would use to fight this trumped up charge to help war veterans in a war we should have been out of months ago.
Am a patriotic? Hell yes I am, however infringements on the rights of individual US citizens who CHOOSE to gamble offshore in a country where it is licensed and legal to gamble in no way is the government’s business in my opinion. Even worse, to arrest a non-US citizen, who is a CEO of an international company, on the stock exchange in London, is an extreme measure by right winged policies that need to be changed. Did you know it is legal to call a bookie and bet $100 on the Packers? You cannot get arrested for that, BUT the guy taking the bet can get arrested. When that same guy calls an offshore sportsbook to make the same bet, it is LEGAL for that book to take that bet as action, since that book is offshore and licensed and regulated by the government of that country to do so. A fine line that needs to be determined, and this case may very well affect the way things are dome in the near future.
Have NO doubts, gambling on sports drives ALL sports in this country with TV ratings, Direct TV sales, Las Vegas Sportsbooks, and many other tangible items to numerous to mention. I suggest a call to arms in the fight to eliminate offshore books, Poker Rooms, and casino’s by the US Government. I have contacted all my State Senators and Congressmen, and I suggest you all do the same to address this very important issue and right we all have in jeopardy.
Is this the end for online sports betting and online poker?
On July 11, 2006 the House Of Representatives approved a crackdown on Internet gambling that would ban not only sports betting but also online poker and casino games. Once again big brother is flexing their political muscle and dictating to the American people that they know what is best for them. The reality though, is that the U.S. Government does not have a hand in this cash cow pie. They can’t regulate it, they can’t profit from it and therefore they must abolish it. This is a multi billion dollar industry that the U.S. is simply not a part of.
The ramifications of removing a multi billion dollar industry from society are so vast, that one could not possibly comprehend the entire fallout that would occur should the ban become law. People who bet on sports will continue to bet on sports. We will undoubtedly see an increase of underground Bookies. You know, the guys in the back of the pizza shop with 25 phone lines ringing off the hook. Perhaps we will begin to see more organized poker games in the back room of your local pool hall. Maybe your neighbor will set up a mini casino in the basement of his home and invite you over for some Baccarat. These are all plausible scenarios. None of which are desirable or healthy for society. The point is people who enjoy gambling will find a way to gamble. The U.S. Government is just making it dirtier for them to do so.
The real impact will be felt by those who are directly and indirectly associated with online sports books, casinos and poker rooms. These are some very large Companies with some very large marketing budgets. Millions upon millions of dollars are spent on their online advertising campaigns alone. Search engines such as Google and Yahoo will suffer an enormous loss of revenue should this bill become law. There will be no need for these Companies to advertise in newspapers or magazines, on the radio or television. All the revenue generated through these Companies marketing campaigns will vanish overnight.
There are also thousands of website Owners on the Internet that feed off of these Online gambling houses. Many of which make their living through affiliate programs that many of these poker rooms and sports books offer. It will be these Online entrepreneurs that will be affected the most. Not only will they lose the revenue that is generated through online gambling but they will lose whatever they have invested in the development, optimization and advertising campaigns associated with their websites.