Website betting boss told to give up Mr Big

Jul 23 2006

A MIDLAND internet gambling site boss could face life behind bars unless he gives up a Mr Big, sources said last night.

David Carruthers, 48 and from Bromsgrove, Worcestershire, was arrested by the FBI last week at a Dallas airport.

The businessman - chief executive of internet firm BetonSports - is now languishing in a Texas jail, awaiting trial on fraud and racketeering charges, with 10 others.

The US Government claims that BetonSports fraudulently took bets from Americans by phone and internet and failed to pay excise taxes.

Internet gambling on many sports is illegal in the US and many online betting companies have set up offshore bases to dodge the American laws.

But Stateside gambling expert Christopher Costigan believes the FBI is more interested in Mr Carruthers' former business partner and the company's founder, Gary Kaplan.

The US Department of Justice has issued a warrant for the arrest of Mr Kaplan, 47, who is charged with 20 felony violations. These include interstate transportation of gambling paraphernalia, interference with the administration of Internal Revenue laws, and tax evasion.

And if the Midlander refuses to help authorities to discover Mr Kaplan's whereabouts, he could face life behind bars.

Mr Costigan told the Sunday Mercury: "This is all about Gary Kaplan - that's who the authorities really want. David fell in with his group but he is not the key target.

"There is much more to this than meets the eye. Gary Kaplan is larger than life and an intimidating presence. Carruthers is more like a schoolteacher compared to him."

Kaplan has been in hiding for three years and is a notorious high stakes gambler who travels the globe with seven armed bodyguards.

Mr Costigan said: "I expect Carruthers to tell the FBI everything. They will be hoping to get enough information to go after Kaplan.

"Rumour has it that Kaplan was last seen in Costa Rica, although I doubt he is still there now. They will be doing everything they can to tempt him out of the woodwork.

"Carruthers was Chief Executive Officer in all but name while people like Kaplan pulled the strings in the background. Carruthers is definitely not Mr Big."

The world of online gambling has been rocked by the arrest of Mr Carruthers, which is said to have wiped more than £600 million off the Stock Exchange value of internet gaming firms.

He has made waves across the Atlantic and his outspoken support of the on-line gaming lobby in Washington has seen him affectionately lampooned on gaming websites.

Carruthers had over 24 years' experience in the UK betting and gaming industry with Ladbrokes before joining BetonSports in June 2000, where he prepared the company for flotation.

He has been among the most outspoken people in the industry when it comes to lobbying for the right to gamble online, but he was unheard of in Britain before last week.

No FBI agent was available for comment last night.