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Internet Gambling: Carruthers asks friends to lobby UK and EU Goverments |
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Written by Thomas Jensen
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Wednesday, 16 May 2007
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 Former BETonSPORTS CEO David Carruthers has sent a letter asking for individuals at the company’s former advisers (Evolution and Bakers Tilly) to lobby the UK government, the EU and UK and European Members of Parliament on his behalf as part of his attempts to use the recent World Trade Organization decision as part of his defense.
In the letter, Carruthers asks the recipients to write to Charlie McCreevy, European commissioner for internal market services at the European Commission, and Peter Mandelson, European commissioner for external trade, as well as UK and European Members of Parliament.
EU internal market chief Charlie McCreevy hinted he may challenge the ban at the World Trade Organization. McCreevy recently met with internet gambling patriot Barney Frank, the Chairman of the House Financial Services Committee from Massachusetts to discuss the matters.
The news of the letter emerged a matter of days after the US authorities in Utah unveiled further indictments against BETonSPORTS and 5 other internet gambling merchants. Also named in the indictment are those behind payment processing companies Gateway Technologies and CurrenC.
Egaming Review stated that Carruthers sent the letter at the beginning of May after a decision by judge Mary Ann Medler in St Louis, Missouri, to allow Carruthers’ lawyers to seek outside opinion regarding the recent finding by the WTO in favor of Antigua and Barbuda’s complaint against the United States in regard to internet gambling.
Carruthers accuses the United States government of actions which have “destroyed businesses, free competition and lives”. The letter adds that “now more than ever it is important to get heard” and that it is “critical to communicate and ensure that (the) impact and importance of this WTO decision are not lost to silence and inaction”.
Carruthers says the WTO decision has “extraordinary implications for my life” and adds that the issue “goes beyond my personal circumstances”.
The letter goes on: “The US decision to arrest me not only shut down BetonSports, but the actions by the US government have destroyed nearly all the public online gaming companies in the UK. Based on what the WTO has now called a treaty violation, more than US$10bn in equity of UK-listed companies were wiped away. BETonSPORTS plc is due to announce its formal insolvency arrangement on May 16th.
Three UK listed gaming companies have closed completely and other UK citizens have been arrested as well, victims of a policy that the WTO has now determined as unfair and violates their treaties.”
The “other UK citizens” would be Peter Dicks of Sportingbet. Peter Dicks was detained in New York on a outstanding warrant from the State of Louisiana. Dicks was allowed to leave the country without being charged with a federal crime because the state of New York refused to extradite him to Louisiana to face a state internet gaming charge.
While Point-Spreads.com believes that David should be free, any person who knows anything about business will tell you that 99% of the blame for the players getting screwed is from decisions Carruthers made while the CEO of BETonSPORTS.
Some of those stupid decisions included:
1.) To do live debates with Arizona Senator Jon Kyl over the internet.
While we admire David’s passion, not exactly the best way to win friends and influence people.
2.) To gamble with the players money by buying overpriced assets.
The company used up all the cash they had on marketing and acquisitions and were relying on a $30 million dollar line of credit to get them through football season. Once the indictments were handed down, the $30 million line of credit was closed by the financial institution that issued it. This put a severe cash crunch on the company. If they would have had the players post up dollars in cash, which they should have, players could have been paid already.
3.) Spend deeply on marketing while having a website that did not convert well.
Anyone in affiliate marketing will tell you that the BoS website was not user friendly and had trouble converting traffic at the same level as other more savvy competitors. The company continued to spend millions on advertising without upgrading the website for years. Point-Spreads.com estimates that BETonSPORTS.com would have generated as much as 50% more in revenues in its last year of operations had they redesigned their website to convert better.
4.) Likely was still in the credit business.
The company call center at the Mall of San Pedro in Costa Rica housed several credit operations that were paying rent to BoS or in business with the company and/or founders at one time or another.
5.) Get on that plane and connect through the United States.
Yes, I realize plenty of others were coming and going as they please at the time but the reality of the situation was everyone forgot that the United States government could and would act sooner or later.
Even if others made mistakes, the CEO is responsible for the company’s problems including those of the incompetent management team and staff. I suspect DC hired all the directors who fired him and closed the business.
Perhaps the UK government will finally stand up for the internet gambling industry now that Bush crony Tony Blair is stepping down as Prime Minister. I guess that is what Carruthers is banking on and we are sure he wants to get out of the United States before more indictments become unsealed.
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Last Updated ( Wednesday, 16 May 2007 )
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