BetOnSports Founder Pleads Guilty to RICO Statute Violation

Gambling News - August 9th, 2009 - Written by Glen

BetOnSports founder, Gary Kaplan, plead guilty today for the racketeering charges associated with his ownership of BetOnSports. BetOnSports was one of the largest offshore sports gambling businesses in the world, but is now defunct due to federal involvement.

The 50 year old businessman was charged with conspiracy to violate RICO predicates, conspiring to violate the Wire Wager Act, and violating the Wire Wager Act. He has entered a plea, a bargain that will forfeit over $43M in criminal proceeds. The money had been transferred one week prior to his entering the his plea of guilt. Should the terms be accepted, he will face between 41 and 51 months in prison.

His admissions include the establishment of several sports gambling enterprises in the sovereignty of Aruba, Antigua, and Costa Rica. He gave U.S. citizens the opportunity of sports gambling through both the Internet and over phone lines. The phone lines and web servers were based in different parts of the United States, but were ultimately operated remotely by those in the Costa Rican entity.

BetOnSports was hailed as overwhelmingly successful - in one year alone membership breached one million bettors. Over one billion dollars was traded that year, and the stock for BetOnSports had reached the London Alternative Investment Market. BoS was worth roughly $100,000,000 dollars to Kaplan, funds which were reinvested and placed into Swiss Bank Accounts.

Kaplan was arrested and held with out bond since March of 2007. He is scheduled to be sentenced on October 27th, 2009. The IRS and the FBI had covered the case, and now Kaplan will have to pay for the crimes for which he had admitted guilt.

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