Dead Online Gambling Site Fined $28.2 Million Dollars

Gambling News - December 4th, 2009 - Written by Glen

BetOnSports was once one of the largest Online Gambling sites, but has since crumbled due to legal complications. BetOnSports founder Gary Kaplan was was recently sentenced to 51 months, or just over four years, in prison, and was personally fined over $40 million dollars. Now the dead and forgotten site has been fined $28.2 million dollars by a federal judge.

Legal officials do not think BetOnSports will be able to pay the required restitution. The company claims to owe American players nearly $8 million dollars, which is a figure that Assistant U.S. Attorney Steve Holtshouser, according to the St. Louis Post-Dispatch, claimed to be lower than reality.

BetOnSports, in addition to the fee, had also received five years probation by the federal judge who passed judgement on Tuesday. They report that liabilities outweigh assets at this point, causing more financial strain than they can contend with. Prior to the legal interdiction, BetOnSports was raking in over $1 billion dollars in wagers a year.

Several of the executives in charge of BetOnSports have faced indictment, including the aforementioned Gary Kaplan, former CEO David Carruthers, as well as Kaplan's brother and sister. Carruthers had originally copped a plea bargain but has since reneged on the deal and still faces trials and sentencing. Kaplan's relatives both received ten months house arrest.

Though the UIGEA has been postponed and may even face repeal, it is doubtful that USA Online sportsbooks will be affected either way. While BetOnSports has pulled from the United States market, subsequently losing its entire fortune, other online sports betting sites such as DSI are still available to be utilized for legal sports gambling.