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Online Gambling Companies Seek
to Remain in Business After BoS
Closes
Costa Rica's online gambling
companies said Friday they will
lobby the government to remain
open despite the closure of
BetOnSports.com because of legal
problems in the United States.
BetOnSports (BoS), on of the
country's largest online
gambling company employing
nearly 1.400 people, announced
Friday it was shutting down and
gave notice to its employees of
the decision.
But there are more than 200
other online gambling firms
still in operation and employing
a total of 10,000 people, where
the industry is unregulated.
The president of the Costa Rican
Electronic Gambling Association,
Eduardo Agami, said Friday the
industry planned to lobby Costa
Rican officials to allow them to
remain in business.
"The case of BoS is between them
and the U.S. government," Agami
said. He said the industry's
fate was in the hands of Costa
Rican officials.
BetOnSports faces a 22-count
indictment on fraud and
racketeering charges in the U.S.
District Court in St. Louis.
David Carruthers, the firm's
former chief executive, remains
in jail in the United States
after being arrested while
changing planes in Texas.
Prosecutors are seeking the
forfeiture of US$4.5 billion
(euro3.5 billion), plus several
cars and computers from
Carruthers and 10 other people
associated with the gambling
operation.
The judge contends the bets were
placed illegally, violating the
1961 U.S. Wire Act. The order,
which expires Monday but could
be extended, also prevents
BetOnSports from taking
U.S.-based bets.
Agami said his association's
members planned to analyze the
situation and work on a plan to
"calm the firms' employees, the
clients and the government."
Costa Rica's Justice Minister
and Vice-President, Laura
Chinchilla, said recently the
industry needs "serious
regulation."
Agami agreed.
"We believe that the industry
could be productive for Costa
Rica and should be allowed," he
said. "In the United Kingdom,
for instance, they regulate it
with operating licenses. Here
they need to establish the
limits."
Meanwhile, the BetOnSports'
offices at the San Pedro Mall
were a whirlwind of activity
Friday with former employees and
government officials coming and
going.
A U.S. federal restraining order
issued last month requires
BetOnSports to return any money
that American customers have
tied up with the site. Almost
all the wagers placed on
BetOnSports come from the U.S.
For the 53 weeks preceding
February 2005, the company's
sports betting operation had
more than 71,000 active
customers who placed 9.9 million
bets.
The average bet was US$109
(euro85).
Prosecutors said 97 percent of
the sports bets are made on
American football, basketball
and baseball.
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