The demise of BetonSports took a new turn this week in court, with several players accusing the sports betting firm of failing to pay out winnings. The gambling firm responded to customer complaints by claiming that it was unable to pay out winners due to e-cash merchant Neteller in turn failing to honor its contract with BetonSports.
The claim was firmly denied by Neteller’s Vice President of Corporate Development and Communications, Andrew Gilchrist. “Neteller is not holding any funds from BetonSports.com and thus has not frozen or held any reserve funds from this company,” Gilchrist told TheOnlineWire.com.

In an exclusive interview with the online news source, Gilchrist advised that Neteller has halted all transfers to the sports betting firm following indictments against individual staff members and related firms by the U.S. Department of Justice. However, Neteller continues to permit transfers from BetonSports in order to pay members their winnings.
In further bad news for the sports betting firm, the British daily The Observer reported that investors in the firm are considering legal action. "Shareholders in BetonSports PLC, the British internet gaming group that has been targeted by a US crackdown on online gambling, are considering taking legal action against the company's advisors Evolution Securities and Baker Tilly,” the report read. “They are unhappy that the history of the company's founder Gary Kaplan was not made clear at the time the company floated two years ago."
Reports have also come to light that BetonSports phone numbers have been disconnected without advising members. New numbers are expected to be linked to the United Kingdom where the company’s directors currently reside.
In further developments, the gambling firm’s disgraced former CEO David Carruthers has been released on bail in the U.S. However, one of the conditions of Carruthers bail is that he remains in a hotel in Missouri pending further charges.

BetonSports was forced to close its site to all U.S. players after it was targeted and prosecuted by the U.S. Department of Justice. As a result, more than 80 percent of the group’s business has been lost. An order from the federal court also demanded BetonSports to return deposits to players.

Back to August 2006 Online Gambling News
Back to latest Online Gambling News
Back to Online Gambling Archive