No-one even tenuously associated with the online gambling world could have missed out on news of BetOnSports’ demise. Several of the company’s employees and associated firms were indicted for mail fraud in June, along with allegations of racketeering and wire fraud. Prosecutors for the state argued that BetOnSports purposefully violated the law by allowing U.S. customers to participate in online gambling by placing wagers over the phone and via the internet.

The news came to light after the firm’s chief executive officer David Carruthers was involved in a shock arrest at Dallas-Fort Worth airport on July 16. He was subsequently released on a $1 million bond providing he remained under detention in St Louis.

A temporary restraining order was implemented, prohibiting BetOnSports from accepting bets from gamblers based in the U.S. Between 2001 and 2005, the firm received approximately $4.6 billion dollars, the majority of which derived from U.S. bettors. On August 11, BetOnSports’ executives announced that the firm would no longer accept bets from U.S. gamblers, and all money would be refunded.
In recent developments, according to the St Louis Dispatch, District Judge Carol Jackson has agreed to extend the temporary restraining order under October 16 to give BetOnSports’ lawyers and state prosecutors further opportunity to negotiate.
BetOnSports’ lawyer Jeffrey Demerath reportedly told Jackson that the firm is keen to resolve all outstanding matters. Assistant U.S. attorney Michael Fagan agreed, assuring Jackson that both parties were confident of reaching agreement.

The appearance in court by Jeffrey Demerath was the first occasion a member of BetOnSports’ legal team made an appearance in St Louis’ federal court. Initially, state prosecutors experienced difficulty in providing the gambling firm with notification of legal proceedings. Chief executive officer David Carruthers was fired shortly after his July 16 arrest.

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