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Gambling powerhouse BetOnSports’ former CEO pleaded guilty this morning in federal court in St. Louis to racketeering conspiracy and admitted helping to run an illegal betting operation.
David Carruthers, a citizen of the United Kingdom, served as CEO of the Costa Rican based online gambling giant from 2000 until 2006 when he was arrested and placed on house arrest one month after posting a $1 million bond.
Carruthers told the court that he was recruited in 2000 by BetOnSports’ founder Gary Kaplan and initially did not believe online gambling to be illegal. Carruthers, Kaplan and other associates were indicted in St. Louis U.S. District Court in 2006 on federal racketeering, conspiracy, mail fraud and gambling charges.
Carruthers has agreed to cooperate with authorities against the others still facing charges, in exchange for his guilty plea. Federal prosecutors will drop all other charges and have agreed to recommend no more than 33 months in prison.
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