When it came time for BetOnSports defense attorney, Jeffrey Demerath to show
up for criminal case proceedings in a St. Louis courtroom, he was nowhere to be
found. It was soon learned that Dermeath was instructed by BetOnSports
executives to cease from showing up to the proceedings, which Dermeath did not
further elaborate upon in a private interview. Prosecuting attorney, Michael
Fagan, said he will ask that BetOnSports be demanded to provide a sufficient
explanation why they did not appear, or be fined and held in contempt of court.
If BetOnSports continues to avoid court proceedings, thereby not taking any
action to defend themselves, they could be seriously fined for the criminal
charges against them. Back in July of last year, BetOnSports CEO, David
Caruthers, was arrested after getting off a U.S. bound plane. The company was
then hit with a 22-count civil indictment, charging several individuals with
racketeering, and ordering the forfeiture of $4.5 billion in order to pay back
outstanding accounts with U.S. players.
In November, BetOnSports signed an agreement that would ban them from doing
business in the U.S., thus ending the civil case against them. However, the
criminal case still stands, and seven people - Carruthers, the brother and
sister of founder Gary Kaplan, and four individuals working for a direct-mail
marketing firm in Miami - face charges of their own, which the defendants have
asked to be thrown out, based on violations of the World Trade Organization.
According to this argument, which has not been challenged by prosecutors yet,
the U.S. agreed to not prohibit the "cross-border supply of gambling and betting
services" when it signed a World Trade Organization treaty. The U.S., however,
has not lived up to its agreement, which the WTO itself ruled in an
international court case between the U.S. and the world's largest regulator of
online casinos and gaming sites, Antigua and Barbuda. By criminalizing online
betting activities, the U.S. is declared to be in violation of the WTO treaty.
Although there is a chance BetOnSports could get off the hook by this ruling,
there are other state laws which are entirely contradicting. In other words,
U.S. laws regarding the online casino and gambling industry - even withstanding
the recently passed Unlawful Internet Gambling Enforcement Act - is filled to
the brim with contradictions, carve outs and discrepancies. BetOnSports says
they will comply with paying out approximately 5,000 U.S. player accounts,
however, that has been delayed to an Antiguan court order regarding their
assets.