Considering that online sportsbook, BetOnSports, drew most of its patronage from U.S. based gamblers, the news of a site-wide shutdown has not come as a surprise to most gamblers and professionals in the online casino and sports gambling industry. Ever since the U.S. Justice Department began somewhat of a crackdown on U.S. based online sports gambling sites (in May of this year, the owners/operators of World Wide Telesports Inc. were arrested for encouraging American's to place bets online - which they did in the amount of over $2.5 billion since 1998), online casino and sportsbook operators have been on their guard.

In the case of BetOnSports, the Justice Department issued a restraining order, which mandated the website cease taking bets from U.S. citizens at once.  Meeting those requirements, the homepage of the online sportsbook's website now only has a small paragraph of text informing site visitors that due to the recent U.S. court filings, all financial transactions have been temporarily disabled.  Due to the unfolding events regarding the case, online account holders at BetOnSports have essentially found themselves - as well as their assets - in a state of limbo.  The telephone customer service line through the online bookie has also been temporarily disabled.

The injunction against BetOnSports was issued on Monday of this week by the U.S. Federal District Court for the Eastern District of Missouri. Charges of racketeering, conspiracy and fraud in connection with illegal online gambling have been placed on the company's CEO, David Caruthers (who is currently in jail), as well as ten other high-sitting members of the betting operation. The BetOnSports Board of Directors vaguely commented on the matter, saying they were exploring their legal options and rights.

As of today, BetOnSports has seven more days to appeal the restraining order.  And although the company denied claims they were in negotiations with the Department of Justice, online casino and gaming stocks climbed nearly 11% after falling from the initial news.  As for BetOnSport's stock, it has been suspended, and will very likely remain so until the court battle has settled. The legality of the Justice Department's actions is still being questioned, although the DOJ claims its actions are protected under the Wire Act.