Defendants in a scandal gambling trial in the US were charged by the U.S. federal authorities with dealing for BetOnSports, an Internet gambling company. The indictment sees the forfeiture of $4.5 billion in alleged illegal profits from the gambling operation. This case is being watched closely by the online gambling industry, which suffered badly from Unlawful Internet Gambling Enforcement Act, signed by President Bush last year. The case also has implications for trade agreements between the U.S. and other nations where online gambling is legal. Some countries complain U.S. violates trade agreements by taking legal action against non-U.S. companies.

Online Gambling, U.S. justice and WTO: global Internet gambling crackdown or e-gambling rise eve?

Again, online gambling ban, illegal online gambling, problems for USA online casino players and... for Antigua.

...The American defendants in the above case, Neil Scott Kaplan, his brother Gary Stephen and 9 others were accused in operating or working for BetOnSports, a company that was traded on the London stock exchange before U.S. authorities took action last year to shut it down. Sealed indictments were issued in U.S. District Court of the Eastern District of Missouri on June 1, 2006, for Neil Scott Kaplan including Kaplan’s brother, Gary Stephen Kaplan, the founder of BetOnSports, and 9 others. Neil Kaplan is free on $1 million bond; his brother, who authorities say was carrying five passports and a handcuff key when he was arrested, remains in custody. The indictment also sought the forfeiture of $4.5 billion in alleged illegal profits from the gambling operation.The 22-count indictment against the defendants alleges racketeering, conspiracy, tax evasion, money laundering and violations of the Federal Wire Act of 1961, which bans bet-making over the telephone.In late May -- one day before Gary Kaplan appeared in court for a detention hearing -- BetOnSports, which had also been indicted separately, pleaded guilty to charges of racketeering. The company, which handled billions of dollars in online wagers over its brief existence, has been reduced to a single Web page that informs visitors it is not accepting bets and "has been unable to repay customers due to cash-flow constraints, along with legal and operational disruptions."The investigation and indictment resulted from Missouri federal agents staging a sting operation in which they placed online bets through some of BetOnSports’ Web sites.Well before the BetOnSports indictments, other countries that allow online betting were looking with alarm at U.S. actions. In 2003, Antigua told the World Trade Organization that America’s "prohibition on the cross-border supply of gambling" was contrary to international trade agreements.In 2005, the WTO ruled that while the U.S. could regulate online gambling, any such bans must also apply to online parimutuel betting on horse racing, which is allowed in several states. The U.S. responded by floating a proposal to re-write its agreement under the 1994 General Agreement on Trade and Service to allow itself to bar such gambling.On May 22, the WTO ruled against the U.S., and Brazil and India both expressed concern that the U.S. plan could threaten Antigua’s economy and suggested that compensation is in order if the plan goes through.Fortunately, countries seeking WTO accession, like Ukraine, are not concerned about online gambling issues."Ninety percent of the reputable online betting business has left the U.S. market," said Andy Boyd, editor of OGPaper.com, an online publication devoted to Internet gambling.

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