Betonsports has pleaded guilty to racketeering charges and agreed to co-operate in the US government’s case against founder Gary Kaplan and British former chief executive David Carruthers, federal prosecutors said on Thursday, the Financial Times reports.
The London-listed online gambling company accepted that it had committed “repeated mail and wire fraud, operated an illegal gambling business, laundered money and admitted to multiple state gambling felony charges”, according to a statement from the US attorney’s office in the Eastern District of Missouri.
The company is also in the process of filing for bankruptcy, according to the plea agreement and the company’s US lawyer.
Betonsports has been on the racks since Mr Carruthers was arrested on a stopover between London and Costa Rica last July. The majority of its business was in the US, but it has been forced to stop taking bets from there after the prosecution.
The plea bargain means that no more prosecutions will be brought against Betonsports in the Eastern District of Missouri and it states that the US government in the district does not plan to charge any more Betonsports directors.