On Thursday BetonSports Plc. pleaded guilty to federal racketeering charges for its online gambling operations in the United States. As part of a plea agreement, the company will also provide evidence in the other cases pending against people it worked with.
The announcement was made Thursday by U.S. Attorney Catherine Hanaway for the Eastern District of Missouri where the cases are being prosecuted.
As part of the agreement, no further prosecution will be brought against the company. In exchange, BetonSports agreed to supply witnesses and evidence in cases pending against co-defendents.
Those co-defendents include former chief executive David Carruthers, founder Gary Kaplan and others involved with promoting the online gambling business in the United States.
BetonSports faces a fine of up to $500,000. Plus the maximum fine can be double the financial gain from or loss caused by the enterprise, so it could be even more.
The company is also subject to a permanent injunction which requires it to repay money received from U.S. gamblers held by the company as of June 1, 2006.
Evening Times Online in the U.K. is also reporting that the guilty plea has led to BetonSports to close its business for good, not just in the United States.
"It is going to be wound up and closed down," Jeffrey Demerath, lawyer for the company, told the newspaper.
The cases against the other defendants are still ongoing and no trial dates have been set yet.