BetOnSports Founder Arrested

Gary Kaplan was a New York bookmaker who went on to found BetOnSports, he was arrested recently.

Former BetOnSports executive David Carruthers was arrested last year in the United States while changing planes. The United States has since passed the Unlawful Internet Gambling Prohibition Act making it illegal for financial organizations to process Internet gambling transactions.

Kaplan was based in Costa Rica, which does not have an extradition agreement with the United States. His arrest was a joint operation by Dominican Republic police and the FBI. Kaplan was deported to Puerto Rico. Classified as a flight risk by the Puerto Rican judge before whom he appeared this week in an extradition hearing, Kaplan will soon be on his way to Missouri in the custody of FBI agents to face 22 criminal charges.

Kaplan's attorney, Maria Sandoval, said Kaplan would seek to be released on bail after he is taken to Missouri. Thousands of BetOnSports gamblers are still awaiting payment of their funds if they ever become available.

Kaplan was named in a 22-count criminal case alleging fraud and racketeering. Kaplan and 10 others, including Carruthers, have been indicted with racketeering, conspiracy and fraud and face calls to repay more than 4 billion in alleged betting profits.