Online Gambling Site in Battle with NETeller

Online Gambling Site in Battle with NETeller/ August 2006
The online gambling site that has attracted the wrath of the United States government BetOnSports has got itself into another legal wrangle, this time with online payment company NETeller.

BetOnSports has closed its U.S. arm of the business following the arrest of the online gambling site's CEO last month. David Carruthers was on a lay over in Dallas Fort Worth airport when FBI agents arrested him. He was later charged with among other things, racketeering.

This new dispute has erupted because the federal court requested that the online gambling site returns all deposits to U.S. gamblers. The company says that it can not perform this request owing to the suspension of the online gambling sites contracts with internet cash processing companies like NETeller.

The vice president of NETeller has adamantly denied that his company is holding up the transfer of monies between itself, BetOnSports and their gaming customers. He said "NETeller is not holding any funds from BetOnSports.com and has not frozen or held any reserve funds from this company." He went on to say that his company stopped all money transactions to BetOnSports because of the indictments but still allowed payments from the company for gambling pay outs to its customers.

There are also moves to take legal action against BetOnSports PLC from the company's share holders. Share holders are considering taking action against the company's advisors Evolution Securities and Baker Tilly as they feel that information about the founder Gary Kaplan's dubious back ground was with held from them when the company was floated two years ago.

Feelings are running even higher after reports surfaced that the online gambling site disconnected all their contact numbers and addresses, leaving disgruntled players and investors with no method of contacting the company and not supplying those who want to get in touch with forwarding addresses or contact numbers.

The online gambling site is still operating its sites in other areas such as the Far East, but the majority of business – more than 80% - came from U.S. customers.