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The US withdrew its initial request to extradite Stanley and Beatrice Tollman under the old system, under which UK courts had to be persuaded that there was a case to answer. US prosecutors quickly applied again under the Extradition Act 2003. The couple claim this was an abuse of process.

The US is seeking a High Court ruling that the 2003 Act applies in the Tollmans’ case. The hearing continues.

Who, what and when of online betting allegations

Extracts from the US indictment against BetOnSports

The defendants:

BetOnSports plc, Gary Kaplan, Neil Kaplan, Lori Multz, David Carruthers, Peter Wilson, Norman Steinberg, Tim Brown, Direct Mail Expertise Inc, DME Global Marketing & Fulfillment Inc, Mobile Promotions Inc, William Lenis, Manny Lenis, Monica Lenis.

Accused of:

Racketeering conspiracy; mail fraud; transmission of wagers/wagering information; interstate transportation of gambling paraphernalia; aiding and abetting; tax evasion; interference with administration of internal revenue laws.

Allegations:

Gary Kaplan and others operated an illegal sports betting business in and near New York. After Gary Kaplan’s arrest on state gambling charges in 1993, he relocated his gambling operation to Florida. In 1995, he moved the illegal gambling business to Aruba, but he continued to operate primarily in the US. The businesses established toll-free telephone services and websites and caused these services to accept sports wagers from gamblers in the United States. In 1996-97, he relocated the operations to Antigua and then Costa Rica. Their primary revenue-producing business was illegal sports wagering in the US.

Among the first internet gambling businesses operated by Gary Kaplan was a computer-based sports book, which evolved into BetOnSports.com. He advertised it as the world’s largest online wagering service. His websites offered illegal wagering on professional and college football and basketball, professional and amateur sporting events and contests.

In 2004, BetOnSports plc, a holding company, was incorporated under the laws of England and the United Kingdom. Gary Kaplan, through a holding company called Boulder Overseas, retained approximately 44 per cent of BetOnSports stock.

David Carruthers was chief executive officer of BetOnSports.com and a director of BetOnSports plc.

BetonSports.com and related entities received taxable wagers of approximately $1 billion a year from 2001 to 2004 and Gary Kaplan, who owned and controlled them wilfully evaded the tax by failing to make wagering excise tax returns.

The defendants have acquired interests subject to forfeiture of at least $4.5 billion including all right, title and interest in BetOnSports plc, its subsidiaries and affiliates.

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