BetOnSports.com founder Gary Kaplan pleaded guilty to conspiracy and violating wagering laws in federal court. Kaplan was the man who began online sports gambling.
Based out of Costa Rica, Kaplan's company had over one million subscribers and took in nearly $1 billion a year. As part of his plea, he agreed to forfeit $43 million which was paid off through his Swiss bank account.
Kaplan is facing 41-51 months in prison.
With his conviction, the future of on-line sports gambling in the US is in doubt. I don't believe the government has an issue with its citizens gambling, the issue lies in the inability to tax it.
As the government cracks down on this currently illegal endeavor, many customers will likely head back to their local bookie who many times, whether they know it or not, is connected to organized crime. Here, there is no oversight for gamblers and bookies alike.
On-line gambling at least had a corporate front to it.
Another development occurred with the state of Delaware's attempt to legalize sports gambling in time for the kick-off of football season. The NCAA and the four major leagues were all granted a early trial date in efforts to block Delaware from proceeding.
Many feel Delaware would win a state-based case, yet its opponents are taking a federal approach. We should see the results of this soon, as Delaware's sports gambling is set to launch Sept. 1.