Legalizing Sports Gambling Just Took a One-Two Punch

Brian Tuohy@@thefixisintuohyCorrespondent IAugust 15, 2009

ARCADIA, CA - OCTOBER 20:  A box holding betting cards is seen during the morning workout session before the 2008 Breeders' Cup at Santa Anita Park on October 20, 2008 in Arcadia, California  (Photo by Harry How/Getty Images)

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.

Related

    Ranking NBA Title Chances After the ASG

    Featured logo
    Featured

    Ranking NBA Title Chances After the ASG

    Grant Hughes
    via Bleacher Report

    Should Kyler Throw at the Combine?

    Featured logo
    Featured

    Should Kyler Throw at the Combine?

    Matt Miller
    via Bleacher Report

    PG, Gobert Could Ruin Dray's Shot at $235M Supermax

    Featured logo
    Featured

    PG, Gobert Could Ruin Dray's Shot at $235M Supermax

    Will Gottlieb
    via Bleacher Report

    Kraft Charged in Prostitution Bust

    Featured logo
    Featured

    Kraft Charged in Prostitution Bust

    via Bleacher Report