Online Gambling Mogul Withdraws Guilty Plea

David Carruthers, the online gambling mogul that ran the now defunct sports betting site BetOnSports, decided to reject a plea agreement from US authorities just days before his sentencing. He has changed his plea to not guilty, according to an article in the UK Guardian. In the plea agreement, Carruthers agreed to just under three years in prison for operating an illegal betting site accepting US residents.



Carruthers was scheduledt to have his formal sentencing this Friday, but a court motion that was filed yesterday, instructed the court to disregard the plea agreement that was received and accepted. This decision comes as a shock to the online gambling industry, because Carruthers was expected to ask for time served under house arrest in lieu of prison time, allowing him to walk free on Friday afternoon.



When the plea agreement was made, the federal prosecutors agreed to drop six other charges that could have netted Carruthers with as much as twenty years in federal prison. Their has been no comment from the US government or the attorneys representing Carruthers to explain why the plea agreement was dropped. Within the plea agreement, Carruthers had agreed to cooperate in the prosecution of BetOnSports founder, Gary Kaplan and other defendants that are awaiting trial, and this may have something to do with the reversal.