US prosecutors say 11 people have been charged in a crackdown on a multi-billion-dollar internet sports betting website with operations in Britain, Antigua and elsewhere.
An indictment unsealed today charges the operators of Britain's BetOnSports with illegally taking bets from US residents and failing to pay US taxes on $3.3 billion in wagers from the US.
Five of those indicted, including the British head of BetOnSports, were arrested on the charges since the indictment was returned on June 1, the Justice Department said.
US authorities are seeking extradition of the others charged in the scheme, as well as the forfeiture of $4.5 billion in assets.
A federal judge in Missouri on Monday issued a temporary restraining order against BetOnSports that prevents the group from accepting bets from the US. The indictment charges the 11 with violations of the Wire Act on interstate gambling, racketeering and tax evasion.
The crackdown highlights the effort in the US to enforce a ban on internet gambling even though most of the sites taking bets are offshore. The dispute has strained relations with the Caribbean state of Antigua and Barbuda, a hub for Internet gambling, which has brought the matter to the World Trade Organisation.
David Carruthers, a Briton who is chief executive officer of BetOnSports, is in custody in Texas. Trading in shares of BetOnSports has been suspended in London.
* Shares in Paddy Power closed 2.5% lower at €12.50 in Dublin this evening - down 32 cent.
