Internet gaming group BETonSPORTS said today that it had removed David Carruthers from his job as chief executive and from its board following his detention in Texas on racketeering charges.
'On July 24, the contract under which David Carruthers acted as CEO of the Company was terminated,' it said in a statement. 'This action was taken as a consequence of Mr Carruthers continued detention by US authorities,' the company said.
Mr Carruthers - arrested last week while en route from London to the company's base in Costa Rica - is among 11 people and four companies charged with alleged violations of America's Wire Act, which outlaws the placing of bets on sporting events via the telephone.
The London-listed company, which has been forced to shut down 85% of its business because of the case against it, said: 'Clearly, while he remains in the custody of the US government, he is unable to perform his duties'. It added that the company had been unable to speak directly with Mr Carruthers.
The 49-year-old's bail hearing in Fort Worth was adjourned last Friday so the case could be referred to Missouri, where the charges were laid.
The US Department of Justice indictment refers to 'illegal wagering on professional and college football and basketball', which BetonSports offers on its website. The US government claims BetonSports fraudulently took bets from US residents by phone and internet and failed to pay excise taxes.
Internet gambling on many sports is illegal in the US and many online betting companies have set up offshore bases to dodge the US laws.
BetonSports pointed out today that all other directors - appointed subsequent to the company's flotation in 1994 - had not been named in the indictment.
And it added that, since its listing, the company operated in accordance with the 'standards expected of a UK plc'.
'The board wish to make absolutely clear that none of the founders of the original business has any continuing role within the company,' the BetonSports statement said.
The company said it was currently evaluating its options and deciding what steps to take next.
