BetonSports Execs Plead Guilty

Three former executives of defunct online sports betting operation have plead guilty to federal racketeering charges.

Siblings and co-founders Gary Kaplan, Neil Scott Kaplan and Lori Beth Kaplan-Multz, all plead guilty to the charges in a U.S. District Court in St. Louis earlier this week and have also agreed to forfeit money held in Swiss Bank accounts.

BetonSports began operations in 1995 and grew to become one of the largest online sports betting operations in the world by 2006, with wagering turnover of almost $2 billion annually.

According to prosecutors, Costa Rica based BetonSports website falsely advertised the fact that its online and phone betting operations were legal and customer funds were safe and secure. Meanwhile, those customer funds were being used to finance expanded operations, and when BetonSports ceased operating in 2006, $16 million worth of customer accounts were unable to be recovered.

Many of the affected customers were from St. Louis, owing to a BetonSports marketing strategy of advertising its operation on billboards near Edward Jones Dome during St. Louis Rams games. It is for this reason the case is being prosecuted in St Louis.