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The 2006 indictment accused BetonSports.com founder Gary Stephen Kaplan and others of running an offshore wagering enterprise that accepted bets from people in the United States. It was an accusation, not a conviction. Kaplan was arrested in 2007, pleaded guilty to three federal offenses in 2009, and was sentenced to 51 months in prison later that year.
Why was the BetonSports.com founder indicted?
A federal grand jury in the Eastern District of Missouri returned a 22-count indictment on June 1, 2006. The U.S. Department of Justice announced it on July 17, charging 11 individuals and four corporations. DOJ identified Kaplan as BetonSports.com’s founder and said he faced 20 felony violations.
The alleged business was a sports-bookmaking operation that moved from New York to Florida and then offshore, eventually to Costa Rica. The indictment’s listed charge categories included the Wire Act, RICO conspiracy, interstate transportation of gambling paraphernalia, interference with the administration of Internal Revenue laws, and tax evasion. These were prosecution allegations at the time, not findings of guilt. DOJ’s announcement stated that defendants are presumed innocent unless and until proven guilty. Read the Justice Department’s July 17, 2006 announcement.
U.S. Attorney Catherine L. Hanaway said in that announcement: “Illegal commercial gambling across state and international borders is a crime.” That was her statement as prosecutors announced the indictment, not a court finding.
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What happened to Gary Kaplan after the indictment?
Arrest in 2007
Kaplan was arrested in the Dominican Republic on March 28, 2007. The Justice Department reported that Dominican authorities sent him to Puerto Rico for an initial appearance before a U.S. magistrate judge. U.S. authorities sought his transfer to St. Louis to face the charges. Read the Justice Department’s arrest announcement.
Guilty plea in 2009
On August 14, 2009, Kaplan pleaded guilty to conspiracy to violate the RICO statute, conspiring to violate the Wire Wager Act, and violating that Act. He also agreed to forfeit $43,650,000. The FBI-hosted U.S. Attorney’s Office release describes the plea and forfeiture. Read the August 14, 2009 plea announcement.
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Sentence in 2009
On November 2, 2009, Kaplan was sentenced to 51 months in prison. The sentence followed his guilty plea; it was not a consequence established by the 2006 indictment alone. Read the November 2, 2009 sentencing announcement.
Was the BetonSports company also prosecuted?
Yes, but the corporate case should be distinguished from Kaplan’s individual case. An excerpt from a U.S. House hearing transcript states that BetonSports PLC pleaded guilty to the racketeering-conspiracy count on May 24, 2007, and that a permanent injunction had been entered on November 9, 2006. Those corporate actions were separate from Kaplan’s 2009 plea and sentence. See the U.S. House hearing transcript excerpt.
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Indictment versus conviction: the key distinction
The indictment set out allegations and charges in 2006; it did not establish that Kaplan was guilty. The later outcome was not an unresolved indictment: DOJ reported that Kaplan pleaded guilty to three federal offenses in August 2009, and the U.S. Attorney’s Office reported his 51-month sentence that November. The corporate plea and injunction were distinct proceedings and should not be treated as Kaplan’s personal disposition.
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