US, Swiss governments agree to split $49m seized from BetOnSports’ Gary Kaplan

Crime doesn’t pay, unless you’re a national government with the power to seize assets you deem to be the proceeds of criminal activity.

On Tuesday, Switzerland’s justice ministry announced that the Swiss government and their United States counterparts would share around $49m that formerly belonged to Gary Kaplan, the founder of defunct online sports betting operator BetOnSports.com.

For those of you not old enough to remember, BetOnSports was the Costa Rica-based online sportsbook whose CEO David Carruthers was arrested at the Houston airport in July 2006. Carruthers’ arrest marked the first shot in the US Department of Justice’s campaign against US-facing online gambling operators, which led to the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) a few months later and the exit of many US-facing betting companies.

Like Carruthers, Kaplan was eventually detained and sentenced to a lengthy stint in prison. Kaplan was also ordered to forfeit close to $50m in assets and hit with a hefty bill for unpaid taxes on his ill-gotten gains.