19 July, 2006 - Published 14:23 GMT

BetonSports arrests rattle Antigua

Antigua & Barbuda has warned of the repercussions coming from the the arrest by US authorities of senior executives of BetonSports.

The company, one of world's leading online betting companies, also has business interests in Antigua.

Several company officials have been charged by US authorities with racketeering and conspiracy in the United States.

They include the company's Chief Executive Officer, British national David Carruthers.

Mr Carruthers, 48, was travelling to Costa Rica when federal authorities arrested him at Dallas airport as he changed planes.

The indictment charges 11 individuals and four businesses including Costa-Rica based Betonsports.

A warrant has been issued for the arrest of BetonSports founder Gary Stephen Kaplan, 47, who is charged with 20 offences including tax evasion and conspiracy.

Antigua and Barbuda's Finance Minister Dr Errol Cort said the arrests were significant for his country.

The island has been at loggerheads with the US over restrictions imposed by Washington on the island's lucrative online gambling industry.

"This is an important development because hitherto the American government only went after their own citizens.

The repercussions that this will have on the future development of the sector could be very far reaching."

Antigua & Barbuda had previously taken the US to the World Trade Organisation on the grounds that, by barring its citizens from gambling online the US was in violation of WTO rules.

It won the case but the US has appealed.

The Caribbean country has also bristled at the passage last week in the US of legislation that seeks to stop banks and credit card companies from making payments to internet gambling websites, with the exception of those which deal with lotteries and horse-racing.

It now has to get the nod of the Senate to become law.