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Sportingbet Clears Up Charges In Louisiana

$400,000 Puts Sportingbet on the Right Side of the Law

March 22, 2007

Peter Dicks, former Chairman of UK internet betting firm Sportingbet, narrowly averted extradition from New York to Louisiana last September. Had he been extradited, he would have been prosecuted under Louisiana law for illegal internet gambling. The company has now reached an agreement with authorities to pay $400,000 in exchange for having all charges dropped.

September 2006 was a month that shook the internet gambling industry to it's core. As the dust was beginning to settle from the arrest of BetOnSports.com's David Carruthers, the industry took another series of blows. First the arrest of Sportingbet.com's Peter Dicks at Kennedy airport in New York, then the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) by the US Congress.

Peter Dicks' business card boasted the title of "Independent Non-Executive Chairman". That title would have normally been something to be proud of, but it was exactly what landed him in handcuffs on September 6, while changing planes at Kennedy airport in New York City.

Dicks had been arrested in New York because of a warrant issued in Louisiana that charged Dicks with operating an illegal internet gambling business. The legal battle was a tough call for officials in New York, as Dicks was a citizen of the United Kingdom, where his internet sports betting business was not only legal, but was publicly traded on the London Stock Exchange.

The final decision on the matter eventually came to the desk of New York Governor George Pataki. Pataki refused to extradite the gambling executive to Louisiana, stating that the extradition would be in violation of New York Law. Under the State Constitution, in order for the accused the be extradited, they had to have actually been in the State where the alleged crime was committed, which is not the case for internet web sites.

"The governor does support the effort to restrict illegal offshore gaming but he does not have the legal authority to extradite Mr. Dicks," Pataki spokeswoman Jessica Scaperotti said at the time of the decision.

Dicks, who resigned his position at Sportingbet after the arrest, stated that he was grateful for the Governor's decision. Dicks then returned to the United Kingdom. His attorney said that after his client was safely home in Britain, he would turn his attention to having all charges formally dropped. It would appear that this goal has been accomplished.

After being released from custody in New York, the only hope Louisiana had for an arrest was if Dicks were to visit their State, which was just not going to happen. This left authorities in Louisiana with no choice but to strike a deal with the Sportingbet attorneys.

"They wanted to get the arrest warrants dismissed," said Earl Taylor, a District Attorney in St Landry Parish, Louisiana, where the arrest warrant was originally filed.

On Wednesday, Sportingbet released a written statement that said the company "has reached an amicable resolution with the St. Landry district attorney in the state of Louisiana."

The Sportingbet statement went on to say that ""All related warrants issued by the Louisiana State Police have been canceled with immediate effect."

The settlement agreed to by the company and the District Attorney was that Sportingbet would pay the sum of $400,000 to the State of Louisiana. The District Attorney's Office plans to use it's share of the money to aid in it's fight against internet crimes, including identity theft, child pornography and online gambling.

Louisiana is one of only a few states that have passed laws to outlaw internet gambling. The Peter Dicks case has been the only case prosecuted since the law was passed in 1997.