Gary Kaplan, founder of the popular gambling website betonsports.com, has plead guilty to federal rackateering conspiracy and related charges. He is also forking over 43.6 million bucks. His company, founded in 1995, handles nearly $2 billion in bets every year.

Kaplan and his posse also allegedly told gamblers that its operations were legal, and told them they could withdraw funds at any time. What were they gonna say, “don’t gamble here: it’s illegal, immoral, and we probably won’t pay out if you win”?

Betonsports, which was based in Costa Rica, stopped its operating ins 2006, with its customer base having lost over $16 million. Most people know that online gambling and sports betting is illegal, yet take their chances and hope to (A) win big, and (B) actually get paid on their winnings. Yet, what do you do in the event that you attempt to make a withdrawal but never receive the funds? There won’t be much recourse, at least not in the U.S.

Hey, maybe that’s Obama’s next plan to help the country: gold for gambling-losses.

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Tags | litigation, sports betting