BetOnSports Gary Kaplan gets four years

After nearly three years in prison, former BetOnSports founder Gary Kaplan finally received his sentence in another controversial case tied to the 2006 UIGEA legislation. With the passage of the Wire Act in 2006, UK sportsbook operator Gary Kaplan and several other online gambling professionals became criminals in the eyes of the United States government.

Kaplan’s BetOnSports sportsbook processed billions of dollars in wagers leading up to the 2006 debacle. American bettors accounted for 98% of the site’s revenue, and Kaplan was reluctant to let them go. His decision to continue accepting American clients led to the company’s indictment in July of 2006. BetOnSports CEO David Carruthers was arrested shortly thereafter, but Kaplan remained at large until March of 2007.

This week, the Department of Justice gave Kaplan the maximum 51-month sentence and also demanded that he surrender $43.7 million in assets. One day later, two of Kaplan’s siblings and coworkers were also sentenced to house arrest and were ordered to surrender an additional $6 million in BetOnSports-related assets.

The harsh sentence doesn’t bode well for other UIGEA criminals awaiting trial, including Carruthers who will be sentenced in January.