As reported by: Miami Herald
Think of Costa Rica and flashes of colorful birds, bright beaches and long hikes through the rain forest come to mind.

But several recent arrests and indictments have thrust the country into the spotlight for another, less savory reason: its cozy relationship with the online gambling industry. The industry is under fire from U.S. authorities, helping create the notion that this small Central American nation is the cybernet version of 1950s Cuba.

Earlier this month, police arrested British national Peter Dicks, a top official of Sportingbet, at JFK Airport in New York. In July, authorities picked up BetonSports CEO David Carruthers, also a British citizen, at Dallas/Fort Worth airport. Both companies operate in Costa Rica.

Ten other Betonsports employees have been arrested in the United States. All are out on bond while facing charges ranging from tax evasion and racketeering to wire fraud and illegal gambling.

Also in July, U.S. prosecutors indicted four men, two of them Costa Rican citizens, in California and arrested one of them on charges of running an illegal online gambling operation in Costa Rica.

The moves by the U.S. Justice Department have industry insiders scratching their heads and shares of online gambling companies tumbling on international stock markets.


Article By: Miami Herald