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BetOnSports founder gets 51-month sentence
ST. LOUIS POST-DISPATCH
ST. LOUIS -- The founder of one of the world's most successful online gambling companies was sentenced Monday to 51 months in federal prison. Gary Kaplan, 50, founder of BetOnSports, likely will serve a little more than one year behind bars. He will receive credit for the 31 months he has spent in jail since his 2007 arrest. A few more months may be shaved off for good behavior, lawyers said. Kaplan pleaded guilty in August to charges of racketeering conspiracy, violations of the wire wager act and conspiracy. U.S. District Judge Carol Jackson gave Kaplan the maximum sentence allowable under the terms of a pre-arranged plea agreement. Prosecutors also dropped 14 other charges under the agreement. Jackson said Kaplan intentionally ignored U.S. laws with his gambling company, and deserved the sentence despite his remorseful statement in front of a crowded courtroom in downtown St. Louis. "He made a gamble, " Jackson said. " ... and this is the payoff." Jackson also cited Kaplan's two felonies from years ago -- for bookmaking and forgery -- and his efforts to avoid arrest as factors in her decision to impose the sentence. "Regardless of how people feel about sports betting or wagering, these are criminal laws that have to be respected," Jackson said. " ... It's not up to us as individuals to pick and choose which laws we are going to follow and which one's we're not." Kaplan also forfeits $43.65 million earned through the gambling enterprise. An additional $7 million from two accounts of his brother and sister also will be forfeited. The money will be turned over to the U.S. government. Gamblers who lost money when BetOnSports collapsed are not eligible for restitution, although some may recover a small portion of their money as part of the liquidation being handled in Antigua. Kaplan still has "tens of millions" of dollars in Swiss bank accounts, assistant U.S. Attorney Steven Holtshouser said. "We are serious about enforcing anti-sports betting laws, even when carried out by off-shore entities, and especially when carried out by off-shore entities operated by U.S. citizens," Holtshouser said. Kaplan, dressed in an orange jump suit with his legs shackled, apologized for the pain and embarrassment he has caused his family and said he has "paid a monumental price" for his actions. One of his lawyers, Art Margulis, said the sentence was fair. Kaplan's attorneys cited his contributions while jailed to charities such as the 100 Neediest Causes to supporting clean drinking water in Costa Rica as reasons why their client should receive a short stint under house arrest. Instead, Kaplan will be headed to prison, perhaps in Marion, Ill., or Terre Haute, Ind.
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