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Legal Issues Confront Online Poker Players

After federal authorities arrested David Carruthers, former chief executive of one of the biggest online gambling companies, BetOnSports, major executives of other online gaming firms have been extra wary of a similar occurrence.

Carruthers was arrested after the U.S. government claimed that BetOnSports and its employees fraudulently took wagers translating to billions of dollars from U.S. residents via online transaction without paying excise taxes.

The US Justice Department seeks the confiscation of $4.5 billion, several cars, recreational vehicles, and cutting-edge computers from the defendants.

Carruthers, as well as several BetOnSports employees and associates, has pleaded not guilty to charges of mail and wire fraud and racketeering.

But Carruthers, who was arrested as he changed planes at Dallas-Fort Worth International Airport on July 16, has now been fired by BetOnSports, as the firm has also agreed to a judge's order to stop accepting U.S. bets.

As this developed, the U.S. House passed a bill that seeks to ban Internet gambling. The Senate, however, has yet to pass the bill rendering its future blurry at this point.

As far as the legality of online poker is concerned, the U.S. Justice Department says it is negative. Still, online poker players insist otherwise.

Asked of his opinion, founder of gambling site "Bodog.com," Calvin Ayre, said, "I've got no certainty whatsoever."

But Ayre added, "I don't believe any senior executive of any online gaming company is going to be going into the United States for the foreseeable future." "It's not just me, and I've talked to a lot of them."