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WTO Dismissal Motion Rejected in BetonSports Case


Magistrate Judge Mary Ann L. Medler, of Federal District Court in St. Louis, Mo., on Friday made a long-awaited decision in the case against BetonSports and denied a motion to dismiss the case based on the United States' violation of the General Agreement on Trade in Services, a World Trade Organization treaty.

Filed initially in January 2007 by nine of 11 defendants, including David Carruthers, the motion sought to dismiss the entire indictment based on the outcome of the five-year dispute Antigua and Barbuda fought against the United States' prohibitive gambling laws.

After several decisions and appeals, a World Trade Organization panel ruled that American laws against Internet gambling violated international trade laws and ordered the United States to bring its laws into compliance.

The defendants argued that based on these rulings, their prosecution was also a violation of the treaty.

Judge Medler, however, ruled against the defendants' request on grounds that the General Agreement on Trade in Services does not create or guarantee individual rights and does not directly impact domestic law.

The defendants have 11 days to file a response to Ms. Medler's recommendation. But ultimately, the final decision lies with District Judge Carol E. Jackson.

Gary S. Kaplan, the founder of BetonSports who was captured in March of 2007, and Penelope Tucker, a former employee of the company, filed the same motion in August 2007.
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