Saturday, July 22, 2006

American DNS Providers Continue Services to UK Betting Sites

Via Netcraft.

The U.S. crackdown on online gambling company BetOnSports appears unlikely to spark dramatic shifts in the geography of the online gambling industry in the short term. American DNS service providers and DDoS mitigation companies are continuing to provide services to UK betting sites, while initial fears about the British government's extradition policy have eased somewhat. But some international betting services are barring U.S. residents, and up-and-coming offshore "data havens" are likely to be of growing interest to UK-based gambling operations.

It will take time for the broader implications of the U.S. charges against BetonSports.com to become clear. BetonSports.com CEO David Carruthers was arrested Sunday in Dallas/Fort Worth airport as he changed flights on his way from London to Costa Rica (where BetOnSports is based) and charged with conspiracy, fraud and racketeering. Also named in the indictment were Florida companies that provided marketing services to BetonSports. While those charges dealt specifically with the transport of gambling equipment to offshore sites, the inclusion of the companies has raised concern among U.S. companies providing services to international gambling sites.

Neustar Ultra Services (formerly UltraDNS), provides DNS management services to BetonSports.com and several other UK gambling sites, and said Friday that the U.S. action against the company has not changed its practice. "We will continue to support our partners, and will do so according to U.S. government law, however it shapes up," said a spokesman for the company, which is based in Sterling, Va. "We support plenty of gambling sites, but also many customers in other industries as well." Prolexic, a Florida provider specializing in mitigation of DDoS attacks, also counts offshore gambling web sites as customers. Gambling sites are frequest targets of attacks from DDoS blackmail schemes.

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