The founder of online gambling company BetOnSports pleaded guilty to racketeering charges in a federal court, the US Justice Department announced. Gary Kaplan, 50, agreed to plead guilty to violating anti-fraud and tax evasion laws and will forfeit more than US$43 million (S$62 million) 'in criminal proceeds' to the United States, the department said in a statement.

He is scheduled to be sentenced on October 27 and the plea deal means he will receive a sentence of between 41 and 51 months in prison. Kaplan admitted in court at the end of last week that beginning in the mid to late-1990s, he set up business entities offshore in Aruba, Antigua and Costa Rica to provide betting to US residents through websites and toll-free telephone numbers. Some of his web servers were located in Miami, and American customers placed wagers over US telephone lines.

Kaplan’s plea was widely expected after Kaplan was left as the only executive of the sportsbook facing trial after his brother, Neil Kaplan, and sister Lori Kaplan Multz pleaded guilty to racketeering, conspiracy and the illegal transmission of bets in June, in what was expected to have been a prelude to a deal with Kaplan himself.