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Faces racketeering charges

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Shares in online gaming firm Betonsports have been suspended this morning to allow markets to digest news that David Carruthers, the outspoken chief executive of Betonsports, has been arrested in Dallas.

Betonsports shares fell almost 17 per cent yesterday on news of his detention. The news hit the whole sector - most online gambling companies saw their value fall yesterday - Partygaming was the FTSE100's biggest faller - dropping 5.5 per cent.

Carruthers was on his way to the company offices in Costa Rica and was detained when he was changing planes in Dallas. He was charged with racketeering conspiracy for participating in an illegal gambling enterprise.

Charges were also filed against company founder Gary Kaplan and media director Peter Wilson. In total charges have been made against Carruthers and 10 other people.

The US is also taking civil action to stop Betonsports taking any more bets and to get back the money in accounts held by US citizens.

Carruthers has been a loud-voiced supporter of online betting. He has spoken against the gambling bill currently being considered by Congress. Despite the US government's efforts, about half of all online gambling and betting revenues are believed to come from the US. ®

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