Online gambling firm stops taking US bets after chief's arrest

A UK company hit by racketeering charges in the United States said today it had met demands to stop taking bets from its US-facing website.

BetonSports has complied with a temporary restraining order, which was filed by a US district judge earlier this week ahead of a full civil hearing.

Prosecutors in the US want the company to stop taking US sports bets and to return money held in online accounts.

The company’s chief executive David Carruthers and 10 other people, including BetonSports founder Gary Kaplan, have been charged on various counts of “racketeering, conspiracy and fraud”.

BetonSports, which relies on the US for around 80% of its revenues, said its other operations were unaffected by the temporary closure move today.

In a message on the BetonSports.com website, it said: “In light of court papers filed in the United States, the company has temporarily suspended this facility pending its ability to assess its full position.

“During this period no financial or wagering transactions can be executed. Further information will be posted once the company is in a position to do so.”

Shares in BetonSports were suspended on Tuesday following news of the charges in Missouri.

Dealings in other gaming companies remained volatile today, with Party Poker owner PartyGaming among the most heavily traded stocks of the session.

Even though the case against BetonSports relates to laws against sports betting over the internet, investors in casino operators fear that US authorities will begin a wider crackdown on the online gaming industry.

PartyGaming shares fell 17% last night and were initially off 4% this morning before recovering to stand 2% higher today. Among rivals, 888 Holdings recovered by 2%, while Sportingbet held firm with a drop of 1% after diving 35% yesterday.

Further developments in the case are expected on Friday when Mr Carruthers, who was arrested at Dallas Fort Worth airport en route to his company’s base in Costa Rica, attends a bail hearing.

US authorities have called for the extradition of all parties to St Louis for prosecution.