The London market dived deep into the red today after gambling stocks were rocked for the second time in two months.

The chairman of UK-based sports betting business Sportingbet was detained by authorities in the United States early today.

US government lawyers say they will continue prosecuting BetOnSports, even though the British-based internet gambling company is shutting down its operations that take bets from American customers.

Online gaming company BetonSports today said it had pulled the plug on the operations at the centre of racketeering charges in the United States.

The gaming executive being held in the United States on racketeering charges was removed as chief executive and director of his company today.

Investors received a shot in the arm today after the FTSE 100 Index followed the lead of US markets to rise by more than 100 points.

Strong performances from Vodafone and gambling stocks helped the London markets move ahead today.

The chief executive of BetOnSports PLC, a major online sports-betting operation, remained in custody today on racketeering and conspiracy charges after his lawyer asked to postpone a bail hearing.

In light of racketeering charges against the chief executive of BetonSports it should come as little surprise that key players in the online gaming industry were feeling edgy about their whereabouts this week.

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.

Canadian billionaire Calvin Ayre, founder and CEO of Internet casino Bodog.com, said yesterday that the arrest of a US online gambling executive would not threaten his industry and that his business will operate as usual.

Confidence in gaming shares was rocked today by charges laid against the operator BetonSports and its chief executive David Carruthers.

Shares in London drifted into the red today despite enthusiasm over a potential £1 billion takeover battle in the housebuilding sector.