US authorities have detained a second internet gaming executive, adding to fears that it is cracking down on the lucrative industry and sparking share price falls that wiped over $1.5 billion off the market value of the sector.
Online bookmaker Sportingbet said its chairman, Peter Dicks, had been detained by US authorities, mirroring the detention in July of another online gaming CEO on racketeering charges.
Shares in industry leader PartyGaming plunged as much as 19% before closing 9.8% lower at 105.75p in London.
Dicks was arrested in New York late on Wednesday at JFK Airport on a warrant from Louisiana, said Pasquale DiFulco, a spokesman for the Port Authority of New York and New Jersey. The nature of the charges was not revealed.
Sportingbet said it had sought an immediate temporary suspension of its shares pending clarification of the situation.
