Shares of various online companies faced a slump after the Chief Executive Officer of BetonSports was arrested.David Carruthers, CEO of BetonSports, was detained in the US this Sunday and is facing a case for taking sports bets in the United States.
BetonSports, in a company statement, said that it has not been able to contact Carruthers but had admitted that they see a US indictment that alleges various criminal activities against multiple defendants.
Carruthers, 48, was travelling to Costa Rica when he was arrested by authorities at Dallas Airport as he was to change planes.
The said indictment is charging 11 individuals and three Florida-based companies as well as four businesses. This also includes the Costa-Rica based BetonSports.
A warrant of arrest has also been issued on Gary Stephen Kaplan, the 47 year old founder of BetonSports.
To make matters worse the US government has also filed a civil action suit that seeks to order the company to stop taking any more bets from the United States as well as return any money that is held in the betting accounts of customers based in the US.
These radical chain of events has left shares in online gambling companies reeling.
Shares in BetonSports actually slid to as much as 35 pence to 112 pence in London. The company gets a majority of its business from running a book on sports. This also includes American football. It also has internet casino games and poker. On the other hand, Sportingbet, the bookmaker that owns Paradise Poker, went down by 13 per cent to 280.75 pence.