David Carruthers yesterday learnt he had been fired by BetonSports as he waited in a US jail cell for a bail hearing to take place.

The online gambling company terminated the contract of its chief executive, who is facing charges of racketeering, conspiracy and fraud in a case that has wiped millions of pounds from the values of other companies in the industry on fears of a broader crackdown against gambling companies.

BetonSports is believed to have made the move to prevent Mr Carruthers from speaking to US authorities as a company representative. It is also firing its only indicted director in an attempt to extricate itself from a controversy that has shut down 85 per cent of its business.

Unless it resumes taking bets from US punters by the start of the American football season in September, the company is understood to be at risk of collapse.

The decision to fire Mr Carruthers was described by Tony Evans, his lawyer, as "unfortunate". "I'm sure [ it] has been made for business purposes," he said.

The former chief executive is expected to transfer from FortWorth to St Louis this week for a bail hearing.