US authorities yesterday detained two founders of Neteller, one of the leading payment processors for online gamblers, intensifying concern about the US stance on online gaming.
Stephen Lawrence and John Lefebvre, who are Canadian, were detained while travelling separately in the US.
The US attorney's office in the southern district of New York said two arrests had been made on charges of "laundering billions of dollars of internet gambling proceeds".
The two men set up Neteller in 1999 and remain its biggest individual shareholders. But the money transfer company said neither had any current involvement other than as investors.
Mr Lawrence, a former chief executive and chairman, stepped down from the board in October. Mr Lefebvre left the board in December 2005.
Simon Holliday, a partner at Global Betting and Gaming Consultants, said: "If the arrests are linked to Lawrence and Lefebvre's employment at Neteller, it could mean anyone involved in the online gambling industry faces the possibility of arrest if they travel to the US."
Neteller, which has its headquarters in the Isle of Man and is listed on Aim, had "not received any communication or correspondence from any US authority regarding this or any related matter".
These are the latest in a series of arrests of business people involved in online gaming.
David Carruthers, former chief executive of BetonSports and a prominent advocate of regulated online gambling, was arrested in Texas last July on conspiracy, fraud and racketeering charges.
He is effectively under house arrest. Peter Dicks, former chairman of Sportingbet, was arrested in New York on a warrant filed in Louisiana but released and allowed to return to London.
Last year the US Congress passed a bill to stop US residents using gaming sites. Neteller derived 70 per cent of its revenues from the US.
Neteller said it would comply with the law's provisions - parts of which are being clarified - "to protect its shareholders, business partners, employees and reputation". It said its non-US business would continue as normal.
Trading in Neteller shares was suspended after the arrests.
On Monday shares in Neteller, which raised £35m ($68m) when it listed at 200p in April 2004, closed down 12¼p or 7 per cent at 163¾p.
Meanwhile, the Malaysian casino group Genting is set to announce that it is forging closer ties with Stanley Ho, the Macao gaming tycoon, and his Sociedade de Jogos de Macau.
In the deal, expected to be unveiled this week, Mr Ho would buy a 10 per cent stake in Star Cruises, Genting's Hong Kong-listed affiliate, for nearly $300 million.
In return, Genting would secure rights from Mr Ho to build and operate a casino in Macao.
The move is part of Star Cruises' and Genting's plans to raise funds to develop a $3.4 billion resort on Singapore's Sentosa island.
Star Cruises and SJM declined to comment on the pending deal but company sources said an announcement could be made as early as today.
Shares in Star Cruises were suspended from trading last Thursday pending an announcement. - (Financial Times service)
