Internet gambling shares plummeted in Europe yesterday after the head of a second British gaming company was arrested as he visited the United States.

Peter Dicks, non-executive chairman of Sportingbet, was detained at JFK airport in New York while on a trip to the country.

His arrest comes little more than two months after the detention of David Carruthers, chief executive of BetonSports.

The targeting of a second company suggests the US authorities are determined to clamp down on internet gambling on many sports - illegal in the US.

Sportingbet shares were suspended "pending clarification of the situation".

Mr Carruthers, former chief executive of BetonSports, the troubled online gambling company, was released on $1 million (€785,400) bail last month after spending four weeks in US jails. He was arrested while on a stopover in Texas on a flight between London and Costa Rica, where BetonSports is based.

Mr Carruthers was charged with racketeering, fraud and tax evasion.

It was not immediately clear what the charges would be made against Mr Dicks, who was detained on a warrant from the state of Louisiana.

Shares in Sportingbet and rival groups in the sector, which derive much of their income from the US, have been affected by the US crackdown. PartyGaming shares fell almost 10 per cent yesterday in the wake of the announcement.

News of Mr Dicks's detention came shortly after Sportingbet confirmed it was in talks with World Gaming about a takeover that would value the gaming software provider at about £56.6 million (€83.3 million).

Shares in Sportingbet fell about 2.5 per cent to 238p in morning trading before they were suspended.

World Gaming's shares were unchanged at 92p before sliding 18 per cent on the news of Mr Dicks's detention.