Sportingbet's £60 million potential takeover of World Gaming was thrown into doubt today in the wake of the arrest yesterday of its chairman Peter Dicks on charges of alleged illegal internet gambling. Both the online bookmaker and its smaller gaming rival are currently considering their positions.

Sportingbet said of the World Gaming talks, signalled just four hours before news emerged of Mr Dicks' detention: "The situation yesterday is very preliminary. Appropriate discussions will take place."

It is expected that Sportingbet will put the proposed takeover on what one source described as the "back-burner for a couple of days".

World Gaming said it was "monitoring the situation". A spokesman said."All they can do is sit and watch." World Gaming generates 98 per cent of its business from the US.

This comes as brokers and advisers to Sportingbet consider whether to ask for trading in the company's shares to begin again. They were suspended at 239p yesterday, following the detention of Mr Dicks in New York and pending an initial hearing.

Sportingbet said this morning that Mr Dicks, detained yesterday at JFK Airport, had been charged with "alleged violation of Louisiana State laws relating to gambling by computer". It said the company was not named in the charges, that it would closely monitor the suitation but that it would "continue to operate as normal".

"The group itself has not received correspondence from any US authority regarding this or any related matter," it said.

But the arrest of Mr Dicks, who faces a further hearing next week, came just two months after David Carruthers, the chief executive of BetOnSports, was arrested and charged with alleged fraud and racketeering. Mr Carruthers, subsequently dismissed by BetOnSports, has maintained his innocence and is currently under effective house arrest in the US. The arrest has been seen as further evidence that American regulators are determined to clampdown on what they see as illegal online gambling.

Sportingbet and World Gaming said in a joint statement to the stock market first thing yesterday that they were in preliminary talks that could lead to an offer of 104p a share for World Gaming.

World Gaming shares closed last night at 64.5p. This morning they edged 0.5p higher to 65p.

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