Troubled internet gaming company, Betonsports, has finally succumbed to pressure from the US authorities and given up accepting bets on its site. The move follows its former British CEO, David Carruthers, being arrested in the US for – among other charges – racketeering.

The site is now displaying the message: "In light of court papers filed in the United States, the company has temporarily suspended this facility pending its ability to assess its full position. During this period no financial or wagering transactions can be executed. Further information will be posted once the company is in a position to do so."

The move follows widespread reports that the company's staff in Costa Rica and Antigua were rapidly deserting the sinking ship. It's pretty clear that US authorities had the power to seize assets from Betonsports to comply with court orders following the charges against its former top execs.

According to Greg Feehely, an analyst with Altium Securities, this decision represents the worst outcome for existing Betonsports shareholders given that its US operations account for almost 95 per cent of the company's total profits.

Significantly, the big winners from this situation will be Betonsport's rivals such as Sportingbet and Bet365, who continue to brazen out US opposition to internet gambling sites.

It is difficult to assess what damage Betonsports demolition will do to other online gambling sites, such as Party Gaming, which offer online poker rather than taking bets on horses.

The US has already been taken to the World Trade Organization by Antigua for applying one rule to US-based gambling operations and another to overseas companies.