Investing in China's gambling industry is not for the faint-hearted as investors in Betex, a UK-listed supplier of software for China's sports lottery, have just discovered.
Its shares have been suspended, at the company's request, after it
was told that two senior staff at its Beijing operation had been
detained and a further senior staff member was being sought by police
in the province of Jilin.
The Company said that it is working with its legal advisers to obtain information regarding the status of the investigation.
Betex became the first foreign investor in China's sports lottery
and has management contracts in the provinces of Hebei, Guizhou and
Guangdong. Its software allow Chinese punters to bet on European and US
sports events — as well as traditional numbers games.
The business is growing rapidly but the share price has more than
halved over the past 12 months and the uncertainty created by the
detentions is unlikely to broaden the appeal of its shares if and when