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 trading resumes.

EngagingChina last wrote about Betex here. More in this Times story.