Betex, the Asia-focused lottery and gaming company, said this afternoon that two of its senior staff at its Bejing operation have been detained while a third is being sought by the Chinese authorities in the province of Jilin.
In a statement to the London Stock Exchange, the company said it believes that the alleged illegal conduct by these individuals "does not call into question the legality of the company's software product, or the conduct of the company."
The company also said it is working with its legal advisers to obtain information regarding the status of the investigation and is assisting authorities wherever possible.
"While the investigation is ongoing the company has voluntarily imposed a nationwide suspension of sales of [its] software product," the statement reads.
Betex has also said that, owing to the uncertainty surrounding the situation, it has requested a temporary suspension of its shares on the AIM "pending clarification of the situation."
The Financial Times reports that the company has also postponed publishing its 2006 results by more than two weeks, citing a lack of resources in China ahead of a public holiday.
IGN will continue to monitor the situation.