Us authorities are trying to crackdown on online gambling

Peter Dicks, 64, must now return to the US for a further hearing in New York on 28 September.

The decision came hours after Mr Dicks quit his post as chairman of the online gambling firm.

Mr Dicks was held in New York last week under a warrant issued by state authorities in Louisiana accusing him of "gambling by computer".

When he returns to the US later this month, the New York court will consider a motion to extradite him to Louisiana.

His arrest on 7 September led to the suspension of Sportingbet's shares and sparked a steep fall in online gambling stocks such as 888 Holdings and Partygaming.

Despite the events, Sportingbet vowed to continue operating as normal, including continuing to accept bets from the US.

Crackdown

Mr Dicks arrest was seen as the latest in a string of US moves designed to crackdown on internet gambling.

In July, Betonsports' chief David Carruthers was arrested on racketeering charges at Dallas airport.

Online gaming is a $12bn a year business in the US that is expanding despite the government's opinion that it violates a law against placing interstate bets using telephone lines.