Credit Suisse First Boston has bowed out of underwriting a potential $1.6bn (€1.34bn) flotation from Gibraltar-based online gaming group 888.com because it feared a potential clash with US regulators.

Wall Street banks have fought shy of underwriting online gambling firms. A senior ECM banker at a US firm said: "The US Department of Justice has said it does not approve of online gaming. When you work in a regulated business that really matters. You don't go to court with your regulator."