Ladbrokes was today facing its second major takeover blow this year after reports said a potential deal for Sportingbet may fold.

The high street bookie is said to be wavering over the acquisition because of concerns about the legacy risks attached to Sportingbet’s Turkish operation.

Even though Sportingbet is on the brink of selling the business in Turkey, where online gambling is banned, it's reported that Ladbrokes’ lawyers remain concerned about any regulatory hangover from the site.

Having failed to conclude a deal with another online gambling group, 888, earlier in the year, management are under pressure to seal a deal this time.

The bookie first made an approach to Sportingbet in June, and under takeover rules has until October 17 to make a firm offer or else walk away.

A deal would boost its presence in faster growing areas such as "in-play", or live betting during a sports match, an area where Sportingbet specialises.

It is thought that Ladbrokes has been prepared to offer 70p a share or more for Sportingbet, valuing the firm in excess of £460m.

With Turkish companies banned from providing online betting since February 2007, Sportingbet’s operations in the country are run from the Channel Islands.

Ladbrokes is due to issue a trading update on Thursday.