Online gaming shares peaked and then dived today over a report about BETonSPORTS, which it denied, that it had reached a deal with US prosecutors on charges against the company and its chief executive.
Shares in industry leaders PartyGaming, Sportingbet and 888 gained and then lost more than $986.5 million of combined value after a report on www.theonlinewire.com said BETonSPORTS could be trading again by the end of the week.
"Neither the company nor lawyers acting on its behalf have reached any such agreement nor are they in negotiations with any other party to these proceedings," BETonSPORTS said in a statement.
Chief Executive David Carruthers is being held in Texas after being arrested on Sunday as he waited for a connecting flight to Costa Rica. Investors feared it was the start of a wider crackdown on the $12 billion-a-year online gambling industry.
But today's report that BETonSPORTS might be allowed to trade again if it parted company with Mr Carruthers suggested the issues were company-specific and sparked a rally across the rest of the sector