CGAQ: Small Online Gambling Stocks Starting to Run (ELRA, ATIG, CGAQ)
Last Updated: March 22, 2011 - 12:44pm EST
(NEW YORK)--With new bills to legalize, and tax online gambling now in the US Congress, and a number of state chambers, investors may want to look at the small cap online gaming sector as a potential way to play this news.
Based on the charts of the stocks listed below the run into these pending votes may have just begun.
Elray Resources (OTC:ELRA), now operating under the Elray Gaming name, operates online gaming platforms on the international stage. The Company recently conducted a reverse merger and has been in strict compliance with current US gaming laws, thus should be well positioned if any bills pass to legalize online gambling in the United States. www.elraygaming.com
ELRA's stock was last traded at around $0.025 per share, and is currently attempting to break through its 200-day moving average. (see chart)
Caribbean Casino and Gaming Corp. (PINK: CGAQ) s the owner and operator of the Sosua Bay Grand Casino, Afterone Disco, the Luperon Bay and Galactica Disco. The corporation is focused on becoming a leader in the Caribbean for gaming and entertainment, including live betting from cameras located above tables within the Sosua Bay Grand Casino.
CGAQ's stock was last traded at around $0.013 per share, and just broke through its 50-day moving average. (see chart)
ATLANTIS INTERNET GR (PINK: ATIG) is currently in negotiations with Tribes from coast to coast who are seeking to take advantage of the UIGEA exemption for Internet Gaming on Indian Lands. With its headquarters located in Las Vegas, ATIG is also strategically located to supply the ever changing gaming market with server based technologies in both the Commercial and the Indian Casino markets.
ATIG's stock was last traded at around $0.0011 per share, and is currently breaking through its 50-day moving average as well. (see chart)
Federal Vote by Late April
A bipartisan bill now under way in Congress would allow Internet poker, blackjack and other games based outside the US, now illegal in the states, to open shops in the US and pay taxes. The bill proposal, sponsored by Rep. Barney Frank (D-Mass) and Rep. John Campbell (R-Calif.), with Senate support by Sen. Harry Reid (D-Nev.), is due in April, said analyst Roger Gros, publisher of Global Gaming Business.
State Bills in Legislation Currently
There are a number of states currently considering the legalization of online gaming, and these states include Iowa (SSB 1165), Florida (SB812 - Internet Poker), California (SB40 - Internet Poker and SB 45 - Internet Gambling), Nevada (AB 258), and New Jersey (S490). With states struggling for increased tax revenues to off-set state budget deficits, the prospects of online gambling becoming legal has never been more of a real possibility.
As these current bills to legalize online gaming come to votes in the coming months it would be expected to see these stocks to continue to climb as investors 'place their bets' on these pending legislations. Due to the low amount of publicly traded small cap plays, online gaming stocks like ELRA, CGAQ, and ATIG may be well positioned to garner even more retail interest going into the spring legislation process.
www.wallstreetnewscast.com/news/2011/march/trader3149.html
The Pixies: Levitate Me
from Come on Pilgrim
AI
