Gaming Stocks Soar as U.S. Define Forms of Online Gambling
December 29, 2011
Since the DoJ made it’s announcement in regards to the Federal Wire Act last week, online gaming stocks were in demand as dealers reacted to news that US regulators have finally defined and made clarity of their stance on certain forms of online gambling.
In lieu of such changes, many British companies had recently geared up their ties with the US in hopes President Barack Obama would resurrect the market.
Bwin.Party Digital Entertainment leapt 29.7 23pc to 160p and 888 Holdings, which rose 9 per cent to 39.25p.
Betfair and Sportingbet are also eyeing up a market believed to be worth $3bn to $5bn, PartyGaming and 888 are considered to own the technology needed to cope with the flood of new players that would enter their games.
Simon French, an analyst at Panmure Gordon, added: “In effect this will make casino and poker legal, where appropriate state regulations exist and lay the foundations for interstate, non-sports gambling.”
As a result, Mr French strongly reiterated his “buy” recommendation on 888 Holdings because last Thursday the state of Nevada approved regulations permitting the issuance of online poker licences.
“888 is the only UK-listed company to receive Nevada Gaming Commission suitability approval and are expected to supply software to Caesars Entertainment to operate in Nevada,” Mr French pointed out. 888 rose 3.2 to 39.2p.
Bookmakers also moved higher on the back of the positive sentiment. Ladbrokes, for example, ticked up 4.1 to 123.7p and William Hill perked up 6 to 194.7p.
Reported by Maggie B.
