Lots of on-line poker stocks mentioned here.
Vegas Eyes Big Legal Online Poker Bet — Facebook Too?
By BRIAN DEAGON BRIAN DEAGON 12655 Beatrice Street
Los Angeles
CA
90066
USA
Posted 05/24/2012 06:56 PM ET
Email Print License Comment
inShare.Online gambling may soon be legal in over a dozen states, and everyone from governors, global casino giants and maybe even Facebook wants a piece of the action.
Months after shutting down major websites such as FullTilt Poker and PokerStars, the Justice Department said on Dec. 23 it would not interfere with states legalizing web-based poker and other gambling. Online sports betting would not be legal.
California, Nevada, New Jersey and about 10 other states are looking to raise revenue by legalizing and taxing online gambling .
Casino industry representatives play in a mock online tournament during the G2E gaming conference in Las Vegas on Oct. 4, 2011. Casino giants such as... View Enlarged Image
"It is going to occur. They need the revenue," said Richard Bronson, chairman of U.S. Digital Gaming, which helps states implement legal gambling.
Casino giants such as Wynn Resorts (WYNN), MGM Resorts (MGM) and Caesars Entertainment (CZR) have been laying plans and acquiring companies to ante up online.
"When you have a gold mine this big it's only a matter of time," said Brock Pierce, managing director of the Global Gaming Fund of venture capital firm Clearstone Venture Partners. "A lot of billion-dollar companies will come out of this in the coming years."
In December, Caesars acquired Israel-based mobile gaming firm Playtika for an estimated $220 million. Slot machine giant International Game Technology (IGT) in January paid $500 million for Seattle's DoubleDown Interactive, which makes casino-style games for social networking sites including Facebook (FB).
So far Las Vegas Sands (LVS) has not signaled its intentions.
Bronson expects legal gaming sites in 2013. Nevada has already passed legislation authorizing online gaming. Technical issues are still to be resolved but sites could come online as early as Q1.
California legislators have worked on bills for about a year, though it's anyone's bet when legislation might land on Gov. Jerry Brown's desk. But state tax revenue for just online poker could top $5 billion in 10 years, estimates U.S. Digital Gaming. If gaming platforms were linked to social sites like Facebook (FB) and Zynga (ZNGA), revenue could nearly double to $9 billion.
It's unclear what role federal regulators might play. Absent congressional action, legalization might happen state by state, each with their own set of rules.
Last October MGM and Boyd Gaming (BYD) announced a joint alliance with U.K.-based online poker giant Bwin.party, owner of PartyPoker, one of the biggest online poker sites in Europe.
Caesars CEO Gary Loveman, in a May 1 earnings call, said legal online gambling continues to grow in the U.K., Italy and France.
