The knock-on effect of the US Department of Justice’, more relaxed stance regarding online gambling, has seen global online gambling businesses’ share prices soar. The chips are quite literally down, and while the DoJ has declared that only online sports betting is illegal, hopes are being raised that they mean what they say. This is the only online gambling news in the news currently, and although much of what we are seeing is only conjecture, the hitch in share prices seems to be saying it all.
According to Panmure Gordon; the new DoJ interpretation of the Wire Act and UIGEA ~ “Potentially it opens the way for gambling services to be provided from offshore.” And this is massively significant.
The apparent change of heart makes the online gaming group – 888.com one of the biggest beneficiaries. As US law regarding online gambling now appears to only apply to sports betting, this means lottery ticket sales, online poker, bingo and casino games operators may perhaps be able to ply their trade to what is deemed to be one of the biggest gambling marketplaces in the world. 888 Holdings also recently saw fit to enter into a commercial relationship with Caesars Entertainment, and this stands them in even better stead to do US business.
This upshot of this is that share prices for 888 have been flagged as a ‘buy’ and upped from 60 – 63p on the London Stock Exchange. But they are not the only online gambling group seeing their shares moving sharply in an upward trend. Bwin.Party Digital Entertainment jumped 23% to 160p; they have JV agreements in place with two Las Vegas live casino operators – MGM Resorts and Boyd Gaming. Playtech traded up sharply and William Hill perked up too.
Should the new opinion from the DoJ open the doors to online gambling fully in the USA, many of the big operators are ready to hit the ground running. Nevada is already looking at license applications for intrastate online gambling, which their State legislature has made legal. But the absolute piece de resistance would be for the Federal Government to legalize and regulate the online gambling industry on a nation-wide basis. There seems to be no good reason for this not to take place now. Although some anti-gambling (of any kind) protagonists are saying that this is a popularity pitch for President Obama, prior to next years’ presidential elections.
The DoJ decision is massively relevant at this time for the State of Nevada as their online poker regulations were passed into law last Thursday. There has been some question about the fact that the Wire Act and UIGEA could override the creation of these new laws.
We in the online gambling industry, and many players feel the same way – don’t care if it is a political popularity pitch – we care about being able to compete in this industry on a global scale. Online gambling is a mainstream industry, it is not going to go away, and the confidence shown in share prices jumping, only confirms this fact even more.