USDOJ Announcement Drives up Gaming Stocks

By Maria McCoyGoogle

Following the United States Department of Justice reevaluation of the Federal Wire Act of ’61 that limits its restrictions to sports betting the stocks of online casino companies have been on the rise.  Traders are anticipating that the exclusion of online gambling from the Wire Act’s restrictions signals the emergence of an online gambling industry in America and have bought accordingly.  Many British firms have begun working towards partnerships with their American counterparts in order to best take advantage of the emergent market.  Industry leaders are hoping that in the aftermath of the USDOJ’s decision Barak Obama will act to solidify a legal framework that will facilitate a proper local online casino industry.

Many of the leading casino companies have seen very positive movement in the markets.  888 Holdings, Digital Entertainment, William Hill, and Ladbrokes all saw significant growth in the markets following the news.

Assuming that the recent decision is the harbinger of legal USA online casinos then there are two companies that stand to profit from the large flow of new players to the online casinos.  PartyGaming and 888 are both equipped to absorb a massive inflow of new players to their systems; this fact gives them a definitive edge over the competition. 

At Panmure Gordon, a leading investment banking firm, analyst Simon French gave top online casino company 888 Holdings a “buy” recommendation.  He explained that 888 is advantageously positioned to take advantage of the emerging U.S. market.  French mentioned as well that 888 is the only foreign firm to take advantage of Nevada’s new online gaming local licensing legislation.


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