DOJ Announcement Led to Rise in Stocks of Gambling Firms

A few days ago, the US Department of Justice (DOJ) clarified its stance on the Wire Act. DOJ stated that the Wire Act holds good only for sports betting activities. Online casino and poker does not violate the law. The announcement led to the share prices of well-known gambling firms rising significantly. It has been made clear through DOJ’s announcement that US states can adopt online gambling regulations.

Rise in Share Prizes Recorded for both Land-Based and Online Gambling Firms

Rise in share prizes has been recorded for both land-based and online gambling firms. Companies operating in the US as well as the European nations saw a rise in their stocks. Share price of Scientific Games Corp rose by 15.4%. Playtech Ltd, a leading software provider is affiliated to Scientific Games. Playtech’s stocks rose by 14.9%. Share price of MGM Resorts increased by 4.6%. bwin.party has a tie-up with MGM Resorts. bwin.party’s share price rose by 22.8%.

888 Holdings has a deal with Caesars Entertainment. Its shares rose by 9.0%. William Hill’s stocks increased by 3.2%. The company acquired quite a few firms last year. Brandywine Bookmaking is one among them. It is a land-based operator of sports betting in Nevada. Other firms whose stocks went up after the DOJ announcement are Ladbrokes, Bally Technologies, International Game Technology and Wynn Resorts.

Capital Research’s analyst Todd Ellers stated that firms operating lotteries in various US states are likely to benefit the most due the change in DOJ’s position. Some of these firms are Gtech, Intralot and Scientific Games. The second group of companies to benefit the most is casino sites having a strong reputation in the market. Software providers will also benefit from the latest DOJ announcement. Some of these are WMS Industries, Bally Technologies, IGT and Aristocrat.

Several US States Intend to offer Online Gambling Products

Several US states have confirmed their intention to start operating online casinos and poker rooms. Nevada has already adopted regulations for online gambling. California will start with online lottery. Online poker and casino gambling will be regulated later.

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