Online Gambling to Get A Boost in U.S. Government
Online Gambling to Get A Boost in U.S. Government
Online gambling was controversially banned in the United States back in 2006, but as the years go its not the case anymore, and several new laws are being considered as both federal and state governments struggle to deal with the fall-out from the financial crisis. They are know seeing online gambling industry can help boost their economy.
New Jersey has started what will be a hope for the casino owners for US online gambling regulations, and stock analysts are starting to think that it can be a trend in for US to get back with the down economy. A note to clients today from Daniel Stewart analyst Michael Campbell suggested that rises in prices may be coming soon.
Just yesterday, Michael Campbell release a statement to clients and I quote:
"Bricks and mortar casinos have endured a torrid time during the recession and are seeking to explore new ways of generating income,"
"Our view is that online gambling will move ahead whether legislative change happens at Federal or State level or a combination of both.
"Poker may be the only product vertical to pass at Federal level, however we believe that individual States will legalise online casino and poker at state level, with New Jersey and California leading the way, we believe will cause a tipping point, whereby other state will follow.
"We expect to see legislative change implemented and licenses granted in 2H11 or early 2012."
Campbell believes that Playtech and Partygaming are best placed to win new contracts in this new market, and as such he rates them both as buy'. However Campbell is less optimistic for 888 Holding's prospects. The analyst was not as high on other gaming stocks outside of Playtech and PartyGaming. It has been rumored that 888 Holding's would be one of the companies to gain consideration for licenses in the US, but Campbell feels they first must meet US Department of Justice settlement agreements.
"We see a number of issues plaguing 888 chances of entering the US market," said Campbell.
"First, the outstanding settlement with the US DoJ is a stumbling block. Second, the company still awaits clearance from Nevada Gaming Commission (NGC) regarding its association with Caesers Entertainment.
"Finally, cash earn-outs relating to acquisitions will weaken the balance sheet and further prevent its ability to reach a settlement with the DoJ."
As Michael Campbell end his statement, he said that 888 is a "sell"
The US is already considered the top online gaming market in the world. Many European companies pulled out of the market after the Unlawful Internet Gambling Enforcement Act was created back in 2006. PartyGaming was one of those companies, and they have since settled a legal dispute with the US, positioning themselves to re-enter the market should regulations be put in place. Things To Consider Whilst Planning Your Goa Holidays Why you might try speed dating Get Close To Favorite Hollywood Celebrities In Los Angeles Holidays Packing For A Trip With The Kids Having Fun With Online Piano Lessons Registry Tool Review - They Won't Tell You that Top Home Business Ideas Online, What It Means For You A Guide to Ireland! Facial Hair Removers - What Are The Best Options For Women? Statistical Significance In Pay Per Click Ad Testing Plus Size Partywear For All Occasions by:Charlotte Bleasdale Web Safe Fonts for Effective Web Design Designer Handbags Exposed