Stocks may benefit from regulated igaming
There’s certainly a lot more at stake from potential regulated online gambling in the United States than meets the eye. In addition to sustaining industry operations in the world’s biggest Internet gambling market, some businesses are positioned to prosper should new laws and regulations be put in place by lawmakers.
Take the recent development in Nevada, where gambling giants Ceasars Entertainment and PokerStars.com have found themselves on opposite sides of new legislation seeking to regulate gambling there.
Obviously, online gambling is big business, and regulation (and licensing and taxation) would almost certainly make it even bigger. Besides those two already huge brands, Wall Street Newscast’s Tom Bustamante has outlined a few other companies that could benefit not only from new laws, but from the very introduction of the new bill.
Inspired by a new federal bill to regulate online gambling recently introduced into Congress by Congressman Barney Frank and a handful of others, Bustamante’s article steps back and takes a larger, Wall Street-influenced perspective on matters.
It points to obvious beneficiaries like casino companies Las Vegas Sands and Wynn Casinos. But also to potentially benefit are “Elray Resources (OTC:ELRA), an operator of online gaming platforms on the international stage, and PokerTek, Inc (NASDAQ:PTEK),” per Bustamante.
“For stocks such as Elray Gaming (ELRA) the prospect of online gaming becoming legal on either the state or federal level could have a dramatic impact not only on the company’s business, but investor interest in its stock,” Bustamante continues. “ELRA has been a strict adherer of current online gaming rules and regulation, and thus should be positioned well to establish a US presence if and when this new legislation comes up for consideration.”
What other U.S. stocks do you think could potentially skyrocket in the aftermath of a newly regulated U.S. online gambling market?