Gaming stocks soar post online gaming legalization in New Jersey
March 1, 2013
New
Jersey Gov. Chris Christie’s long-anticipated signing of a bill authorizing
online gambling in the state has spurred an upsurge of interest in gaming stocks
of companies tied to Atlantic City.
According
to Bloomberg, Boyd Gaming Corp., co-owner of the Borgata Hotel Casino
& Spa with MGM Resorts International, saw its
stock price gain 3.9 percent to $6.75 in the days following the announcement,
which took place earlier this week. MGM Resorts added 2.8 percent and Caesars Entertainment Corp., Atlantic City’s largest
operator, advanced 3 percent.
Suppliers
of online gaming solution and content also fared well. London-traded online
gambling company Bwin.Party, currently in a partnership agreement with Boyd and
MGM Resorts, added 8.9 percent to its share price. 888 Holdings Plc., which has
an accord with Caesars, climbed 4.3 percent. Zynga Inc.,
the biggest maker of online social games, jumped 5.1 percent.
The
New Jersey online gambling bill clears to way for Atlantic City gaming
operators to offer Web-based wagering on traditional casino games such as of
blackjack and slots. Online gamers must be physically present in the state in
order to play. The state projects online gaming will quickly become a $1.2
billion business, generating yearly tax revenue of $180 million for New Jersey.
State
officials hope to have online gaming up and operating in New Jersey by FY2014.
Executives for Caesars Entertainment hope to have online poker play up and
operating within the next 18 months.
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