Gaming stocks soar post online gaming legalization in New Jersey
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.