Online gaming providers, 888 Holdings, stand to benefit the most out the US Department of Justice’s pre-Christmas bombshell (that makes the Wire Act apply only to sports betting) a broker has proclaimed.
News of the DoJ’s decision, which has opened the door for US states to legalise online poker, casino and lotteries, has sent shares in 888 Holdings, as well as other online gambling providers, to rise sharply as trading resumed after the Christmas break yesterday.
The broker, who goes by the name of Panmure Gordon, upped the target price for 888 shares from 60p to 63p and kept its buy stance. Considering 888 Holdings has a commercial relationship with Caesars Entertainment, the broker said the DoJ’s decision is particularly relevant given Nevada passed online poker regulation last Thursday – with licences expected to be granted in the Spring. In addition, Gordon said the move by the DoJ would also remove the legacy legal risk from operating casino and poker websites in the US prior to October 2006.
The broker also announced that Bwin.party Digital Entertainment – who has agreements with two Las Vegas operators, Boyd Gaming and MGM Resorts – and tech supplier Playtech, too, will benefit from the DoJ’s move (or what some people are calling an early Christmas present).
Following the DoJ’s announcement, Illinois and New York, also requested if they could use the internet to sell lottery tickets in their states. The DoJ’s announcement has certainly caused a stir in the US gambling industry, but what where do you think it will ultimately lead?
