An investment view of US developments in online gambling

News on 30 Jun 2012

The respected investment publication Seeking Alpha carried an interesting article over the weekend, examining developments in online gambling in the United States and how these might impact land casino operators.

Authored by the Qineqt  Team of investment professionals, which includes former hedge fund managers, traders and analysts at top tier firms and investment professionals up to speed on the latest research, the article opines that Delaware’s success in passing an online gambling legalisation law will create a domino effect in the Middle Atlantic region, well known for its large-scale gambling and competitive nature.

The team suggests three scenarios among land companies who might capitalise on the growing momentum of online gambling:

“One, companies that provide online gaming solutions are surely going to be the winners; two, Internet gambling companies will also see their revenues surge.”

The third scenario depends on how the different land companies react to the situation, the article predicts, noting:

“One group strongly advocates this relaxation and has already shown its keenness to add this dimension to their operations. Their stocks are expected to reap the benefits after this declaration.

“However, the other group vehemently opposes Internet gambling, stating that it has led to depletion of their profits, and they think Internet gambling is illegal. Their stock prices are expected to decline or remain stagnant, unless they move toward Internet gambling.”

The article is backed by a thorough assessment and analyses of the major players involved, and makes for good reading:

http://seekingalpha.com/article/693701-how-to-play-the-legalization-of-online-gambling.

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