Online Gambling Bust

Bwin Stock Rises On Strength Of US Online Gambling Bust

Bwin.Party Digital Entertainment had the same opportunity that PokerStars and Full Tilt Poker enjoyed. The companies all had to make a choice whether or not to flirt with US laws regarding online gambling, and accept US online poker players.

PokerStars and Full Tilt made the decision to take that risk, while Bwin stayed out of the US market following the creation of the Unlawful Internet Gambling Enforcement Act in 2006. The gamble to forego years of billion dollar revenue has apparently paid off for Bwin.

Monday morning, trading began on the London Stock Exchange for the first time since the US government issued an indictment against executives of PokerStars and Full Tilt, and the results were great for Bwin. The company saw their stock rise thirty percent on the strength of the future possibilities of the online gaming industry.

Friday’s arrests by the US government are widely seen as a last step towards online gambling regulations in the country. Analysts believe that the US had to first clean up the industry by punishing those in violation of the current law before regulating the industry.

Bwin and other companies who stayed out of the US market for the past five years, are now in a position to partner with US land-based gaming companies. PokerStars had a deal in place with Wynn Resorts, but Steve Wynn terminated the deal after the arrests on Friday.

That leaves Wynn in search of a new partnership opportunity, and that is where companies such as Bwin could benefit from their abstinence in accepting US customers.

On Monday, Bwin stock led the way for foreign gaming company stocks. 888 Holdings also had a big day on the market, jumping almost twenty percent. Playtech was up 7.5%.

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