Gaming Stocks Skyrocket as Outdated US Sports Betting Law Falls
Last updated: May 21, 2018
Last updated: May 21, 2018
Monday, May 14th could very well be described as one of the most significant days in the development of the global iGaming industry. In a landmark decision, the US Supreme Court ruled in favour of the overturning of the now 26 year old federal ban on sports betting in the US. PASPA, or the Professional and Amateur Sports Protection Act of 1992, was essentially an act designed to prohibit sports gambling under State law, as well as for other purposes.
With the federal ban on sports betting no longer in place, the upshot of the move means that individual US states can now decide for themselves whether or not to allow sports betting and online gaming within their state. They can also decide how much they allow as well as how gaming providers will be able to operate within their jurisdictions. For many US states, the lifting of the ban presents an incredible opportunity to get in the game, especially when one considers that, for the past 26 years, the state of Nevada enjoyed what could best be described as a legal monopoly on single-game betting in America.
While the effects of the death of PASPA will still be felt or quite some time, with some individual states only making moves in 2019, certain sectors experienced an immediate reaction. Stock markets can be volatile at best, with stocks often dramatically rising or falling based on world events. This phenomenon applies to gaming stocks as well, and there really could not be a more significant influence on gaming stocks than the US Supreme Court’s ruling on Monday.
Here’s how top gaming stocks looked on Tuesday:
- The Stars Group (TSG): +9.13
- Scientific Games Corp. (SGMS): +11.15
- International Game Technology PLC (IGT): +3.13
- 888 Holdings PLC (888): +16.44
- Game Account Network (GAN): +15.15
- GVC Holdings PLC (GBX): +7.24
The lifting of the ban is something that many off-shore online gaming providers have been waiting for, a chance to get a slice of the American pie. The opportunities to create new relationships, both with online platforms and brick and mortar casinos, poker and sports betting is too good to be missed.
Brick and mortar gambling establishments and chains also experienced a surge in stock prices in the wake of Monday’s ruling:
- MGM Resorts International (MGM): +1.64
- Wynn Resorts (WYNN): -2.05
- Pinnacle Entertainment (PNK): +1.88
- Las Vegas Sands Corp. (LVS): -0.83
- Penn National Gaming, Inc. (PENN): +4.68
- Gaming and Leisure Properties (GLPI): +0.32
- Caesars Entertainment Corporation (CZR): +5.46
- Boyd Gaming Corporation (BYD): +3.06
- Eldorado Resorts (ERI): +2.37
- Churchill Downs, Inc. (CHDN): +4.87
While it is still early days post-US Supreme Court ruling, these are nevertheless exciting times for the gaming industry as a whole. New partnerships and alliances are likely to be seen forming across the board and from state to state as new opportunities in both brick and mortar and digital gaming platforms are realised.