Gaming Stocks Up After DoJ Opinion

This story was published more than 12 years ago.

The legal opinion of the U.S. Department of Justice that online gambling does not violate The Wire Act of 1961 has sent share prices of some gambling operators higher this week.

Some of the surges in share prices since the opinion include:

Todd Ellers, a market analyst at Roth Capital Research said We view the ruling as a significant event for the U.S. gaming and lottery industry that essentially opens the door for states to consider offering internet gaming and lottery products (ex sports wagering)…"

“(W)e believe individual state lotteries and vendors like Scientific Games, Gtech , and Intralot will be the first to benefit from selling virtual lottery tickets online. In addition, casino operators with strong brands would also benefit from operating virtual casinos if authorized by enough states. Finally, traditional gaming suppliers like IGT, Bally Technologies, WMS Industries , Aristocrat and Konami should also benefit from providing game content and/or technology to host online casinos.”

Some state officials throughout the country has already expressed their desire to launch online options as soon as possible. Massachusetts State Treasurer Steven Grossman said that he will be investigating all online options that may be available to his state.

Illinois officials have also been quick to jump in reaction to the news, with Illinois Lottery Superintendent Michael Jones saying "This is a perfect ... progression for any lottery because it's adapting to new consumer buying habits and new technologies,"

Illinois Senate President John Cullerton concurred, saying "The idea is to have the lottery function like a modern business using modern technology. In that regard, it's great to have the federal government's OK on this, and we now look forward to seeing some results."