Surges as New Jersey Opens Gaming Floodgates: London
Mover - 27th Feb 2013
digital entertainment PartyCasino.com
Resorts International (MGM) Casinos
the gaming company that has a partnership with Atlantic
Citys top-grossing casino, surged to a nine-month
high after New Jersey approved Internet betting and
Morgan Stanley said the stock may quadruple as the
U.S. market opens to online gambling.
rose as much as 15 percent to 158 pence, leading advancing
stocks on the FTSE All-Share Index. (ASX) It was up
13 percent at 11:27 a.m., boosting its market value
by about 140 million pounds ($212 million), to 1.25
billion pounds. About 4.2 million shares traded, or
35 percent more than the daily average in the past
Jersey Governor Chris Christie signed legislation
yesterday that opens the door to online gambling in
the state in an effort to help struggling casinos.
This should benefit industry leaders with proprietary
technology, such as Bwin.Party (BPTY) and 888,
analysts at Morgan Stanley led by Vaughan Lewis and
Thomas Allen wrote in a note today.
has partnership agreements with Boyd Gaming Corp.
(BYD) and MGM Resorts International (MGM), co-owners
of the Borgata Hotel Casino & Spa, the top producing
gaming facility in Atlantic City. 888 Holdings Plc
(888) has an agreement to provide technology to Caesars
Entertainment Corp. (CZR), the largest operator in
the beachfront resort.
analysts raised their price prediction on Bwin.Party
shares to 200 pence from 160 pence. 888 Holdings,
which gained as much as 8.3 percent to 162.75 pence,
may rise to 175 pence, they said.
potential opening of the U.S. market, where states
including Pennsylvania and Florida are among those
close to offering online gambling, could mean that
Bwin.Party and 888 shares will more than quadruple,
the analysts said.
USA is the largest single gambling market in the world,
and we see long-term potential worth up to 460 pence
per share for 888 and 560 pence per share for Bwin.Party,
gambling in New Jersey could be a $1.5 billion annual
business in five years, Dennis Farrell, a casino analyst
at Wells Fargo Securities wrote on Jan. 24.
efforts for a U.S. online poker bill fell short in
2012 and we expect legislation to pass on a state
by state basis, James Ainley, an analyst at
Citigroup Inc., wrote in a note today, upgrading Bwin.Party
to neutral from sell.