Christie Move on Internet Gambling Creates Huge Impact for Markets
New Jersey Governor Chris Christie’s move to conditionally approve legalizing Internet gambling in the state has resulted in a surge in share prices of publicly traded European i-Gaming companies.
Christie on Thursday said he would sign off on legislation provided two key amendments are made: an increase in the tax rate and a 10-year trial period stipulation. An amended version of the bill could reach his desk as early as next month with Web gambling possible by September.
Once signed into law, New Jersey would essentially usher in state-by-state legalized Web gambling, which initially will allow for its residents to place bets within the Garden State’s borders. Authors of the New Jersey measure have made no secret of the fact that they would like to enter into multi-state compacts and allow for international liquidity of poker player pools. European nations like Spain and France have already realized that state/nation inclusive poker player pools simply are not feasible.
On Friday shares of Bwin.Party rose as much as 23 percent on the news, resulting in the biggest one day jump since December 2011. 888 Holdings, which like Bwin.Party, have already partnered with US-based casino groups, witnessed a rise of 18 percent.
- Aaron Goldstein, Gambling911.com
