New Jersey Governor’s Online Gambling Approval Sends Gaming Stocks Soaring

The groundbreaking decision of Gov. Chris Christie of New Jersey to conditionally approve online gambling in New Jersey has sent gaming stocks soaring. While many believed that it was inevitable this latest move by Christie led to stocks of major gaming companies like Bwin.Party to rise as much as 23% while 888 Holdings gained an impressive 18%. With all the ups and downs of 2012 many believe that New Jersey is just the first with other states to follow who are looking to cash in on online gambling.

Chrsitie’s support for online gambling is conditional and includes a 10-year trial period which would see how internet gambling affects land-based casinos in Atlantic City. Other stipulations include limits on bets and tax increases.

While the bill will be sent back to include these revisions, analysts believe that the bill could be approved in the Assembly and Senate as early as March with online gambling beginning around September.

Many Gambling companies like Caesars Entertainment Corp. and 888 had already entered into partnerships in anticipation of online gambling becoming legalized. In fact Caesars saw a 19% stock rise due to the news.

While we have reported extensively on New Jersey been a front leader in the battle to legalize online gambling, it has never been so clear that this is the tip of the iceberg as few states could turn down the tax revenues generated from internet gambling. While initially online gambling will only be permitted within state borders, many are looking to put in place measures that would allow multi-state agreements and even international options.

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