Online gambling one step closer in the USA

Some of the biggest movers in the UK markets this morning have been in the gaming sector on the back of a report from the US that legalized online gambling is one step closer.

Gov. Chris Christie (R-NJ) conditionally vetoed the online gambling bill that would authorize Atlantic City casinos the ability to offer New Jersey residents the ability to play poker, roulette, baccarat, blackjack, craps, big six wheel, slot machines, mini baccarat, red dog, pai gow and sic bo online. Despite the conditional veto tag, proponents of the expansion of online gambling believe this is a big victory for the industry.

According to the New Jersey legislature glossary, a conditional veto is "a veto in which the Governor objects to parts of a bill and proposes amendments that would make it acceptable. If the Legislature re-enacts the bill with the recommended amendments, it is presented again to the Governor for signature."

http://espn.go.com/poker/story/_/id/8925250/new-jersey-internet-gambling-bill-conditionally-vetoed-state-allow-online-gambling

This has had a dramatic effect on some of the UK online players this morning so far.

Bwin.Party up 20%
888 Holdings 17%
Betfair 4%
32Red 3.42%

Even behemoths William Hill and Ladbrokes are up slightly on the back of this news, the former has been positioning itself in the US over the last couple of years for the likelihood that sooner rather than later online gambling will be legalized.

While some investors will probably steer clear of these type of "sin" companies because of objections to gambling, for those that don't have a problem with the industry there is massive potential going forward, especially once countries like the US open their doors and legalize the industry. The sky is potentially the limit if the same were to happen in China, although no one should bet on that happening for some time.