Gambling Companies’ Stocks Soar in Recent Months
An interesting trend has been emerging in the stock market. Ever since the election of Democrat President, Barack Obama in November 2008, online gambling companies have seen their stock prices soar, in some cases even doubling. This is of course good news to shareholders of those companies that were badly affected by the UIGEA.
|Leisure & Gaming||+125%||Nov 04, 2008 – May 14, 2009|
|888 Holdings||+33%||Nov 04, 2008 – May 14, 2009|
|PartyGaming||+107%||Nov 04, 2008 – May 14, 2009|
|Sportingbet||+126%||Nov 04, 2008 – May 14, 2009|
|Wynn Resorts||+217%||Mar, 09 2009 – May 14, 2009|
|MGM||+573%||Mar, 06 2009 – May 12, 2009|
|Las Vegas Sands||+374%||Mar, 09 2009 – May 14, 2009|
Leisure and Gaming (LON:LNG): 125% increase since November 4th 2008
888 (LON:888) owns such brands as Pacific Poker and Littlewoods. It has had a 30% valuation since last November
Stock prices for online gambling companies have not yet reached pre-UIGEA values, but anyone who invested in PartyGaming (LON:PRTY) back in November is now looking at a 100% increase in the value of its shares since November of last year
Sportingbet (LON:SBT) owns Paradise Poker, their stock has been flying high for the past months.
But where the story gets interesting, is when you start looking at land based casino companies, such as the Wynn or MGM. Their stock prices have seen a huge increase in recent weeks, no doubt under much speculation that they might be entering the online market once the UIGEA is repealed.
Harrah’s Entertainment for one has been spending over $400,000 in the first quarter of 2009 in lobbying for Barney Frank’s Internet Gambling Regulation Consumer Protection and Enforcement Act.
Wynn Resorts (NASDAQ:WYNN): 217%
MGM Mirage (NYSE:MGM): 573%
At an increase of 374% since March, the Las Vegas Sands (NYSE:LVS) would have been a great investment
In a bleak economic environment, it is interesting to see how well Gaming companies, both land-based and online perform in the markets.
Bloomberg has an interesting segment on this