Casino shares rise after favourable sports betting ruling
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The shares of casino operators rose significantly after the US Supreme Court issued a verdict in favour of New Jersey and removed the federal ban on sports betting.
The share price of Caesars Entertainment Corp, the largest operator of the USA, saw a rise of 9 per cent, while that of Scientific Games, which processes bets for sports book operators, increased by 14.2 per cent.
The share price of MGM Resorts International, the largest owner of casinos in Las Vegas, the only state in the US that could offer legal single-game wagering before the ruling, was up by 3.5 per cent.
Last week, MGM President William Hornbuckle said that they were expecting that in the next two to three years, 10 to 12 states would be ready to fully operate sports betting. “We will be there. We will participate in it. We bring technology. We bring knowledge. And frankly, in this space, we bring trust.”
The company released a statement after the ruling and said: “MGM Resorts International applauds the Court’s decision to allow states the opportunity to protect consumers and benefit the public by regulating and taxing sports betting. We look forward to working with legislators and policymakers to achieve a regulatory outcome that benefits states and consumers alike while ensuring the integrity of sports.”
“Having spent decades building trust with regulators, successfully operating sports books in Nevada, and hosting the world’s leading sporting events, MGM Resorts International is extremely well positioned for a post-PASPA environment.”
However, some of the biggest share hikes were seen among non-US betting parlour and online operators. William Hill, the largest operator from the UK and the company with the biggest number of sports books in Nevada, saw its shares increase 11 per cent. Canadian Stars Group, which operates the PokerStars brand, also saw a 14.3 per cent gain.
Joe Asher, CEO of William Hill US, said that New Jersey’s Monmouth Park is expected to open first, as the company has been building a bar next to the horse-racing track in anticipation of the ruling tor the past five years. “We’re going to get ready to open for business at Monmouth Park as soon as responsibly possible,” he said.
Americans illegally bet at least US$150 billion annually on sports empowered by the Professional and Amateur Sports Protection Act of 1992 (PASPA), the failed federal prohibition on single-game sports betting that was overruled yesterday by the Supreme Court.
Source: European Gaming News