DVO
07-12-2006, 12:58 PM
It also seems that Bush's reservations about the bill involve the underage gambling issue ( i.e. that it's not addressed).
If you believe in markets this is good news. They tend to get these things right.
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London gets a lift from online-gaming stocks
By Sarah Turner, MarketWatch
Last Update: 12:12 PM ET Jul 12, 2006
LONDON (MarketWatch) -- Gambling shares rose Wednesday as investors and analysts weighed the odds of the current U.S. attempt to ban online gaming becoming law in the near future.
PartyGaming (PRTY) rallied 4.3% in a generally higher London market, while Sportingbet (SBT) rose 2.7%.
The price gains for online gaming shares came in the wake of the House of Representatives passing a bill late Tuesday that would attempt to kill off Internet gambling in the U.S. by cutting off its money supply.
However, the fate of the bill is uncertain as it will now proceed to the Senate, where only a short amount of time is left in the session before the lawmakers break for the campaign season ahead of the November elections.
The Bush administration backs the bill but said in an official statement of policy that it had some unspecified "concerns."
This theme was picked up by Morgan Stanley analysts, who noted that the bill allows certain forms of online gaming such as horse racing, lotteries and fantasy sports but does not contain a provision that would prevent underage users from playing.
"We think that the bill contains a number of provisions that we view as problematic, and think that it is very unlikely to pass the Senate," said these analysts.
They advised clients to use any share price weakness as a buying opportunity.
If you believe in markets this is good news. They tend to get these things right.
------------------------------
London gets a lift from online-gaming stocks
By Sarah Turner, MarketWatch
Last Update: 12:12 PM ET Jul 12, 2006
LONDON (MarketWatch) -- Gambling shares rose Wednesday as investors and analysts weighed the odds of the current U.S. attempt to ban online gaming becoming law in the near future.
PartyGaming (PRTY) rallied 4.3% in a generally higher London market, while Sportingbet (SBT) rose 2.7%.
The price gains for online gaming shares came in the wake of the House of Representatives passing a bill late Tuesday that would attempt to kill off Internet gambling in the U.S. by cutting off its money supply.
However, the fate of the bill is uncertain as it will now proceed to the Senate, where only a short amount of time is left in the session before the lawmakers break for the campaign season ahead of the November elections.
The Bush administration backs the bill but said in an official statement of policy that it had some unspecified "concerns."
This theme was picked up by Morgan Stanley analysts, who noted that the bill allows certain forms of online gaming such as horse racing, lotteries and fantasy sports but does not contain a provision that would prevent underage users from playing.
"We think that the bill contains a number of provisions that we view as problematic, and think that it is very unlikely to pass the Senate," said these analysts.
They advised clients to use any share price weakness as a buying opportunity.