Shorting the Online Gaming Stocks

[Taylor Caby]

I want to put a disclaimer on here that I am by no means an expert. Just a young kid looking for some feedback on an idea.

When all of the potential online gaming bills started to pop up early this year and into the summer, I figured that if things were looking grim I would short as many online gaming stocks as possible. I underestimated how quickly the bills could be passed and for some reason thought (naively, i suppose) I would have more of a warning that such legislation was impending before it actually passed.

Now, I'm thinking back to what I should have done. I have made all of my money either through playing poker or through my business which depends heavily on online poker. Wouldn't it have made sense for me to short the online gaming stocks 12 months ago, regardless of my outlook on internet gaming in the US? This would act as a hedge and would've provide me with sizable returns should the laws have passed (as they did). If the laws didn't pass, there is no reason why I wouldn't continue to make high 6/low 7 figures a year doing what I am doing so I would be pretty content either way. From my perspective, I really missed out here.

Now, doesn't this still apply to me? Can someone tell me if it makes sense for me to do the same thing now for the same reasons? My outlook on the industry isn't necessarily negative, but I feel like this could be a smart hedge for someone who makes all of their money from this industry.

Any advice on this situation would be appreciated, even going as far as explaining (hypothetically) what you would do in my position.

Thanks,
tc