Here’s Why Gambling and Gaming Stocks are Popping Now

Wednesday, the Nevada Gaming Control Board reported that gambling earnings throughout the state in November were up 7.1 percent to $880.1 million. The Las Vegas Strip, which contributes more than half of that sum, had a revenue up 9 percent to $495.3 million. On that Strip, slot machines moved up nearly 3 percent; table games rose 18 percent.

This announcement follows the Department of Justice’s report of late planning to change course in its interpretation of the federal 1961 Wire Act, opening a door for online gambling. That news is very welcome in cash-deprived states looking to online poker and lotteries for profits. Worldwide, online gambling is valued at approximately $30 billion, with projections that online poker in the U.S. could bring in up to $6 billion annually.

Previously, the Justice Department determined that the Wire Act ruled online gambling illegal even inside state borders. This new read on the Act, penned by lawyers in the Justice Department in response to requests for clarification from New York and Illinois, explains that the law rules out online betting on sports, but not nonsports gambling either inside or across states borders.

Here’s how gambling and gaming stocks are reacting to the great news:

Las Vegas Sands Corp. (NYSE:LVS): LVS shares recently traded at $44.45, up $0.66, or 1.51%. They have traded in a 52-week range of $36.05 to $50.65. Volume today was 3,789,541 shares versus a 3-month average volume of 12,122,500 shares. The company’s trailing P/E is 29.63, while trailing earnings are $1.50 per share.

Wynn Resorts Ltd. (NASDAQ:WYNN): WYNN shares recently traded at $109.49, up $1.96, or 1.82%. They have traded in a 52-week range of $101.02 to $172.58. Volume today was 778,612 shares versus a 3-month average volume of 3,078,450 shares. The company’s trailing P/E is 25.56, while trailing earnings are $4.28 per share.

MGM Resorts International (NYSE:MGM): MGM shares recently traded at $11.69, up $0.25, or 2.19%. They have traded in a 52-week range of $7.40 to $16.94. Volume today was 4,599,610 shares versus a 3-month average volume of 16,863,700 shares. The company’s trailing P/E is 2.02, while trailing earnings are $5.79 per share.

Melco Crown Entertainment Ltd. (NASDAQ:MPEL): MPEL shares recently traded at $10.12, up $0.03, or 0.3%. They have traded in a 52-week range of $6.46 to $16.15. Volume today was 2,070,106 shares versus a 3-month average volume of 7,174,030 shares. The company’s trailing P/E is 26.77, while trailing earnings are $0.38 per share.

Boyd Gaming Corp. (NYSE:BYD): BYD shares recently traded at $7.24, up $0.2, or 2.84%. They have traded in a 52-week range of $4.12 to $12.78. Volume today was 393,531 shares versus a 3-month average volume of 1,323,640 shares. The company’s trailing earnings are $-0.12 per share.

To contact the reporter on this story: Brooke Edge at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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