Online Gambling Revolution Will Benefit These Public Casino Stocks

The Department of Justice’s recent announcement of plans to reverse its interpretation of the federal 1961 Wire Act opens the way for online gambling. This is a triumph for cash-needy states hoping for new online poker and lottery revenues. Online gambling worldwide is worth an estimated $30 billion, and online poker in the United States could be worth as much as $6 billion per year.

The Justice Department had until now maintained that the Wire Act makes online gambling illegal even within a state’s borders. The new interpretation, written by lawyers in the Justice Department responding to requests for clarification from Illinois and New York, established that the law instead specifically forbids online betting on sports, not nonsports gambling within or across states borders.

“The ordinary meaning of the phrase ‘sporting event or contest’ does not encompass lotteries,” wrote Assistant Attorney General Virginia Seitz. “Accordingly, we conclude that the proposed lotteries are not within the prohibitions of the Wire Act.”

Here’s how top public casino stocks are reacting to the major news:

Las Vegas Sands Corp. (NYSE:LVS): LVS shares recently traded at $43.77, up $0.23, or 0.53%. They have traded in a 52-week range of $36.05 to $51.05. Volume today was 2,703,051 shares versus a 3-month average volume of 14,684,200 shares. The company’s trailing P/E is 29.18, while trailing earnings are $1.50 per share. Get the most recent company news and stock data here >>

Wynn Resorts Ltd. (NASDAQ:WYNN): WYNN shares recently traded at $112.67, up $2.67, or 2.43%. They have traded in a 52-week range of $100.51 to $172.58. Volume today was 882,734 shares versus a 3-month average volume of 3,688,460 shares. The company’s trailing P/E is 26.30, while trailing earnings are $4.28 per share. Get the most recent company news and stock data here >>

MGM Resorts International (NYSE:MGM): MGM shares recently traded at $10.34, up $0.38, or 3.82%. They have traded in a 52-week range of $7.40 to $16.94. Volume today was 12,411,693 shares versus a 3-month average volume of 19,139,200 shares. The company’s trailing P/E is 1.79, while trailing earnings are $5.79 per share. Get the most recent company news and stock data here >>

Melco Crown Entertainment Ltd. (NASDAQ:MPEL): MPEL shares recently traded at $9.55, up $0.06, or 0.63%. They have traded in a 52-week range of $6.13 to $16.15. Volume today was 842,201 shares versus a 3-month average volume of 8,391,370 shares. The company’s trailing P/E is 25.27, while trailing earnings are $0.38 per share. Get the most recent company news and stock data here >>

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