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Improving Odds for Online Gambling

4 March 2013 in Trading Ideas

New Jersey recently approved online gambling for residents of the state, a move designed to give a boost to the casino operators in Atlantic City1. The action, along with a similar one by Nevada, affects residents only of those specific states. But they may be signaling a growing public acceptance of online gambling, which could lead to loosened restrictions in other states.

That could be big news for the companies in the online gaming space. Since most of these companies already have the technological infrastructure in place to reach global audiences with a gaming mindset, they may have a head start when it comes to including gambling as their latest offering.

Various forms of poker offered by offshore companies, for example, were wildly popular online before being shuttered by U.S. authorities. It’s easy to imagine a company like Zynga offering its own version of Texas Hold ‘Em, should the law allow it.

The Online Gaming World motif contains stocks focused on this growing industry. Many of the companies provide popular multiplayer role-playing games like World of Warcraft, a strategy game with millions of fans, while some are social gaming companies like Zynga, famous for its Facebook games. This motif is up 7.5% in the past month.