US Court Decision Leads to Stock Market Frenzy and Should Result in a Betting Bonanza
News that the US Supreme Court has struck out the Professional and Amateur Sports Protection Act (PASPA) on Monday has sent sports betting company investors into a frenzy.
The 1992 PASPA banned sports betting outside of the state of Nevada but with that law now struck out, the floodgates are open. Potentially any State in America will be able to licence, regulate and tax traditional betting outlets and casinos plus allow its citizens to gamble online.
The decision has been welcomed by the American Gaming Association (AGA) who declared: “The Supreme Court’s decision is a victory for millions of Americans who want to bet on sports in a safe and regulated manner.” It is believed Americans currently place $150bn (€125bn) a year in illegal sports bets.
It is also a victory for shareholders in the UK’s established bookmaking companies who saw their investments rise dramatically on the back of the news. 888Holdings, AKA 888sport saw its share value rise by more than 15% within hours of the announcement of the court’s decision.
Ultimately the combined share prices of London-listed gambling firms rose by more than £1.5bn in 24 hours as investors strove to get involved in a potential betting bonanza.
It is not just investors in betting companies that are set to benefit. With a potential 250 million gambling starved American adults joining the online betting revolution online poker players are likely to find a lot of ‘fresh meat’.
Likewise online betting exchanges may feature considerably more liquidity and sports punters should get better prices as companies clip their margins desperately trying to attract new customers or simply balance their books.