Seeking Alpha

Gaming companies with ties to New Jersey are on the move after Governor Chris Christie asks for...

Gaming companies with ties to New Jersey are on the move after Governor Chris Christie asks for revisions to a bill covering online gambling in the state. The governor says he will approve the bill if its allows for a 10-year trial period for online gambling and ups the state's take on winning to 15%. Boyd Gaming (BYD +5.6%) and Caesars Entertainment (CZR +13.7%) are flying off the news, while Zynga (ZNGA +2.5%) is getting a smaller speculative bounce on the idea that it can eventually get in on the fun too.
Comments (6)
  • a politician will do anything for money...and boy is there money in Gambling..lots of it...mostly the poors money...who needs food when you are going to win big....
    7 Feb 2013, 02:18 PM Reply Like
  • Who are you to tell someone how to spend money? Guess it should not be a choice but directed and dictated by the gov't? Who are you to bash casino gambling with something on the order of 85-90% payout when you obviously have interest in stocks? What is the difference? As small time investors you don't think you can match that 85-90% win can you? I don't care either way, I don't play cards for money or throw dice or have ever been in a casino, but I don't care if others do. That is simply a personal choice. As to it being mostly "poor" money I suggest you re-check your facts, most of the money that casinos get is from upper middle class to "rich" players, not the poor. In fact, States get more money from the "poor" in lottery tickets. You might want to look up the numbers before spouting off.
    7 Feb 2013, 03:32 PM Reply Like
  • To heck with the Internet, a sports book concession in AC would transform that place.
    7 Feb 2013, 04:23 PM Reply Like
  • Would it? I don't know beans about sports betting, so? Or would it simply move it to the open market rather than the black market?
    7 Feb 2013, 04:57 PM Reply Like
  • If Internet gambling...becomes legal and regulated...states will make tons of money at first......then spend tons of money on unemployment benefits....lots of people work inside a casino..not all high dollar jobs I know...but jobs none the less....from dealers, food, housekeep, maintenance, accounting and security to name a few...I don't object to it at all and wish my state would allow it...but brick and morter only ...if only for the jobs.....gamblers gamble legal or put some people to work
    7 Feb 2013, 05:47 PM Reply Like
  • Looks like ZNGA is the most probable choice out of the 3 (BYD, CZR, ZNGA) to get the license for US online gambling 10years trial from Chris Christie.
    1. they have higher market capital out of the 3.
    2. no debt
    3. lots cash reserve: 1.65b
    4. online gaming/gambling experience with zynga poker
    5. online gambling patents portfolio from acquisitions
    6. financially healthier than the two competitors:
    BYD=27% chance for bankruptcy
    CZR=29% chance for bankruptcy
    ZNGA=0% chance for bankruptcy, same rating as apple, google, and microsoft
    rating by Macroaxis.
    7 Feb 2013, 11:08 PM Reply Like
DJIA (DIA) S&P 500 (SPY)