Approval of Internet gaming bills in Nevada and New Jersey less than a week apart helped fuel investors’ interest in the gaming industry during the last half of February.
The largest beneficiary was Caesars Entertainment Corp.
Nevada and New Jersey began implementing online gaming websites directed at customers gambling on computers or mobile devices within state borders.
Gov. Brian Sandoval signed Nevada’s interactive gaming bill Feb. 21 after less than one day of debate. Not to be outdone, New Jersey Gov. Chris Christie signed his state’s online gaming bill Tuesday after state lawmakers approved changes suggested by the governor when he vetoed the initial legislation.
Caesars owns four of Atlantic City’s 12 casinos. In Las Vegas, Caesars operates 10 casinos on or near the Strip.
But the company also owns the popular World Series of Poker.
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What fiscal cliff?
Gaming stocks were oblivious to investor worries that the lack of a year-end agreement in Congress to avoid wide-ranging tax increases and spending cuts would push the economy over the edge.
The sector closed out 2012 on a positive note in December.
Of the 12 gaming companies followed by Las Vegas financial adviser Applied Analysis, 11 showed marked increases in their average daily stock prices during the month.
Eight of the companies finished 2012 with a higher average daily stock price than in 2011.
Applied Analysis principal Brian Gordon told the firm’s clients Monday in a research report that investors believed a compromise would likely take place in Congress concerning federal revenue enhancements and other measures.
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Concerns over the looming fiscal cliff added increased volatility to an already shaky gaming sector.
Average daily stock prices for eight of the 12 casino operators and slot machine manufacturers followed by financial consultant Applied Analysis tumbled in November.
Boyd Gaming Corp. and Caesars Entertainment Corp. experienced double-digit percentage declines in their average daily stock prices despite events that what many analysts termed as good news.
Overall, the stock price dip contributed to a 10 point decline in the Applied Analysis Gaming Index, which accounts for more than 300 different market variables. It finished at 420.52.
Applied Analysis principal Brian Gordon said mixed results in third-quarter earnings reports announced by several gaming companies contributed to the slide.
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