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Written by Brian Hicks
The Unlawful Internet Gambling Enforcement Act (UIGEA) was first put in place in late 2006. However, if it’s reversed, as Barney Frank is tying to do, the United States could reap a $17.6 billion profit over the next 10 years, according to a PricewaterhouseCoopers study.
As the 111th Congress begins work under a new administration, Frank has already expressed interest in reintroducing legislation that would counter the UIGEA, reportedly telling the Financial Times that he wants to ’reintroduce a bill in the next few weeks to establish a licensing and regulatory framework for online gambling operators.’ It’ll be similar to the Internet Gambling Regulation and Enforcement Act of 2007 (IGREA), which was introduced by Frank, attracted some support, but never made it to the House for a vote.
And, according to Poker News, Franks expressed belief to the Financial Times that the ’chances for the new legislation to become law to be much better than had been the case for the IGREA, both because of the change in administration as well as ’because public opinion [is] demanding the right to gamble online.’
On this news, there are two stocks you must own now... but we can’t divulge which ones they are in this forum without unfairly rocketing them with tens of thousands of readers. Instead, we’ve posted their names in the latest SC Trading Pit article, available here.
But understand this: We’re simply trading news with these two trades. As we get closer to bill reintroduction, we expect these stocks to move even higher. And if a bill were to be approved, we’d look to ride out the news dissemination momentum.
Las Vegas Sands Corp. Las Vegas Sands is the world’s largest casino company with over $14 billion. MGM Resorts (NYSE:MGM) Betting on a small scale in sports is considered unimportant. Esports Entertainment Group Inc. (NASDAQ: GMBL) operates as an online gambling company in Canada. It offers bet exchange style wagering, player versus player betting and betting on professional.
Why Trading on the News Works
College students are one of the top user groups for online and mobile games. Tencent Holdings (0700.HK) and NetEase (NTES)—both with significant exposure to the online gaming business—appear to be. International Game Technology (IGT) PLC: (HQ: London, England) IGT operates and provides an.
You see, what allows us to trade on news is information friction, or the delay in the dissemination of news to a greater number of investors through electronic media. Sometimes the news or rumor we pick up on won’t be fully disseminated, meaning that the intended audience won’t get it until later in the day when they get home from work. By then, we’ve already bought the stock and are just waiting for the trigger (the nightly news report, for example) that’ll throw gasoline on our small flame.
But the question remains, can the average investor really profit from news without having proprietary research?
Yep.
As a study from the Harvard Institute of Economic Research observes, ’New technology is rapidly democratizing securities markets. The costs of gathering information and executing trades are being driven to negligible levels. These changes allow a rapidly growing base of investors to participate in the financial system.’
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And there are dozens of high-level studies to support my news-driven investment approach.’I examine returns to a subset of stocks after public news about them is released. I compare them to other stocks with similar monthly returns, but no identifiable public news. There is a major difference between return patterns for the two sets. I find evidence of post-news drift, which supports the idea that investors under-react to information [ . . . ] There is a large amount of evidence that stock prices are predictable.’
—Wesley S. Chan, M.I.T., Stock Price Reaction to New and No-News: Drift and Reversal after Headlines
’Arguably, the most important process affecting price movements is the news arrival process. For example, in Ross (1989) the volatility of stock price changes is directly related to the rate of flow of information to the market [ . . . ] On days no news arrives, trading is slow and price movements are small. When new information arrives that results in a change in expectations, trading becomes vigorous and the price moves in response to the impact of the news [ . . . ] In addition to price movements, news arrivals can affect the time between trades, number of transactions, and volume of trade.’
—John H. Maheu, University of Alberta, and Thomas H. McCurdy, University of Toronto, News Arrival, Jump Dynamics and Volatility Components for Individual Stock Returns
’Periods of good news are followed by periods of unusually high returns relative to natural benchmarks, with the reverse for bad news [ . . . ] Post-event drift is the tendency of individual stocks’ performances following major corporate news events to persist for long periods in the same direction as the return over a short window—usually one to three days—encompassing the news announcement itself.’
—Andrew Jackson and Timothy Johnson, Unifying Under-reaction Anomalies
So the next time someone says you can’t trade on news, ignore them.
Trading on the News: A Mental Note
Please note, trading on news alone can be a dangerous, highly volatile blood sport. It’s the reason it’s not the sole trading apparatus in SC Trading Pit.
When we’re not trading news, we trade volume spikes, undervalued gems, earnings growth, the undiscovered, the forgotten, the ignored, the ones with little or no analyst coverage, momentum, blood in the streets, technical set-ups and candlestick patterns.
We’re not your average run-of-the-mill small cap letter. While we’ll take the small 10% gainers, we’re really looking for the next Yahoo, eBay, and Wal-Mart.
For profit possibilities like these, visit SC Trading Pit. Good Investing,Ian L. Cooperhttp://www.wealthdaily.comThe Best Free Investment You’ll Ever MakeSign up to receive the Wealth Daily newsletter - it’s absolutely free! In each issue, you’ll get our best investment research, designed to help you build a lifetime of wealth, minus the risk. Plus, by signing up, you’ll instantly receive our new report: Surviving the Coming Economic Collapse.
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After getting your report, you’ll begin receiving the Wealth Daily e-Letter, delivered to your inbox daily. Allstar Gambling USA / News / Top 5 Gambling Stocks 2020Allstar GamblingJanuary 18, 2020TwitterFacebookWhatsApp
The Supreme Court of the United States of America in a landmark judgment given in May 2018 declared that the Federal law that allowed gambling of legalized sports in the country no longer stands constitutional. It was held that the law is violative of the 10th amendment. It was now declared that gambling in sports could now only be sanctioned and approved by states and is not under the purview of the Federal Government. This only resulted in a predictable sports insurgency.
In October, New Jersey had over $250 million involved in betting and this was a significant increase in 41% on betting as compared to how it was just a month before. Many other states are following the same pattern as gambling in legal sports reaches a new high. These include The Garden State, New Mexico, Pennsylvania, Rhode Island, Delaware and Mississippi among others. It is predicted that by the year 2022, all around the world, sports fans will be having as much as $1 trillion invested in online betting per year.Five gambling stocks with great potential in 2020
Given below are five gambling stocks that one should keep an eye on in regard to gambling in legalized sports.1. MGM Resorts (NYSE:MGM)
Betting on a small scale in sports is considered unimportant and insignificant in Las Vegas, USA. This comes into picture when we compare blackjack gains of $1.24 billion to actual gains of $329.1 million as extracted from legal sports. However, the news is that the chief chain of casinos to prime timing. This major casino hand in the United States alone generated over $4 billion of revenue in the city of Vegas. However, it also has its working in the Atlantic City but it overtook a proportion of the Casino Empire in the city of New York. It now has a substantial mark in the betting arena of sports having a rank of $114 million which accounts to be 35% in the betting world. MGM holds a market grab of $13.5 billion. It is utilizing its monetary strength to turn around the sports world when it comes to betting. The casino major has introduced betting in sports in two casinos in the Mississippi and has finally emerged as the “authorized gaming counterpart” of the NBA.
MGM Resorts has finalized deals with the most significant and prime leagues of the country. These include basketball, hockey, and baseball at the professional level. The leagues permit MGM to cross-advertise the casinos belonging to the company and also promoting the app for sports betting. It is important that note that MGM has only been possible in regulating bets in states where the action was previously legal. Till now, the biggest reward lies with the National Football League. MGM presently has a great hold of success and plans of having Philadelphia Eagles and Pittsburgh Steelers involved in sports betting, following which each game will be a fair play.2. BRAGG (BRAG. V BKDCF)
The BRAGG Gaming Group was earlier known as Breaking Data Corporation. It has onlookers as large as 31 million virtue of its media asset, Give me Sport (GMS). It even has an internet connected playing the stage that is famous worldwide and is known by the name, Oryx gaming. Through Oryx Gaming aims to influence the GMS viewers into gaining power and emerging as the biggest betting of sports gaming customer record on the planet. The path of online gambling gives surprising levels of profit. Studies show that the gross rewards in the market through gambling in 2018 were $46.7 billion. It is predicted that the amount will go up to $89 by the year 2025.
The Facebook profile of GMS has as much as 26 million active user accounts. If this data is compared with ESPN, we see that even a significant sports brand as ESPN has only 19 million users on its Facebook page while its total worth amounts $28 million. If we talk about Sky Bet, the property was just sold off for %5.7 billion and only had 819,000 people as its audience. This has only led Oryx Gaming Services to introduce a GMS in order to have only one platform focusing on Sports Betting. Once the OGS is launched online it will incorporate the OGS technology with GMS to bring out an amazing experience to all the BRAG’s users.
Today, it is noticeable that BRAGG has two key possessions GMS and Oryx. The former has had an increased revenue earning of over 400%. The per month traffic online has also added by more than 5 million and additional revenue growth of 30%. It is believed that that BRAGG can grab eyes of its possible audience; it can bring to large monetary gains to the company. It can even come out as an important success story of this year.3. International Game Technology (NYSE:IGT)
After having an unsure revenue through the year where the company had a significant one-year increase of $31 to a decrease of $14 by November. It is only in December that the numbers found an equilibrium at $16. It has a market hold of $3.4 billion and 12,000 employees and is known to be a big company that produces a significant amount of casino playing equipment and machine for slots, more than any other company. But now the company is evolving and embracing betting in sports. Since IGT is a service provider it shall not have to worry about the risks of maintaining books of sports. It merely needs to complete the requirements of companies like MGM and infrastructural construction that help in encouraging sports.
In 2017, IGT was managing money worth $12 billion being used in sports betting. It is advisable for IGT to be safer so that safely all the bets are placed by potential investors in the year 2019. In July 2018, IGL claimed to have started a collaboration with the famous betting company FanDuel. As per the collaboration, IGT will be responsible for bringing FD’s ongoing betting mechanisms to markets in 15 states of the country. IGT will also launch PlayShot that will use FD’S consumer looking and waging technology and provide service to people who bet in sports. FD wishes to use the technology of the very famous IGT to establish a remarkable footing in the world of betting in sports. Hence, it is predicted that after an uneasy year, IGT’s hard work and luck will finally pay off in 2019.4. BOYD Gaming Corporation (NYSE:BYD)
The company is a significant and huge casino regulator in the United States and is the owner of 29 gaming possessions in 10 states. It is coming out to be a big character when it comes to sports gambling.
The previous decade, Boyd has shown unusual skills that have contributed positively to the company. It has dealt with a lot of sports books in the City of Sin. Since betting is considered legal it is planning to expand to different regions and their markets.
The firm has also come into collaboration with MGM as per which they will be equal partners in online and offline (mobile) gambling mechanisms. MGM is proposing its poker and playing applications for 15 states under sportsbook of Boyd’s. The deal is unexpected and can be the start of a huge gaming monopoly together owned by Boyd and MGM. B’Connect is Boyd’s new application for gaming and is used in 3 casinos. It has also signed a work project with FanDuel and offered to lend out its gaming characteristics for FD’s mobile and internet-abled gambling services. The contract allows for Boyd to have authority over all the states where it possesses licenses for gaming, other than Nevada.5. Marriot International (NASDAQ:MAR)
Marriot serves as the biggest hotel businesses in the world. The hotel brand has a lot of collaborations with casinos and is even partners with them. Presently, MGM and Boyd wish to collaborate with Marriot to use their customer turn out to their own advantage and attract extra business. Marriot is significant all over the country and has deals relating to license with JW Marriot Resort & Spa located in Las Vegas. Recently, after all the negative publicity the hotel chain is facing, the company gave a statement regarding the building of a casino and resort with 4000 rooms. The negative attraction due to scandalous reported a breach of data. But the company has been patient in moving forward and strategized well to come out and claim over the market all over again.Online Gambling Company Stocks
Another company expected to have increased growth since gaming starts again:6. Millenial eSports Corporation (OTCQB:MLLLF)
It is a small-scale firm located in Toronto with its main focus on E-Sports and E-Gaming. The company works on all- creation of content, data analysis, media and broadcasting, and, tools for execution. The firm introduced analytics and intelligence in business items for industry relating to e-gaming. It has even started working on the preferences on Aston Martin and McLaren, Motorola G and Formula E which are mainly based on mobile gaming arena.Join MYB Casino now! The NO-nonsense USA gambling site!Bonus:
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