Online Casino Stocks Affected by Dollar
UK daily The Telegraph has warned investors in stock belonging to online casino firms of an impending slump in the market. Quoting a leading broker at Nomura, the newspaper warned of a ‘torrid summer for equities,’ as markets suffered from the sharp fall in the dollar. The U.S. dollar is currently at its lowest level since 1997 and is affecting the stability of shares in online casino firms and in other ventures. A further two factors have been named as contributing to the uncertainty over online casino stocks – a future IPO from Poker Stars and an announcement by the Mohawk tribe responsible for the Kahnawake gambling jurisdiction that they are considering a stock exchange investment.
Online casino poker site Poker Stars is reportedly preparing to float on the London Stock Exchange before the end of 2006. According to some online casino analysts quoted by the Sunday Times, the firm could achieve a floatation of 1.1 billion pounds sterling. The Israeli-owned online casino firm has been considering whether to sell or go public in recent months.
An indication from the Mohawks of the Kahnawake First Nation Enclave that the tribe intends to become involved in the online casino industry has also been reported this week. The tribe responsible for the gambling jurisdiction is close to finalizing an agreement that would arm them with a 40 percent stake in an online casino firm soon to float publicly on London’s Alternative Investment Market. The Mohawks are subsequently expected to become an international player in the online casino industry.