Bwin and 888 See Shares Rise with New Jersey Legislation
Bwin.Party, the online gambling operator which partnered with Atlantic City’s top-grossing casino, has seen stocks surge to a nine-month high since New Jersey approved internet gambling.
The stock rose by 15% to 158 pence and was leading advancing stocks on the FTSE All-Share Index; they closed at 150 pence and raised its market value to $1.83 billion.
Overall about 9.1 million shares were traded; three times the average for the past three months.
The company has partnership agreements with both Boyd Gaming Corp and MGM Resorts International, the co-owners of the Borgata Hotel Casino & Spa.
888 Holdings Plc has an agreement to provide technology to Caesars Entertainment Corp., the largest operator in Atlantic City.
Since the new laws were signed, analysts have raised their price prediction for Bwin.Party shares to 200 pence from 160 pence. They also believe that 888 Holdings, which has already risen 8.3% to 162.8 pence, will rise to 175 pence.
Furthermore, with more states considering legislation to allow internet gambling, analysts believe that Bwin.Party and 888 shares could quadruple in value.