Casino companies in the US were enjoying the benefits of the halo effect following Monday’s dropping of PASPA, with share prices soaring on the prospect of a fully legal sports betting sector. MGM Resorts International, Caesars Entertainment, Boyd Gaming and Scientific Games each saw their stock rise significantly in the wake of the SCOTUS ruling.
Caesars, which publicly applauded the verdict with a glowing statement to the market, showed a 7.1 per cent hike in its share price. President and CEO, Mark Frissora, said: “The Supreme Court’s landmark PASPA ruling creates a golden opportunity to end illegal sports wagering once and for all by creating a well-regulated alternative that sports fans can trust. As a result, we expect to be able to provide safe, exciting sports wagering experiences to consumers across the country, as we do today in Nevada. We plan to announce our specific approach to this business as we better understand the opportunities and regulations which evolve from today’s Supreme Court decision.”
Slot producer and sportsbook bet processor Scientific Games benefited greatly, with shares rising by 13 percent, while shares in Nevada’s biggest sportsbook operator, William Hill, were ahead by 11 per cent.
The feelgood factor even extended north of the border to Canada’s Stars Group. The Toronto-based PokerStars owner and soon-to-be parent of Sky Betting & Gaming experienced a 15 per cent gain in its stock.
“The decision by the Supreme Court is an important step forward in the regulation of sports betting in the United States,” said Marlon Goldstein, executive vice president and chief legal officer. “We believe we are well-positioned to take advantage of any new business and market opportunities, and to work with state legislatures in setting up sports betting frameworks that satisfy local consumers’ interest in sports betting while protecting them through safe and regulated betting environments.”