News on Monday that the Nevada Legislature passed a bill that could make Internet gambling legal in the state sent Internet gaming stocks shooting upward. Shares in companies that develop Internet software and web sites that facilitate online gambling began to climb steadily over the past month in anticipation of the bill’s passage.
Shares in CryptoLogic Inc., a Toronto-based company that develops Internet gaming software, are up more than 23% over the past two sessions. Shares in Chartwell Technology Inc., a Calgary-based company with an agreement to develop an online gaming web site for casino giant Harrah’s Entertainment Inc., have more than doubled since April.
David Bajwa, head of investor relations at Chartwell, says the Nevada legislation “is a huge breakthrough” for the Internet gaming industry. “It legitimizes the industry and opens up a whole new world of revenue sharing for companies that build software to run the sites.”
Nevada Senate Approves Internet Gambling
Nevada lawmakers voted casino en ligne Monday to make the Silver State the first in the U.S. to approve Internet gambling.
On the last day of its two-year legislative session, the Senate voted 17-4 to approve AB466. (An earlier version of the bill to approve Internet gambling, AB578, died in the Senate; but proponents managed to revive the legislation by tacking it onto AB466.) The legislation allows the Nevada Gaming Commission to “adopt regulations governing the licensing and operation of interactive gaming” as long as the casino web sites would be able to deter bets placed by minors and by persons living in jurisdictions where gambling is illegal.
Only resort-size casinos would be eligible for Internet gaming licenses according to the bill, which now moves to Gov. Kenny Guinn for his signature. A spokesman for Gov. Kenny Guinn said he supports the idea of Internet gambling, but would not sign the bill until he had read it in its final form.