Wednesday, February 27, 2013

New Jersey, Nevada Legalize Online Gambling, Good News For Zynga

source: freestockcharts.com
Nevada and New Jersey just legalized online gambling. This is good news for online social gaming company Zynga ($ZNGA), which has been pricing in this news for months now. ZNGA is currently trading up 7.74% at $3.62 (gap fills at $4.45). Back in November, at $2.12 per share, the company was trading below its cash and book value and at 7x the 2012 purchase price of its San Francisco headquarters ($228 million). Nice run, and it looks like Zynga board member Ellen Siminoff made some decent coin on her insider buys at $2.22. In December, Zynga applied for a gambling license in Nevada, but it could take another year to obtain if cleared. Legalizing online gambling will unlock well needed tax revenue for these states.

*Statement from Governor Chris Christie on Signing of Internet Gaming Bill (NJ.gov):

“I am pleased to say that today I signed New Jersey’s Internet Gaming Bill, opening the way for new opportunity to bolster our efforts to continue the revival of Atlantic City, its casinos and entertainment offerings. This was a critical decision, and one that I did not make lightly. But with the proper regulatory framework and safeguards that I insisted on including in the bill, I am confident that we are offering a responsible yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to New Jersey as a whole. I want to thank the sponsors for working quickly to include my recommendations to improve the bill.”

*Sandoval Statement on Signing Internet Gaming Legislation (NV.gov):

2/21/2013

CARSON CITY, NV –Governor Brian Sandoval today made the following statement after signing Assembly Bill 114, internet gaming legislation:

“This is an historic day for the Great State of Nevada. Today I signed into law the frame work that will usher in the next frontier of gaming in Nevada. This bill is critical to our state’s economy, and ensures that we will continue to be the gold standard for gaming regulation.

“I want to thank Assemblyman Horne for his work on this very important issue, and Senate and Assembly leadership for making this legislation a priority. This effort shows what we can accomplish when we put our party labels aside and work together as Nevadans.”

ABOUT AB 114:

The bill, heard by a Joint Judiciary Committee hearing this morning and approved by the Legislature this afternoon, removes the provision requiring federal legislation or Department of Justice approval before online gaming licenses are made active, effectively establishing online gaming in Nevada. The bill also requires the Nevada Gaming Commission to adopt regulations authorizing the Governor to enter into agreements with other states to conduct interactive gaming."

More news:

*Chris Christie Signs N.J. Internet Gambling Bill Into Law (NPR)
*NJ Legalizes Online Gambling, Could Provide Big Boost To Zynga's Average Revenue Per User (CNBC Video)
*Nevada legalizes online poker that could be offered nationwide, Zynga shares spike (Mercury News)
*Nevada governor signs online gambling bill law after measure fast-tracked through Legislature (Washington Post)
*Zynga will bring online gambling to the masses, Pincus says (CNET)

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