Gaming Stocks See Gains After This U.S. Supreme Court Decision

It was a big day for several casino operators and gaming companies on Monday.

The Supreme Court decided that states can allow sports betting by upholding a 2014 New Jersey law allowing for sports betting in the state casinos and racetracks. This has opened the door for others to legalize as well

According to the CEO of DraftKings, the ruling will make sports betting into a “huge industry.” The company is hoping to let users be able to bet on game outcomes and point totals.

“This is going to be a huge industry, and there will be a lot of competition, which is great for consumers,” DraftKings CEO Jason Robins said to CNBC’s “Power Lunch.”

Scientific Games Corporation incoming CEO Barry Cottle remarked, “On May 14, 2018 the Supreme Court of the United States overturned the Professional and Amateur Sports Protection Act (PASPA), a decision that opens up a path to legalization of sports betting across the country. This decision will potentially bring about the greatest wave of gaming expansion in the United States in the past 20 years. This is certainly an exciting development for our industry, our customers and our company. Scientific Games is uniquely equipped to help our customers capitalize on this new sports betting opportunity.”

The Wall Street Journal wrote, “The ruling could bring major changes to the wagering landscape, with ramifications for U.S. professional sports leagues and college athletics, as well as casinos and European betting shops, which have been eager to tap into the U.S. market.”

New Jersey Governor Phil Murphy stated, “New Jersey has long been the lead advocate in fighting this inherently unequal law, and today’s ruling will finally allow for authorized facilities in New Jersey to take the same bets that are legal in other states in our country.”