http://seekingalpha.com/article/3189...ing-in-the-u-s

Thoughts regarding this article? I wanted to put together a portfolio based around legalization in the next couple years - any ideas?

I wouldn't build your whole portfolio around this one theme. Maybe make one bet related to this?

These stocks swing like a mofo every time legislation news pops up. There are already plenty of other people speculating along with you=bad for you.

Online poker legislation isn't suddenly going to change the fact that MGM (as an example) is up a creek without a paddle.

Also, MGM has 25% of the deal w/ Party/Bwin having 65% and Boyd 10%. Will they make some money? Yes. Will it be SIGNIFICANT to their business? Maybe, maybe not.

Another thing, you don't know what online poker is going to look like in the United States. It might only be a few states, there might be a federal bill (which will have to allow states to say "no thanks"). The landscape is VERY MURKY.

I can't imagine any company involved with online poker won't have a significant increase to their revenue......The upside is massive for these companies, and very few states are going to oppose this especially once they realize the revenue it'll generate.. cash is king in the end.....

what companies do you feel will benefit assuming we have federal regulation?

Big casinos, a few software providers.

Surely you understand there are underlying businesses that affect the profitability and price of these companies?

Would poker be profitable? Sure. have a bunch of other people already speculated by driving up the price? yep. Is poke r enough to make MGM go up in the future? Maybe. Will we see federal legislation? Maybe. State by state would be MUCH worse for MGM imo.

If you really don't understand what I'm saying I suggest you read some books.

sorry, im an idiot, your a genius.....what books would you recommend I read to get on your level chief?

http://forumserver.twoplustwo.com/30...s-news-488527/

Buy stock in Google if you think that they will make a play with Zynga to get into the market. Its purely a speculation play, but GOOG isn't a stock likely to decrease in value even IF they don't make a play, so you've CYA effectively

thanks babe

Buy Zynga in response to the news they will get involved eventually in real money poker online?

LT22 do you have a definitive opinion on this matter or you have no clue? Surely someone with your level of expertise would be able to advise the masses.

I think what hes trying to say (although needlessly cryptically I agree) is that US I-poker is only a small part of these businesses. Many of them deal with gambling internationally, some deal with the tourism hotel business, and some have struggling business models regardless. He did mention by name a few casinos and software providers that he felt would benefit, but only with the aforementioned caveat.

MGM, Wynn, bwin.party already have core businesses so it would be hard to get direct exposure to US online poker without exposing yourself to the larger part of these businesses, some of them (mgm is a good example), that you might not want to be involved in. I certainly wouldn't.

Ultimately, and heres where the books come in... I think the general consensus is that building a "portfolio" based on Ipoker isn't going to be easy, neither is it a good idea as a reasonable investment strategy.

Scientific Games spiked like 15% the next trading day after that DOJ opinion came out and is actually up 50% since then, damn...

Does anyone know who Scientific Games works with?

For example how party works with mgm, or pokerstars with wynn etc. ...

I haven't looked into Wynns or MGMs returns the past couple years, but I'd imagine online gaming would be a huge upside given the profit margins that blow away brick and mortar casinos.......probably a good idea would be to look into their returns over the years and compare it to pre UIEGA Stars/Tilt to get SOME kind of idea how online gaming compares to these brick and mortar players......

Either way Im suprised there isnt more talk about what is going to be a booming market. We know online gaming is going to happen, we know how absurdly profitable it is, and the major competitors have been wiped away...this is an open market with clear long term results, so I dont get why there isn't more interest.