Gaming Stocks Up on More UIGEA Speculation

Shares of online gaming companies are up today on further speculation that small steps are being taken to combat the Unlawful Internet Gambling Enforcement Act (UIGEA). Similar news was reported three weeks ago, resulting in a bump in stock prices, but at that time, the news was nothing more than rumor.

Not to get people’s hopes up, but the Financial Times has reported today that U.S. Congressman Barney Frank (D-Mass.), chair of the House financial services committee, is working on legislation to repeal the UIGEA. eGaming Review has confirmed this with Frank’s office.

Rep. Frank has been one of the most outspoken opponents of the UIGEA, calling it one of the “stupidest laws” ever passed. Below is a clip of Rep. Frank railing against the bill in Congress (apologies for the poor audio/video syncing).



It has been posited that the successful election season by the Democrats this past fall which allowed them to regain control of Congress will be good for the pro-online gambling community. The Financial Times feels that this, combined with Rep. John Conyers (D-Mich.), another official sympathetic to the industry, as chairman of the House judiciary committee, could lead to very positive things for online poker. At the same time, however, there are still very big leaps to be made for online poker players to have their way. There are plenty of politicians who either don’t care enough to take action or do not want online poker legalized.

But, even though a repeal of the UIGEA or at least a carve-out for poker most likely a long ways off at best, it is refreshing to hear that at least someone in Congress has the interests of poker players in mind.

Shares of Party Poker were up 12.5 percent on the news. Shares of 888 Holdings and Sportingbet, while not up nearly as much, still saw solid jumps of 3.88 and 5.38 percent, respectively.

Originally published 1:38 PM Wednesday, March 14, 2007