Amaya Gaming considered Rising Stock in 2016

Amaya Gaming has made a rapid ascension in the online gaming world ever since buying PokerStars and Full Tilt for $4.9 billion. However, their stock took a hit after news of a disappointing third quarter and an unfavorable currency exchange rate. But despite these recent troubles, some financial analysts think that Amaya is in for a big rise in 2016.

You can count Frederick Steier of TheStreet.com as one of those who thinks that Amaya stock is on the up. For one thing, he likes how the company has already managed to settle $690 worth of debt from the purchase of PokerStars/Full Tilt. Beyond this, he sees U.S. iGaming regulation expanding to more states in the coming years. Here’s an excerpt from what Steier has to say on the matter:

“While most states have no restrictions on online poker, for Amaya to grow, states must enact enabling legislation. So far, a patchwork of permissions has rolled out. Delaware and New Jersey both approved online gaming. Nevada has legalized online betting, as well, and that’s one of the big kahunas. Players located in these states may play legally. California lawmakers have been discussing passage of online poker legislation, although they were unable to reach an agreement in their 2015 session, and Pennsylvania has been considering online gambling bills, too.

Early adopters will provide a foundation for other states, as kinks get worked out and policymakers evaluate the programs, particularly with respect to tax revenue. Given how desperate many state governments are for revenue, it won’t be surprising if online gaming spreads quickly.”

This of course is heavy with speculation, given that Amaya recently saw their stock fall from the mid-$20 range to just under $16. However, states like California, Massachusetts, New York and Pennsylvania have had serious discussions about regulating online gaming, meaning it’s only a matter of time before we see expansion.

Another point working in Amaya’s favor is that they’re now licensed to participate in the New Jersey iGaming market. This comes four years after PokerStars and Full Tilt were pushed out of the American market (pre-Amaya days) for money laundering and bank fraud charges.

Even if U.S. regulation moves slower than expected, Amaya will still be capitalizing on the international market, where they have around 97 million customers. So they’ve got a nice base moving forward.

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