Numis Sees "Positive" Outlook for Online Gambling in Coming WeeksNumis Securities Limited (“Numis”) on Monday helped build some momentum for the burgeoning online gambling sector by upgraded PartyGaming to 'buy' from 'hold'.
In doing so, Numis added the following statement:
‘The shares in our view will bounce up to the 35-37p region over the coming weeks. However, if we start to get a pick-up in US online gaming regulation news flow over the coming weeks (which is highly possible) then you will see these shares react strongly (up and down depending on the nature of the news).’
Numis Securities is a rapidly growing investment banking and institutional stockbroking business and is the trading subsidiary of Numis Corporation Plc, whose shares are quoted on the Alternative Investment Market of the London Stock Exchange.
Gambling911.com on Monday also provided a positive outlook for online gambling with some reservations, citing the numerous efforts in favor of the industry. These included a proposal from the House Financial Services Committee, Barney Frank, to repeal the Unlawful Internet Gambling Enforcement Act; The World Trade Organization's findings against the US position on Internet gambling coupled by several nations offering support for the decision; and an injunction request to stop the UIGEA process. (See:
Plenty of Hope for Online Gambling)
Barney Frank has frequently referred to the UIGEA position as nothing short of "prohibition" while the WTO has used that other "p" word in defining its decision against the United States: "Protectionism".
The UIGEA, while essentially banning online gambling via banking instruments, grants exceptions to horse betting and professional sports leagues. Both these groups are represented by powerful lobbying entities in Washington. Indian Casinos and state lotteries are also exempt.
When PartyGaming, Sportingbet and others pulled out of the US market last October, millions of dollars was said to have been lost by investors trading in this sector.
In 2005, PartyGaming was the single biggest IPO on the London Stock Exchange.
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Christopher Costigan, Gambling911.com
Originally published July 2, 2007 10:41 am ET
