Wall Street Analysts do Not See Federal Online Poker in U.S. Until 2013

Macquarie Securities analyst Chad Beynon has issued a statement that it does not believe federal legalization of Internet poker will happen until next year.   Instead, states like Nevada, which are about to begin licensing intrastate Web card rooms, will begin to reap the rewards. 

"We think the standards were written in a way that will allow for small adjustments as the process moves forward," Beynon told investors. "At this point, no firm date has been set, but 13 companies have now submitted for an operating license."

Other states like New Jersey, Iowa, Connecticut, California and Maine are currently mulling the potential benefits of state regulated online poker.

Senate Majority Leader Harry Reid ended speculation that a measure to legalize Internet poker would be attached to the Employee Payroll Extension bill voted on by both parties.  President Barack Obama has vowed to sign that bill into law once he returns from a trip out west. 

Beynon said land-based casino operators the likes of Caesars and MGM Resorts International will benefit most from state gaming legislation as will lottery vendors.  

"In both cases, we believe slot vendors would be able to generate fees from both content licensing and platform design, but we note that, with a piecemeal rollout, initial revenue and profits may be minimal," Beynon said.

- Aaron Goldstein, Gambling911.com