March 1, 2013- Caesars Entertainment Corporation (CZR) and Boyd Gaming Corporation (BYD), two major hotel-casino operators in Atlantic City saw the value of their common stock increase substantially Thursday on news that the state of New Jersey, under Governor Chris Christie, is planning to legalize online gambling.
Analysts were energized by the news, as were investors because both believe the online gaming option will result in a revival of business in the “resort by the sea” which is the second largest casino hotel destination in the United States although well behind the number one destination, Las Vegas.
The two companies account for more than sixty percent of Atlantic City’s gaming revenue, making them the most influential of all the companies doing business in that seaside city.
The new law will give preference to existing New Jersey casino operators in issuing online gaming licenses, a fact that obviously benefits the two big companies.
Caesars Entertainment Corporation owns and operates four hotels in the area, including Caesars Atlantic City, Bally’s Atlantic City, Harrah’s Resort Atlantic City and Showboat Atlantic City.
Boyd Gaming Corporation owns and operates a single property, the very upscale Borgata Hotel and Casino.
Shares of Caesars stock rose six percent yesterday and closed at $12.37. Boyd Gaming Corporation’s stock climbed four percent to $6.74.