Are Online Gambling Companies a Good Bet?

November 12, 2007

There are many things in life that are a gamble besides actually participating in online gambling. That includes of course playing the stock exchange, which is a scary gamble all of its own. However, when it comes to gambling on online gambling, some companies are a better bet than others.

According to experts, there are some online gambling companies that are worth investing in, while others are shaky at best. With the passing of the Unlawful Internet Gambling Enforcement Act, more and more online gambling companies were not safe bets, and those that play the stock market were smart to avoid investing in them.

However, with recent legal events surrounding the UIGEA, many online gambling companies have seen a jump in their investors as more and more believe that the UIGEA will be reversed and online gambling will be allowed in the US market again. But those online casinos with the staying power to last through the UIGEA and hold their position are obviously going to be a better investment than one that folded and is now looking to come back in.

One of those holding power companies would be Magna Entertainment Corp. (TSE: MEC.A). They have faced the fire and held firm and are listed as a good investment for those looking to online gambling as an investment. They are actually out of Canada, so they were not bound by US laws, but even still they are not exempt from them because of their location.

YouBet.com (Nasdaq: UBET) on the other hand is not listed as a viable online gambling investment option. They say that they have not demonstrated the strength to hold fast in this market and if you hold their stock you may want to look into selling.




Back to November 2007 Archive.