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Just last week -- New Jersey became the third state to legalize online gambling -- the move could mean big revenues from any of the gaming company.
It's so which names should -- double down on Jolson -- is Credit Suisse senior gaming lodging and leisure analyst.
And he joins us now Joseph good to see you thanks for coming in -- -- NN let's start right away with a big company that city gaming -- -- I understand they've already got into some of this business.
Overseas does that give them a head start -- regard online gambling here.
We'll definitely a New Jersey the initial casinos mean.
Those that are licensed in the state to do business currently -- has a variety of well known brands have been operating overseas international web sites in addition the US.
The last couple years they've been very active in the social gaming space.
OK so let's let's back up a little bit and talk about what this really means when would these companies start to really see some meaningful revenue from online gambling.
Well a lot of our contacts are indicating that New Jersey is likely to go live -- early 2014 that's a best case scenario sitting erect a regulatory delays or push backs.
I think the game changer here as we think about Nevada California other states linking up that's where the ultimately the big dollars and comment.
Now -- Governor Christie right now it's gotta be.
Probably -- the most popular governor in the United States right now he's -- usually.
Successful rate of popular approval.
So how many others is it just that that led to New Jersey beat him being able to get revenues for this or is this something that is gonna sweep the nation.
Well I think it's New Jersey recognizing they wanna be at the forefront of this they're one of the first regional gaming markets open up back and then at the late 1970s.
And I think ultimately what's what's New Jersey gets rolling other states in this opportunity they're gonna.
Ultimately follow -- lockstep.
Okay let's talk about who else benefits.
To me an easy one might think -- for example that the New Jersey names but you tell me what do you feel is a real opportunity -- for people's portfolios were watching.
Right now well Boyd Gaming which actually reported results today out of Canada and a tough forth quarter stock -- -- roughly 14% but they have the -- got Atlantic City it's a well known brand.
-- we don't just say no we just have the president of Boyd gaming and the port got of course right there in Atlantic City everybody's saying this is a real opportunity they've been sort of at the forefront of doing things look where you can gamble from your hotel rooms.
In Atlantic City but -- -- weighting to it to sink their teeth to this opportunity.
Well it's a significant opportunity also say they got rid of Melissa long term money losing asset Las Vegas they sold their land parcel on strip.
Two company called getting out of Malaysia so that was a significant milestone they're gonna -- -- but again it got a bit of growth story here and other bricks and mortar casinos.
Will also benefit if the economy gets better Las Vegas is a big section of their business in terms a local's business out there.
That's been depressed for a number of years -- gets better -- as big beneficiary.
Now -- outside market of this which of course is Tito -- this is is the software companies that have to develop.
The kind of software planning that that these models are gonna need it's it's gotta be.
Very sophisticated stuff because you don't want anybody hacking into some of these software models what software companies might benefit from this.
Also any gaming equipment some.
Choirs will be covered the traditional companies like IGT that's probably your best play on this space I G three.
IGT there in the midst of that have a proxy battle currently -- they've got a multi prong.
-- -- online gaming approach to have a social gaming business called double down that's one of the top revenue producing apps on the on it.
I -- store.
-- -- they've got this offer capabilities to help casinos provide you know it into felt white label service so if Reuters on this other companies don't want adult rather -- provide.
Do you get the sense that New Jersey has any downside to this a cultural and of course there that the people out there who feel though there's a problem with with gambling addiction.
That's largely been addressed at least by by many regulators in the and the -- legal issues there but what is there a downside -- at this.
Is sometimes you don't wanna be the first member David there there's a risk but I think they're gonna -- out -- very clear regulatory framework I think they're gonna outside those protections to make sure that you.
Art in state resident and if you got to get any problems way to shut down your access.
I think they're gonna be on top of that and they're gonna tread very cautiously but you know being -- first river they're gonna capture that revenue and this is something positive for the state.
-- sentence thanks -- from Credit Suisse appreciate it thank you we'll talk.
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