UK gambling stocks drop after US DOJ opinion

Shares of British companies have fallen after the new opinion of the Department of Justice in the US.

UK.- British gambling companies took a hit on Tuesday after news regarding the status of online gaming in the United States emerged. The Department of Justice of the US reversed a 2011 opinion that puts online gaming under threat.

This new opinion could affect other forms of online gaming that have interstate deals. The DOJ said that it would delay the implementation of new restrictions for 90 days to allow businesses to adjust their operations. While originally only affected sports betting, it could now be applied to any form of gambling that crosses state lines. This would especially affect Nevada, Delaware and New Jersey, three states that legalised online gaming in 2011 and have an interstate compact for online poker.

UK bookies like Paddy Power Betfair, William Hill and 888 Holdings fell between 1.5% and 7% on Tuesday after the new opinion was made public. This new opinion could affect UK companies that have been in talks to move to the recently legalised sports betting market in the United States.

Companies like GVC Holdings and William Hill have already set up online betting platforms and sports betting deals with MGM Resorts and Eldorado Resorts respectively. However, it is still uncertain how much it could affect UK companies, and it will not be discussed until the US government returns from a shutdown and prosecution begins.