Bwin.party saw almost a 4% rise in share prices following a rumor that the company would split its holdings between regulated markets and those operating in areas where online gambling regulation is considered “grey,” the Financial Times reported.
Though this has yet to be confirmed by company representatives, some credence must be given to the speculation considering that bwin is preparing to enter the U.S. market via its partnership with Boyd Gaming and MGM in New Jersey. State gaming regulators are likely to scrutinize all facets of bwin’s operation and a company spin-off distancing itself somewhat from the unregulated side of its endeavors may be looked upon more favorably.
Just three months ago, Bwin.party made a move toward focusing on regulated markets by announcing that no new signups would be entertained from 18 European countries that were categorized as grey markets. A complete pull-out from those regions was not on the agenda, as players who had signed up previously were allowed to continue playing at PartyPoker.
Bwin.party CEO Norbert Teufelberger stated in March that the company’s New Jersey partnership that will run online gaming via the Borgata casino has the chance to grab a huge market share in the state. Bwin.party’s first quarter results for 2013 were not encouraging and the company hopes that brighter days are ahead in a regulated U.S. online gambling market. Yesterday’s stock increase was a step in the right direction.