World Poker Tour Bets on Web Gambling
"They were never going to make a ton of money producing
One issue WPT faces with its new online site is that the company will not accept bets from U.S. gamblers because of the murky legality. The U.S. Justice Department has said that online gambling is illegal in the U.S. Some companies dispute this notion, but WPT isn't taking any chances. Neither is Playboy (PLA), which recently announced it would launch an online gambling room but not allow U.S.-based play.
Estimates from analysts and online gambling companies say about 50% of online gaming bets come from U.S. consumers.
Thus, in essence, WPT's new Web site is missing out on half of the total market. But if the company can get just a small piece of that market, the growth could be impressive, proponents of the stock say.Last year, the online gaming market made $13 billion, according to Global Betting and Gaming Consultants. Assuming half of that originates from the U.S., that leaves about $6.5 billion that WPT could capture. "Everyone believes that the biggest growth opportunities are in the international market," says Steve Lipscomb, founder and CEO of WPT Enterprises. "The market is very ripe for branded sites to have a significant piece of the market."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV