Bwin.Party Gains 23% After DoJ Clarifies Their Interpretation of Wire Act

Published on December 29th, 2011 12:23 am EST

It was a very good day for Bwin.Party (parent company of Party Poker) today, as shares of the company soared nearly 23% on the London Stock Exchange.

The catalyst for the move? An opinion from Assistant Attorney General Virginia A. Seitz that the Wire Act only applies to "a sporting event or contest". This opinion came about after the Illinois governor’s office and New York’s lottery division sought clarification from the Department of Justice as to the legality of online lottery ticket sales.

This new opinion from the US Department of Justice is likely to clear the path for widespread intrastate poker in the United States, possibly as soon as next year.

Bwin.Party is seen to be well-positioned to take advantage of this development. Not only did the company clear up its issues with the US government a few years back (thanks to the paying of a hefty fine and immediate retreat from the US market after UIGEA was passed into law), but they have also been actively laying the groundwork for an eventual move into the US market. The company inked a deal with MGM and Boyd Gaming earlier this year, and they also set up an office in Los Angeles some time ago.

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Bwin.Party closed at 160.00 earlier today, which is still well off of its all-time high of over 1700 (pre-UIGEA).

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