The Supreme Court's ruling on sports gambling Monday will significantly boost the sales of several gaming-related companies, according to Bank of America Merrill Lynch.
The court upheld the legality of a 2014 New Jersey law permitting sports betting at casinos and racetracks in the state and voided the federal Professional and Amateur Sports Protection Act.
"The ruling paves the way for the states to enact legislation to regulate sports betting. Betting could commence this year in NJ followed by MS, DE, WV, OR and PA, with more states to follow in 2019," analyst Shaun Kelley wrote in a note to clients entitled "Supreme Court legalizes sports betting – Positive for regionals and gaming tech" Monday. "We expect operator margins to be low but see upside for all of regional gaming, while gaming tech could be a key beneficiary."