Facebook Inc (FB): Can Online Poker Boost Its Top Line?

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Democratic majority leader Harry Reid has been working for years on passing Federal online poker legislation in the Senate. Being from Nevada, it should come as no surprise that Reid wants to make it law that online companies must partner with a land-based casino, like a Boyd Gaming Corporation (NYSE:BYD) or MGM, a shining example of special interest politics at its best (or worst), which means that Facebook Inc (NASDAQ:FB) is going to be giving away a portion of their proceeds to someone, another win for the land-based casinos should this get passed. Current state legislation in both Nevada and New Jersey has this clause as well.

The good news for MGM Resorts International (NYSE:MGM) and Boyd Gaming Corporation (NYSE:BYD) is that they are well diversified geographically throughout the nation, and should a patchwork of legislation require a land-based casino in their state, they are better positioned than their counterparts. Additionally, their name brands bring in an element of trust for gamblers, which is advantageous for all parties.

It’s not a matter of if, but rather when online poker comes to your state, except for maybe Utah. This will undoubtedly drive growth in Facebook Inc (NASDAQ:FB) and the casino revenue; the only question is how much, and this will largely be a function of the final legislation. Stay tuned, but don’t be surprised to get invited to play poker in the near future while surfing Facebook Inc (NASDAQ:FB).

The article Online Poker Now Legal: Who Wins? originally appeared on Fool.com.

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