YOUBET.COM INC (UBET) 2.90 $0.10 (3.57%) 10:53PM (15 mins delay)

Youbet.com: Online Gambling Sees Potential Catalyst as Las Vegas Reels

Oct 29, 2009 - 6:58 AM EDT

A WSJ/Dow Jones article is reporting that a bill to lift online gambling is making progress in Congress and viewed as a means to help fill empty government coffers:

• Online gaming could "raise nearly $42 billion for the U.S. Treasury over the next decade, according to an analysis conducted by a non-partisan congressional scorekeeper."

Along with other gaming companies, Youbet.com (UBET, $2.08) supports the measure as a means to expand the company's Internet platform (and clearly valuable, apt domain name) into new areas beyond horse racing. While some investors are concerned about potential cannibalization for Youbet's core horse racing business, we see somewhat distinct market opportunities that should lead to a much larger addressable market for the company. Thus, any news on this front could prove a positive catalyst for the stock, although timing/ execution related to potential new business lines remain unknown and, therefore, not factored into our valuation.

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Source: Seeking Alpha (Oct 29, 2009 - 6:58 AM EDT)