Shares in sports betting firms surged this morning after the US Supreme Court effectively struck down the federal law banning sports betting yesterday. A number of AIM-listed firms have shot upwards so far today with GAN (LON:GAN) up by 15.48% to 45.50p and Webis Holdings (LON:WEB) climbing 65% to 4.29p as of 13:20 BST.
It wasn’t just limited to the smaller firms either, with William Hill (LON:WMH) up from 276p before the decision was announced yesterday afternoon to 313.40p at today’s open, although the shares have fallen back a little this morning.
Greg Johnson, a travel and leisure equity analyst at Shore Capital, warned that the initial price movements may be a little over-exuberant and said that, “We suspect that the next few years are likely to be an investment phase with little meaningful profit contribution expected for operators”.