Caesars Entertainment Corporation Common Stock (NASDAQ: CZR) is having an incredibly strong start to the trading session this morning. However, if you go digging for news released by the company, you’re not going to find any. So, what’s the deal? Well, it all has to do with a Supreme Court decision that can have a direct impact on the revenue of the company. Today, we’ll talk about:
- The ruling;
- what we’re seeing from CZR as a result;
- and what we’ll be watching for ahead.
CZR Gains On Supreme Court Ruling
As mentioned above, Caesars Entertainment Corporation is having an incredibly strong day in the market as the result of a Supreme Court decision. Recently, the United States Supreme Court struck down a law that has been in place for two-decades. Ultimately, the law prohibited New Jersey from allowing sports betting at state casinos.
Nonetheless, CZR investors were excited when news of the ruling broke. The Supreme Court ruled 7 to 2 that this law should not be in place. As a result, the way may be paved for CZR and others in the industry to allow sports betting within their casinos. In a statement, Samuel Alito, US Supreme Court Justice, had the following to offer with regard to the ruling:
The legalization of sports gambling requires an important policy choice, but the choice is not ours to make… Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own. State legislatures are put under the direct control of Congress… a more direct affront to state sovereignty is not easy to imagine.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive, After all, if Caesars Entertainment Corporation does incorporate sports betting in its casinos, it could drive strong revenue. So, it’s no surprise that excited investors are sending the stock on a run for the top. At the moment (10:54), CZR is trading at $12.68 per share after a gain of $0.78 per share or 6.51% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CZR. In particular, we’re interested in following the story surrounding the company’s moves now that the Supreme Court has shot down the gambling law that hindered their ability to drive revenue from sports betting. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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