Online Poker Bill Could Send ELRA Stock Higher (ELRA BYD MGM)
By: staff reporter, John Bodger
Last Updated: November 08, 2011 - 9:25am EST

(NEW YORK) --An online poker bill out of the US Congress could send Elray Gaming, Inc, an online gaming company which is traded under the name Elray Resources, Inc (OTC:ELRA), higher as investors seek out plays that could benefit from any change in US gaming laws.

Ludlow Capital, a small cap equity research firm based in New York City, issued a note to their clients over the weekend that ELRA may be positioned to experience some strong upside potential on any word that the US Congress will take up an online poker bill to legalize online gambling.

With the US Congressional 'Super Committee' set to release their plan for budget cuts, and additional tax revenues, the prospects for changes in current online gambling laws have increased with support for such changes now being supported on both Democrats and Republican sides.

ELRA Opens US Office

In March 2011, ELRA announced it had established of a U.S. office for its online gaming division, Elray Gaming, in preparation for potential changes to U.S. gaming laws. This move by ELRA comes months in advance to the news that MGM Resorts International (NYSE:MGM) and Boyd Gaming Corp. (NYSE:BYD), also in preparation for the U.S. to legalize online poker, agreed to form a venture with the biggest listed Internet gambling company, Bwin.Party Digital Entertainment Plc. This just shows that the online gaming market sees some sort of changes in US gaming laws on the horizon.

Entry into Forex Trading

Elray Gaming, a pure play online gambling turn-key stock, is also expanding its online gaming portfolio to now cover online Forex trading under its international footprint. In addition to its online casinos, and poker websites, Elray Gaming will expand its operations into currency trading, which trades around $4 trillion each day world-wide.

As currencies fluctuate wildly on news out of Europe, US, and Japan, traders are finding big gains trading through the Forex market, and Elray Gaming will explore how to harvest this growing market. Areas to be explored are online Forex trading, turn-key platform solutions, and managed Forex accounts for institutional investors.

Mobile Apps and Social Networking

In addition, the Company is expected to develop, and or acquire, a basket of mobile applications and social networking sites focused on gaming, and fantasy sports area to broaden their investment portfolio. Information on these new ventures are expected to be released from the company in the coming weeks.
US Online Poker Bill

With the US 'Super Committee' set to release their plan later this month, the prospects of a possible bill to legalize online poker has increased. By legalizing and regulating online poker the committee would be able to use those additional tax revenues for their planned budget cuts. Since online poker would be a new industry, the Republicans would still be able to say they have stuck to their plan to not to raise taxes, as this would be the creation and tax of a whole new industry. This could position Elray Gaming well with their now offline Nuts Poker (www.nutspoker.com) to take some market share of this expected large regulated market.

Ludlow Capital did not issue a valuation target on ELRA, but did place it on its recommended traders list as potential mover on news out of the US Congress. ELRA was last traded at a price of $0.007 per share.

About Elray Gaming
Elray is an established Global Online Gaming entity which owns and licenses Gaming Intellectual Property, Gaming Domains, Trademarks and Player Databases. Operations are headquartered in Curacao, Netherland Antilles and maintain offices, representatives and support facilities in the United States, United Kingdom, Australia, South Africa, Mauritius, Israel and the Philippines. Elray's business model is to offer Internet Gaming Products to non-US players in jurisdictions where online gaming is permitted. www.elraygaming.com