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TORONTO (CP) - Shares of Cryptologic Inc., an Internet gaming and electronic commerce software company, soared nearly 17 per cent Tuesday after the Nevada approved Internet gaming by casinos in the U.S. state.
Investors took a gamble on Toronto-based Cryptologic after the Nevada announcement, pushing the Canadian company's shares on the Nasdaq stock market up 17 per cent, gaining $3.89 to $26.41 US, as 1.9 million shares traded hands.
In Toronto, Cryptologic shares also jumped 17 per cent, up $5.75 Cdn to close at $40.50.
In Nevada, the so-called Silver State became the cyberstate as legislators approved the new gaming law, despite the fact the U.S. Justice Department says Internet gambling is illegal.
Experts estimate that revenues from Internet gambling - mainly done by offshore companies because of the U.S. ban - reached $1.5 billion US last year and could reach $6 billion US by 2003.
Nevada can claim to be the first, but not likely the last, to approve Internet gambling.
Currently, an Internet gambling bill introduced in the New Jersey legislature in January is stuck in the red tape of bureaucracy and won't likely come up before the legislature's summer break.
As lawmakers made decisions, Cryptologic continued to sign up new customers.
Late last month, Cryptologic announced new online poker software and signed up its first poker licencee, LasVegasFromHome.com Entertainment Inc.
Cryptologic has also released a rosy outlook for the next fiscal year. When it released its outlook for the year late last month, it said Internet gaming is expected to grow more than 35 per cent a year as more countries allow and adquately regulate Internet gambling.
For fiscal 2001, the company said it expects revenue to rise 20 per cent to between $41 million to $42 million US, and net income to range between $19 million to $20 million US.
Investors took a gamble on Toronto-based Cryptologic after the Nevada announcement, pushing the Canadian company's shares on the Nasdaq stock market up 17 per cent, gaining $3.89 to $26.41 US, as 1.9 million shares traded hands.
In Toronto, Cryptologic shares also jumped 17 per cent, up $5.75 Cdn to close at $40.50.
In Nevada, the so-called Silver State became the cyberstate as legislators approved the new gaming law, despite the fact the U.S. Justice Department says Internet gambling is illegal.
Experts estimate that revenues from Internet gambling - mainly done by offshore companies because of the U.S. ban - reached $1.5 billion US last year and could reach $6 billion US by 2003.
Nevada can claim to be the first, but not likely the last, to approve Internet gambling.
Currently, an Internet gambling bill introduced in the New Jersey legislature in January is stuck in the red tape of bureaucracy and won't likely come up before the legislature's summer break.
As lawmakers made decisions, Cryptologic continued to sign up new customers.
Late last month, Cryptologic announced new online poker software and signed up its first poker licencee, LasVegasFromHome.com Entertainment Inc.
Cryptologic has also released a rosy outlook for the next fiscal year. When it released its outlook for the year late last month, it said Internet gaming is expected to grow more than 35 per cent a year as more countries allow and adquately regulate Internet gambling.
For fiscal 2001, the company said it expects revenue to rise 20 per cent to between $41 million to $42 million US, and net income to range between $19 million to $20 million US.
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