The last couple of years have been mixed for Amaya Inc. (TSX:AYA)(NASDAQ:AYA).
Acquiring PokerStars and Full Tilt Poker from Rational Group in 2014 was the good news. Together, the two platforms dominated the market with a 70% market share, and the company has also begun using the PokerStars platform to push other casino games and sports betting to interested gamers.
The bad news has been insider trading allegations. According to regulators, ex-CEO David Baazov tipped informants before the company made major decisions--including when it acquired Rational Group--who then profited when the stock went up. Regulators even allege this happened even after they begun investigating Amaya.
The company has done a nice job moving on from the issues. Baazov has been relieved of his CEO duties although he remains Amaya’s largest shareholder. Expansion away from the maturing online poker market continues. And perhaps most importantly, Amaya is making inroads into the U.S. market.
The United States banned online poker in 2011, an event the industry dubbed "Black Friday." But Amaya has been sneaking its way back in, including lending its platform to New Jersey for its online poker platform limited to state residents. Many feel the nationwide ban on online gambling will be lifted at some point.
The other thing affecting Amaya shares has been the strength in the U.S. dollar versus the euro. The majority of revenues are collected in euros while results are reported in U.S. currency. When the relationship between the two major currencies moves again to favor the euro, it’ll be a nice boost to Amaya’s bottom line.
