CryptoLogic (CRYP) shares will bounce if H.R. 2267 is passed

Back in 2005, before the UIGEA (Unlawful Internet Gambling Enforcement Act) shares of CryptoLogic Limited (NASDAQ:CRYP) were flying high, trading upwards of $30 a share.

Since then, their business has been crippled and shares have fallen all the way down to $3.43.

But there is light at the end of the tunnel for CryptoLogic, who is a software developer and supplier in the Internet gaming market.

First, mandatory financial services industry compliance with the regulations of the 2006 UIGEA act was delayed by six months to June 1st, 2010 

Second, Rep. Barney Frank (D-MA) has scheduled a hearing for his two poker-related bills for December 3rd.

Frank introduced two bills on May 6, H.R. 2266 and H.R. 2267, in his efforts to fight the UIGEA.

H.R. 2266 seeks to delay implementation of the UIGEA for one year. Banks must begin complying with the regulations of the UIGEA starting Dec. 1, but a joint petition filed in early October by the Poker Players Alliance, the National Thoroughbred Racing Association, and the American Greyhound Track Operators Association asked the U.S. Treasury Department and the Federal Reserve to delay that deadline.

Since those organizations filed that petition, more than 50 members of Congress have voiced their support for the delay, including “virtually every leading banking institution,” according to Pappas.

Frank’s second and arguably more important bill, H.R. 2267, also known as “The Internet Gambling Regulation, Consumer Protection, and Enforcement Act,” seeks to explicitly legalize and regulate the online gaming industry.

You can watch the hearing live on this Thursday, December 3rd at 10 a.m. on the House Financial Services Committee website.

Stockmasters, if H.R. 2267 is passed and internet gambling is regulated, expect shares of CryptoLogic (CRYP) to make a huge move upwards. Gentlemen, place your bets.