When Amaya Gaming spent close to $5 billion to acquire PokerStars and Full Tilt Poker, many experts predicted this would mean big things for the company. They were definitely taking a risk by acquiring these sites at such a high value, but the upside was enormous.
However, 2014 has not turned out as the upper brass of Amaya Gaming had expected. This was the year when Amaya made a splash in the United States markets. By acquiring these two sites, Amaya Gaming stock resumed trading on the New York Stock Exchange.
It appears these moves were not made without going through a few hurdles. The Canadian offices of Amaya Gaming were raided this month on suspicion of illegal securities trading.
The Canadian police, in partnership with the AMF, raided Amaya Gaming’s offices without any prior warning. There had not been the slightest inclination that Amaya was under investigation, and the raid was a complete surprise to both the press and the corporate world.
The AMF refused to divulge details regarding the raid, merely stating that it was an important step in their investigation into the company.
In order to appease shareholders and quash rumors, Amaya put out a statement saying that they were completely cooperative with the authorities. They also stated that no wrong doing had taken place at Amaya, which they hoped to prove over the next few weeks.
Despite their best attempts to calm shareholders, Amaya Gaming’s stock did not react well to this news. Their share price has been in consistent decline ever since news broke of the AMF’s raid.
Investors are concerned that the release of further details about this AMF investigation could send Amaya Gaming’s stock price into free fall. That would erode through almost all of the gains made earlier in the year, when the company bought PokerStars and Full Tilt Poker.