report.)
"Bounceback" Investment of 2011: Online Gambling Stocks.
Profits of 10 to 1 Likely

When Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, it was a death sentence for American online gambling companies. Some executives were arrested, others fled the country and billions of dollars in market cap evaporated.

But Americans didn't stop playing online poker and roulette. Far from it. Millions continue to gamble online each day. In fact, online gaming is one of our few growth industries still left. The only the difference is that the money now goes overseas.

And it's a lot of money. Americans spend more on gambling than on music, theme parks, video games, movies tickets and all spectator sports combined.

Now, four years later, with budgets strapped because of severely depressed tax revenue, our government is desperate for new income. The latest figures show that the Feds could raise a stunning $52 billion over the next decade by taxing online gaming.

With the federal budget deficit at an all-time high, those billions never looked so good to the spendthrifts on Capitol Hill. Of course, first they're going to have to make it legal.

They took the first step just this month. The House Financial Services Committee voted 41-22 to approve a bill that would allow Internet gambling operators to be licensed, regulated and taxed. If it passes into law the global online market could triple overnight.

The United States is the largest gambling market in the world. Millions of U.S. gamblers who don't play online now because it's against the law will flood in and add billions to the existing $21 billion-a-year global online casino and sports book.

After all, it's a lot easier to play poker in your den at home than to fly to Las Vegas. Thousands of NCAA pools will move from the office to the Internet. Online gambling will boom.

We doubt it's long before Congress decides it's better to regulate and tax Internet gambling than to watch billions in revenues slip through their fingers.

When that happens, a handful of stocks are going to shoot up as much as 10 to 1. It's only logical, considering that these same stocks lost -90% of their value when the UIGEA passed.

Our favorite is an established U.K. gamer with the best chance to woo U.S. business. It is traded on the London Stock Exchange and we profile it for you in The Hottest Investment Opportunities of 2011, which comes free with a trial subscription to Game-Changing Stocks.