Over the past year Amaya Inc. (TSX:AYA) has gone from a small, no-name brand to the owner of some of the largest online gambling destinations around. That deal, which resulted in Amaya owning PokerStars and Full Tilt Poker, cost US$4.9 billion, but put the company in a position to dominate the space. However, while Amaya currently owns two of the largest brands, it is working to make more deals happen.

Amaya has teamed up with GVC Holdings to buy Bwin.Party, another online poker website, for US$1.4 billion. Should this occur, it would give Amaya even more of the market than it already has. This puts the company is a really lucrative position should the one remaining barrier be broken for the company.

U.S. regulations

The federal government of the United States does not allow online gambling. While some states are starting to experiment with it, it is illegal in any state that doesn’t have specific rules in place. Because of this, Amaya is forced to look south of the border, but it can’t actually start generating revenue there.

However, there is some movement by some states that are vying to generate additional tax revenue. The hope that these states have is that by legalizing online gambling, they’ll experience a similar phenomenon as Washington and Colorado have since legalizing marijuana. By allowing marijuana, the states reap the benefits as much as the business owners.

And legalizing online gambling is a really big business for Amaya. Online sports betting is considered illegal, along with gambling with games such as poker and slots. During March Madness in 2011, it was estimated that $12 billion was bet on the games. While some of that went through legitimate sources, quite a bit of that money flowed into the hands of illegitimate individuals. Should Amaya gain access to that revenue, the company will explode in value.

What about the insider trading?

The company is currently under investigation by the Autorité des marchés financiers (AMF) because there is some belief that the PokerStars and Full Tilt Poker acquisitions were not entirely ethical. However, the AMF has yet to publicly admit that it has found anything, which can both be a good and bad thing. On the one hand, if the AMF had found something, it would prosecute. On the other hand, the fact that the AMF is looking could mean that it is following a trail that will lead to prosecution.

While we don’t know what will happen, I am pretty confident Amaya is going to be a long-term tech-growth stock here in Canada. And if the United States can get its laws figured out pertaining to online gambling and sports betting, there are billions of dollars in yearly revenue that Amaya could benefit from.

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Fool contributor Jacob Donnelly has no position in any stocks mentioned.