Industry Financial Announcements Showing Good Results
At the coal-face of the casino industry, generally, people are far more concerned with the latest slot machine release or the latest poker tournament than the financial performance of the casino sector. It is, nevertheless a good idea to keep an eye on the state of affairs in this regard, and can often give a glimpse into the future and where things are headed.
The MECN Gambling Industry Index states that with industry financial announcements showing good results, this bodes well for the growth of casinos, both online and land-based, as well as the opportunities for players. In fact, the 47 gambling companies increased revenue collectively by 39% in the past year, and as an index, the Gambling index performed extremely well. The Gambling index grew more than many indices including the FTSE, Dow Jones and others.
Market Performance Sees General Upward Trend
The upper echelons of the industry performed very well according to the gambling industry financial announcements showing good results across the board. SportingBet stocks increased in value by 320%, and Wynn Casinos stocks by 181%, but apart from the leaders in the field, two thirds of the stock value of the 15 largest casino or gambling companies grew by 40% or more in the same time period.
This is obviously a good omen for the casino industry in general, but the online casino industry in particular. The fact that these companies are growing faster than the general economies of which they are part, is extremely good with respect to the future developments of the industry. There has been much investment into online casino growth, including the advent of mobile, virtual reality and smart watch sub-sectors.
The Particular Top Performers
Interestingly, despite the increasing legitimisation of online casinos and sports betting in the USA, 70% of the top performers in the gambling industry index were European companies. The modus operando’s of the European companies may end up being the ideal model in terms of success. This model is increasingly socially active and linked with fundraising or social initiatives, and a high level of support for players and participants.
Despite the industry financial announcements showing good results, not all companies did well. One of the losers has been William Hill. They took quite a knock in profits, and the current plan to close many of their high street shops is in response to an increase in duties on in store betting machines. Online revenues contributed virtually a third of the groups’ revenue in 2014 and this area of business, along with the mobile aspect has become the development target of the future. Already a hugely popular sports book app and mobile games are a growing part of their arsenal.
Indicators of the Way Forward
Another casino company who saw a decrease in business despite the general trend of growth was IGT. They reported a drop in income of 67%, although there was some optimism around the social casino arm which is led by DoubleDown. The fact that this growth section is similar to the European casino growth is unlikely to be more than pure coincidence. Online markets are certainly the way forward, and socially aware and active sites seemingly the leaders within this field itself.