Although the majority of products and services provided by businesses around the world are inherently cyclical, there are very few consumer sectors that provide an investment opportunity regardless of the economic cycle that the economy is in. One of these industries is gambling. Whatever the economic situation it is common to see people at a casino or betting hall. To diversify a portfolio, gaming is one of the interesting areas to invest in. Gaming itself is an active lobby that will not let it fall. One need not be a candidate for a gaming licence or even invest in a casino to raise a bet for this sector. Bond market and stock markets are a few ways to get exposure to gambling business.
Before investing in the market, let's learn few basic facts about the business. Gaming involves a host of betting options, such as betting on sports and races events, casinos, poker, as well as slot machine. These companies can be of two types: American-styled gaming that is modeled after destination based gambling and European-styled gaming, which includes retail betting shops. Due to the rise of internet-based gaming, a third type of gaming company has emerged which focus only online gaming. This includes both the providers of operating platforms and software and host gambling companies which provide gaming services to their customers on the internet.
Historically, all forms of gambling were considered illegal. Numerous illegal operators operated on regional level due to existence of strong market demand for the sector. This led to change in the way people view gambling and the governments of all countries have legitimized gambling labelling it to be leisure or recreational activity. This led to the widespread expansion of casinos (mainly in US) as well as betting stores (in Europe). With the changing times, new products were added such as slot machines, off-course betting, phone betting and ultimately to betting on the internet. While the majority of countries are which allow gambling are silent on online gambling, European countries have been the pioneers in the field. In 2000s, UK followed by Italy betflik and Spain legalised online gaming opening the way to new types of players on the market.
Although highly controlled Both land-based and online gambling have turned into lucrative business. Investors looking to invest in the gambling can invest in some of the companies which have their shares listed on the stock exchanges, for example William Hill. Additionally, a few gaming companies have bonds outstanding providing excellent chances for investors who invest in fixed income to get exposure to this sector. But, the industry is extremely regulated, subject to technological changes and has a high level of operational gearing. Investors should seek out financial advisers who will be able to access these potential risks of the bond, match it with client's risk-taking habits and offer recommendations for investment.
- 14 Visitors