Global Betting & Gaming Consultants produce the GBGC 50 an index of leading stocks and shares in the gambling industry according to market capitalisation. This last year the index has doubled in value.

Global Gambling Stocks Beat the Odds


The value of the world’s gambling business has soared according to Global Betting & Gaming Consultants who track the largest 50 specialist gambling companies in their index the GBGC 50 (please see summary information attached). The market capitalisation of the top 50 stocks has risen nearly 75% during the last 12 months reaching US$76.4bn with 17 of the component stocks now having a market capitalisation of in excess of US$1bn. During the same period the FTSE has risen 21% and the Dow by 34%.

“There has been an amazing surge in value this last 12 months and it is for two reasons. First of all the on line business’s are doing much better. There are more homes on line, waiting time through broadband has been significantly reduced and people are finding the Internet saves time and offers value for money.

Secondly the major UK companies have moved ahead because of the improved fiscal regime provided by government along with the prospects of new gambling legislation that will benefit the casino industry. To a certain extent the UK companies have pulled the others along with them”. Said Warwick Bartlett GBGC’s lead partner.

In terms of the specialist Internet stocks sportsbooks such as BetandWin (bwin.v) and Sportingbet (sbt.l) did particularly well. In the former has led the field over the last 12 months with an incredible up swing of in excess of 6 fold!

Technological based suppliers to the industry have also faired well. International Game Technology (IGT), the world’s largest company has led from the front, improving its value by almost 100% from US$6.8bn to an incredible US$13.6bn.

The stellar UK performer was William Hill plc (wmh.l) who has moved from 10th in the index to 4th place and 101st in the FTSE 200 with a market cap of US$3.7bn.

UK bookmakers had told government that their gross profits tax initiative would enable the UK gambling industry to become as valuable to the UK as the Lloyds Insurance market (Lloyds insurance premiums for 2002 were £13.2b). Customs and Excise have just revealed that betting stakes for 2003 were £26b.

A three-fold rise from £8 billion in 2001.

“The UK gambling industry and in particular the bookmakers have lived up to their promises to government” said Warwick Bartlett.

NB. The GBGC 50 is calculated on the market cap of companies in US dollars thus non-US quoted companies have benefited by the recent decline in the value of the US dollar.

Warwick Bartlett and Simon Holliday lead Global Betting & Gaming Consultants Ltd. The consultancy provides top-flight management consultancy to the gambling industry and produces the 700 page Global Gambling Report and the GBGC 50.