The majority of the products and services offered by businesses around the world are of a cyclical nature however, there are a few consumer industries that offer investment opportunity no matter what business cycle the economy is in. One such industry is gambling. Irrespective of the economic condition there will always be a crowd in a casino or a betting hall. In order to diversify a portfolio, gambling is among the fascinating sectors to be invested in. The industry itself has a strong lobby which would not allow it to slide. It is not necessary to apply for a gaming license or invest in a casino in order to make an investment in this industry. The bond market and the stock markets provide various options for gaining exposure to the gaming industry.
Before venturing into investing first, it is important to know some 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 online.
In the past, all types of gambling were deemed illegal. Many illegal operators existed on the regional scale because of a high betflik market demand for the sector. This led to change in the perception of gambling activities 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). In the course of changing times the introduction of new products like slot machines off course betting, phone betting, and finally online betting. While most of the countries are which allow gambling are silent on online gambling, European countries have been the pioneers in this field. In the year 2000, UK followed by Italy and Spain allowed online gaming opening the way to new players to enter the markets.
Though highly regulated, both land-based gambling and online gambling have turned into profitable businesses. Investors looking to invest in the gambling could invest in some of the companies which have their shares listed on exchanges like William Hill. Also, few of the gaming companies have bonds outstanding providing excellent prospects for investors with 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 dangers associated with bonds, match it with client's risk-taking habits and offer recommendations for investment.
- 10 Visitors