GBGC has conducted its annual revision of its two gambling indices, GBGC 50 and iGBGC, which track the share price movements of 50 largest gaming companies and ten largest internet gambling companies, respectively. To be included in the GBGC 50 index, the companies have to derive at least 35% of revenues from gambling activities.
In January 2013 the total gambling market cap (adjusted for the percentage of revenues from gambling) of the 50 largest companies reached US$239.9bn, or 30% more than in the previous year. The gambling market cap ranged from US$450m for the smallest company, Kingston Financial (formerly Golden Resorts), to US$34.5bn for the leader, Sands China.
The total gambling market cap of the ten leading igaming companies has reached US$8.8bn, 14.5% more than in the previous year. To be included in the iGBGC index, the companies have to be predominantly Internet based.
In both cases the companies performed much better during 2012 than in 2011. In January 2012 the total gambling market caps declined by 2% for GBGC 50 companies and by 8% for the top ten iGBGC companies. 2012 also showed the continuation of the trend which sees land-based companies (constituting most of the GBGC 50 index) outperforming Internet-based companies, unlike in the early years of the two indices. GBGC Gambling Statistics Gambling Indices Graph[/caption]
The value of the GBGC 50 index on 2 January 2013 reached 148 points (both indices were based at 100 at the beginning of 2005), more than 25% higher than a year ago.
The iGBGC index reached 289 points, nearly 17% more than a year ago.
As for iGBGC index, one component changed: Bet-at-Home.com, an Internet gambling operator which is part of BetClic Everest group, replaced Sportingbet, which is being acquired by William Hill and Gaming VC.
In the GBGC 50, the daughter company Sands China has replaced the long-time leader, Las Vegas Sands. Asian dominance is even more pronounced than last year, as seven of the top 10 companies are Asian facing and two more (LVS and Wynn Resorts) have Asian subsidiaries that overtook them by gambling market cap. The only exception in the top 10 is Australian company Crown Limited, ranked 10th.
US machine manufacturer, International Game Technology (IGT) was second in the index in 2008 and 2009 has now fallen back to 16th place. Greek gambling giant OPAP, third in 2010, is now in 22nd place.
Two UK bookmakers, William Hill and Ladbrokes, both climbed up, from 23rd in January 2012 to 17th place in January 2013 for William Hill and 26th to 21st for Ladbrokes, showing the UK gambling market’s relative resilience to the economic conditions.
Pachinko and pachislot producer, Sega Sammy, dropped from 15th to 23rd place (January 2012 to January 2013), while Universal Entertainment fell from 21st to 33rd place, showing the difficulties in the pachinko market.
We expect to revise the indices three times this year, as two deals were announced with both participants included in the index – Scientific Gaming’s acquisition of WMS Industries and Pinnacle’s buying of Ameristar. Also, Penn National has announced it will split in two companies later in the year.
Berjaya Corporation, which fell out of the GBGC 50 index, performed the worst, with the share price down 39% in the period from January 2012 to January 2013. Bwin.Party’s shares declined by 31% in the same period continuing the trend since the merger. Universal Entertainment was in the third place, with its share price down 30%.
The worst performer in the interactive index was the aforementioned Bwin.Party.