GBGC has completed its annual revision of the two gambling indices.

The two GBGC indices, GBGC 50 and iGBGC, track the share price movements of the 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.GBGC 50 vs iGBGC 2014 

GBGC 50 vs iGBGC 2014

At the beginning of 2014 both indices reached the highest levels in their nine-year history. On 2 January 2014, the GBGC 50 reached 237.1 points (both indices were based at 100 at the beginning of 2005), 60% more than a year ago. iGBGC reached 406.8 points, 42% more than a year ago. Both indices have now shown growth for two consecutive years.
In early 2014 the total gambling market cap (adjusted for the percentage of revenues from gambling) of the 50 largest companies reached US$351bn, or 46% more than in the previous year. The gambling market cap ranged from US$793m for the smallest company, Penn National Gaming, to US$56bn for the leader, Sands China.
The top ten gambling companies are the same as last year, albeit in a slightly different order. The top four positions are the same as in 2013: Sand China, followed by its parent company Las Vegas Sands, Galaxy Entertainment and Wynn Macau. The order has changed slightly for the remainder of the top 10, and Melco Crown Entertainment is now in the fifth position. Crown Limited, retaining tenth position, is the only company in the top ten that is not predominantly focused on Asia, even though Asian gamblers account for an important part of its revenues.GBGC 50 Index 2014 
GBGC 50 Index 2014
 The changes in the composition of the GBGC 50 index in 2014 reflect the mergers and acquisitions and spin-offs, which took place in the previous year. 
• The highest-ranking new entrant is Penn’s newly created REIT Gaming and Leisure Properties, which made it to the 24th position. 
• We have also included Berjaya Sports Toto Berhad for the first time, which made it to the 34th spot. 
The other three companies returned to the index after several years: 
• machine manufacturer Boyd Gaming is back after a year’s absence; 
• Multimedia Games Holding Company, a technology producer for Native American and commercial casinos, returned for the first time since 2006; 
• China LotSynergy Holdings, the lottery equipment manufacturer for the Chinese market, returned for the first time since 2011.
 
The new entrants replaced WMS Industries, which was acquired by Scientific Games Corp., SHFL Entertainment, bought by Bally Technologies and Ameristar, which merged with Pinnacle Entertainment. Great Canadian Gaming Corp. was also pushed out of the index, now taking 54th place, while Kingston Financial Group is now 56th.
During 2013 the best performer in the GBGC 50 index was Melco International Development, whose share price increased by 209% in the period from January 2013 to January 2014. The worst performer was Echo Entertainment Group, whose shares lost 26% of their value as the company lost its monopoly position in Sydney to Crown, starting in 2019. Its share price in the coming months will depend on whether they secure a licence for a new casino in Brisbane.
The total gambling market cap of the ten leading igaming companies has reached US$15.4bn, 75% more than in the previous year. 
To be included in the iGBGC index, the companies have to be predominantly Internet based. Amaya could be quoted as an exception to this rule, because the company started off in land-based gambling, but are quickly growing their online operations. The gambling market cap of the components ranges from US$193m for Bet-at-Home.com to US$5.7bn for Playtech.
In 2014 all the components of the iGBGC index remained the same, with only their order changing. 
Playtech remained the leader, followed by Betfair (4th in 2013) and Bwin.Party Digital Entertainment (2nd in 2013). Betsson, 3rd in 2013, is now 4th, followed by Unibet, which retained its position.
All companies in the iGBGC index showed an increase in the share price during 2013. Playtech was the best performer in iGBGC, with share price up 72.6% in January 2014 compared to a year ago. Betsson’s share price was up only 1.7% during the year, making it the worst performer of the interactive index. 
 
Read more about the global gambling market in GBGC’s 9th edition of the Global Gambling Report.