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.
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.
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.
In 2014 all the components of the iGBGC index remained the same, with only their order changing.
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.