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Size of Online Gambling Industry

Page history last edited by JKoziol 10 years, 8 months ago

In August of 1995, the first virtual casino was launched by Internet Casinos, Inc. and was operated out of the Turks and Caicos Islands.  Since then the industry has boomed and become increasingly more difficult to track.  While the industry continues to grow, it is constantly evolving and the rewards are increasing at soaring hieghts.  The legalities of internet gambling differs tremendously from country to country.  Therefore, in an attempt to estimate the current revenues, profits and market trends we will first explain the laws within various countries.  Then follow up with each country’s top sites and configure a more in depth analysis of the size of the industry.

 

Internet Gambling, Laws and Top Sites Worldwide 

 

 

 

Source

 

 

 Top Vegas Casinos and Revenue Reports

 

 

1. Bellagio

2. Treasure Island

3. The Mirage

4. New York, New York

 

 

**Note, the Bellagio, Treasure Island, The Mirage and New York-New York are all part of MGM Mirage (NYSE: MGM) and in the fourth quarter of 2000, brought in a net revenue (including the various other casinos under MGG) of $1.1 billion.  

 

In October of 2008, MGM Mirage reported that their net revenue had dropped 67% in a year.  In October of 2007 their net revenue was $183.9 million and the net revenue in October of 2008 was only $61.3 million.

 

 

DIRECT TOP COMPETITORS COMPARISON  
 
  MGM (MGM  Mirage) LVS (Las Vegas Sands Corp) TRMPQ.PK (Trump Entertainment Resorts Inc) Industry
Employ­ees: 46,000 28,500 6,400 4.30K
Qtrly Rev Growth (yoy): -15.80% 4.30% -8.00% 8.00%
Revenue (ttm): 7.21B 4.39B 713.45M 245.54M
Gross Margin (ttm): 44.04% 36.93% 43.55% 43.86%
EBITDA (ttm): 1.75B 741.96M 98.22M 56.64M
Oper Margins (ttm): 13.54% 4.76% 4.93% 0.35%
Net Income (ttm): -855.29M -188.76M -185.99M N/A
Source

 

 

 

Key Facts

1- Gambling Laws vary from country to country, for instance, the Rushmore Online Casino does not report their revenue because they are located outside the US and are not required to. 

2- The industry has spread over to more countries over the past 10 years.

3- First online casino was run out of the Turks and Caicos Islands.

4- Internet gambling revenue in the US was $5.9 billion in 2005, according to Christiansen Capital Advisors (CCA).  

5- According to CCA approximately 23 million people gambled online in 2005, 8 million were US residents.   

6-Trends in the online gaming industry seem to be moving towards expansion of services besides standard gaming. Companies like Bodog (LINK), are venturing into new ways to generate revenue with side companies such as their music, talent searches, and blogging.  However, there is no doubt that the current economic conditions have played a large role in the current industry decline.  Land casinos are finding new ways to bring in customers including offering benefits packages to locals (such as free haircuts and complimentary desserts)

 

 

 

 

 

Source: American Gaming Association 

 

FUTURE GROWTH EXPECTATIONS: 

 

Internet Gambling Industry Growth to Reach $528 Billion by 2015

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