Thursday january 22,2015 : 2014 WAS A BAD YEAR FOR LAND GAMBLING COMPANIES
$100 billion wiped off stock market valuations.
According to a report from Global Betting and Gaming Consultants, which monitors the gambling market, major industry companies around the world suffered more than $100 billion wiped off their stock market valuations between January 2014 and January 2015.
The consultant monitors market movements to produce its GBGC 50, which index tracks the performance of the world’s 50 largest gambling companies by market capitalisation from gambling activities.
It reports that the value of the GBGC 50 index fell by 28 percent from 237 points to 172 points over the year.
The gambling market capitalisation of the leading 50 companies was reduced by US$ 101 billion over the same period. The top 50 gambling companies had a gambling market capitalisation of US$ 249.8 billion at the start of 2015, down from US$ 350.9 billion 12 months previously.
The top 10 companies in the GBGC 50 index are dominated by Macau gaming stocks like Sands China, Galaxy Entertainment and SJM Holdings. Consequently, the poor performance of Macau’s gaming sector in 2014 (by Macau’s own stellar standards) has had a dramatic effect of the GBGC 50 overall, the consultant reports.
As a result, the US-based Las Vegas Sands has dislodged its sister company Sands China in Macau from the top spot in the index but the top 10 is still predominantly composed of Asian-facing gaming operators.
Global Betting and Gaming Consultants warn that if Macau’s casinos have another difficult year then the GBGC 50 index could continue its slide in 2015.