GBGC Stock Index Shows iGaming Outgrowing Land Based Gaming GBGC Stock Index Shows iGaming Outgrowing Land Based Gaming
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Key Takeaways
  • GBGC’s revision of its gambling industry stock market indices shows that iGaming company shares continue to outperform their land based equivalents.
  • The value of the top 50 companies—based purely on their gambling revenues—has reached $351bn, up 46% in a year.
  • The value of the top 10 internet companies is $15.4bn, a gain of 75% in only a year.
  • $5.7bn of that valuation is accounted for by Playtech. It is followed by Betfair, bwin.party Digital Entertainment, Betsson and Unibet.

GBGC’s revision of its gambling industry stock market indices shows that iGaming company shares continue to outperform their land-based equivalents.

GBGC provides data and consultancy on the global gambling industry and maintains two indices of gaming company share prices.

The GDGC 50 index tracks companies which receive at least 35% of their revenues from gambling, while the iGBGC tracks the ten largest internet gambling companies.

The Federal Reserve induced stock market boom of the last few years has pushed both indices to all time highs. The GBGC 50 is up 60% over the last year, while the iGBGC has gained 42.8%.

GBGC also calculated the market capitalization of the companies in the index, extrapolating from the proportion of their revenues which come from gambling. The value of the top 50 companies—based purely on their gambling revenues—has reached $351bn, up 46% in a year.

The largest company in the GBGC 50 is Sands China, followed by the Las Vegas Sands, which explains why founder Sheldon Adelson is now the 8th richest person in the world.

The value of the top 10 internet companies is $15.4bn, a gain of 75% in only a year. $5.7bn of that valuation is accounted for by Playtech. It is followed by Betfair, bwin.party Digital Entertainment, Betsson and Unibet.

Since the index start point set at 100 in Jan 2005, the GBGC 50 has grown to 237—that is, more than doubled—while the iGBGC has reached 406, a quadrupling. Notably, the iGaming company shares have quadrupled during a period that has seen the largest financial crisis since the depression, and the effect of Black Friday which largely closed the US market.