The majority of the products and services provided by companies worldwide are cyclical in nature however, there are a few consumer industries that offer an investment opportunity regardless of the business cycle the economy in. One such industry is gambling. Whatever the economic situation, there is always footfall in a casino or a betting hall. To diversify your portfolio, gambling is among the most interesting areas to invest in. The industry itself has a strong lobby which would not let it fall. One need not be a candidate for a gaming licence or make a bet in a casino to place an investment in this industry. The bond market and the stock markets offer a variety of options to gain exposure to gambling business.
Before you invest in the market, we should know a few things about the industry. Gaming is a broad range of betting options, such as betting on sports and races events casinos, poker as well as slot machine. These companies can be of two types: American-styled gaming which is modeled on casino at a specific location and European-style gaming that includes retailers that sell betting stores. With the advent of internet a third type of gaming company has emerged which focus only online gaming. This involves both the suppliers of operating platforms and software and host gambling companies which provide gaming products to customers online.
In the past, all types of gambling were considered illegal. Numerous illegal operators operated on local levels because of a high market demand for the sector. This led to a shift in the way people view gambling and governments across world legitimised gambling betflik as a recreational or leisure activities. This led to the development of casinos (mainly in US) and betting shops (in Europe). In the course of changing times new products were introduced such as slot machines, off course betting, phone betting and ultimately to online gambling. While most of the countries that allow gambling do not allow online gambling, European countries have been the pioneers in this field. In 2000s, UK followed by Italy and Spain allowed online gaming, giving way for new kind of players in the markets.
While highly regulated, both land-based gambling as well as online gambling have transformed into lucrative business. Investors who want to get into the gambling could invest in some of the companies that have shares listed on the stock exchanges, for example William Hill. Furthermore, some of the gaming companies have bonds outstanding, giving good prospects for investors with fixed income to get exposure to this sector. However, the sector is highly regulated, exposed to technological advances and has high operational gearing. Investors are advised to engage financial advisers who will be able to access these potential risks of the bond and match it to the risk appetite of clients and make recommendations for investments.