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July 3, 2009 -
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CASINO NEWS
News of the Month...
Goldman Sachs Forecasts Big
Profits for Playtech in US
According to a recent report by Goldman
Sachs, if and when online gambling is regulated in the
United States, the financial giant forecasts Playtech,
Bwin, Party Gaming and 888 to benefit the most, with
Bwin and Playtech having the most potential in stock
growth and Business to Business (B2B) profitability. The
report elaborates that European online betting companies
should benefit greatly from liberalized US online
gambling laws, and that more B2B opportunities will be
available as opposed to Business to Consumer (B2C)
opportunities. In essence, however, it is the B2C that
ultimately drives the B2B. It's the online casinos that
draw in the the consumer traffic, but it's the software
developers that fuel the online casinos. B2B
opportunities would therefore essentially manifest in
the form of licensing agreements and technology
development. While the report attests that B2C would
clearly be the most accretive, Goldman Sachs forecasts
B2B as the "more likely route to market". What about the
other
casino software giants like Microgaming and Cryptologic?
Although they were left off of the report, it's a pretty
certain bet they will be vying for a fair share of the
U.S. market. In fact, OCS predicts that Microgaming will
be one of the top performers in the U.S. due to the
overall transparency of their operations and association
with eCOGRA. When regulation takes place in the U.S.,
more gamblers will enter the market - and more educated
gamblers at that. |