Over 42% of Gambling Companies Have Experienced Reservations of Investors Purely for Operating in the Gambling Industry

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New report identifies ways in which the gambling industry can improve its investor relations.

A study completed by the consulting firm MECN takes a close look at what gambling/gaming companies could do to unlock international capital markets.

Currently many financial investors still are reluctant to invest in the gambling and gaming industry. According to investors the main reasons why investors keep out of the gambling industry, are ethical reasons and limited know-how about the industry. As many as 85% and 75%, respectively, of the investors surveyed pointed to these reasons in explaining why the financial community hesitates to invest in the gambling industry.

But many of these problems seem to be of the industry’s own making, however, as many gambling companies do not even see moral/ethical issues as highly relevant for investors (see exhibit). In addition, many gambling companies only offer limited company and industry information to investors, information that could dispel their skepticism. As Martin Oelbermann, author of the study, explains, “Only few company websites and annual reports offer information about the industry itself. In our view, such information is a must if investors new to the gambling industry are to be attracted”.

But there are also exceptions; for example, investor relations of William Hill, IGT, and Fluxx are ranked top among leading companies in the gambling/gaming industry, as an analysis in the report shows. Moreover, some associations, such as the American Gaming Association, have been exemplary in providing information and educating investors about the industry.

The results are based on a survey MECN conducted in the past few months. Over 100 investors and gambling companies provided insights into the current status of gambling investments, opportunities and challenges, and future investments. The study can be obtained at http://www.mecn.net

About MECN:

MECN is a network of experts on issues concerning the media and entertainment industry. Together they provide in-depth knowledge, analysis, and advice to global clients.

Contact:

Martin Oelbermann

Tel:+49(0)89-38356785

e-mail:pr@mecn.net

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Martin Oelbermann
MECN
+498938356785
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