After reports on the Malaysian company Genting predict the company to be a good bet on the stock market, comes an estimate that most US casino companies will see an average 15% rise in profits, following the 2004 rise of 36%. In London the ups and downs have been greater, with share values altering with each change in the prospective new Gambling Bill, and most brokers are recommending a ‘hold’ position rather than ‘buy’.

This year sees Las Vegas celebrating 100 years and visitors from abroad are likely to take advantage of the weak dollar and travel to the gaming mecca. Lower energy costs and continued growth in employment give the gaming industry a healthy glow. 2004 saw deals and mergers throughout the industry and there is expected to be less consolidation in 2005. The companies that should remain a good bet on the stock market are Harrah’s, MGM Mirage, Penn National and other quality names.

In Australia Ainsworth Game Technology has issued a profits warning over a delayed contract because of changes needed to machine software on an international order. However, the company maintains that sales are going well in Russia and the United States. Gaming shares in Australia are likely to be affected adversely by tightening smoking restrictions and an advertising ban.

Gaming shares worldwide should remain a good bet in 2005 for investors, as the industry expands with increased volumes in wagering and new jurisdictions on the horizon.

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