U.S. Investment Continues in Online Casinos Industry
An article on online casinos published last month in the New York Times by Matt Richtel has highlighted the increasing number of investments made by U.S. organizations in the online casinos industry. In his piece, Richtel wrote that although U.S. authorities are determined to preserve the illegal status of gambling at online casinos, gaming firms have become a solid investment area for top Wall Street firms.
Richtel’s article reports that investment houses like Fidelity, Goldman Sachs and Merrill Lynch are the owners of hundreds of millions of dollars in shares at online casinos, which trade publicly on the London Stock Exchange and are based in variety of offshore locations including the Caribbean, Gibraltar and Costa Rica. Richtel’s article has also highlighted the difficulty of policing international activity at online casinos in a global economy. However, he stresses that although the investment houses are not unaware of the risks involved in investing in offshore online casinos, they are alleviated by the benefits of owning shares in highly profitable businesses.
Nearly every major online casinos venture has part of its stock owned by a U.S. based investment institution. Over 14 percent of Sporting Bet shares are owned by Fidelity Management, while Goldman Sachs and Morgan Stanley hold large numbers of Bet on Sports shares. In general, the investment opportunities offered by online casinos firms are simply too good to miss. Internet gambling is expected to generate $12 billion in revenue this year, up from $8.3 billion in 2004.