Good Results for World’s Largest Gambling Firm
Harrah’s Entertainment, the world’s biggest gambling firm, has had a very good first quarter. With the enactment of the Unlawful Internet Gambling Enforcement Act, the online gambling industry had to pack its things and leave the United States – leaving many gambling fans behind. The only option left for Americans is to use land based facilities to gamble, and that could explain the nice results for Harrah’s Entertainment. The gambling firm is reporting revenue of $2.6 billion and net profit of $185.3 million in the four first months of 2007, a slight rise from last year. People are probably taking a new interest into land gambling now that the online option has been canceled.
According to business analysts, the firm was expected to perform even better. The gambling firm made about 88 cents a share and not $1 a share as predicted. This is due to expensive marketing and operation costs that the company decided to invest in. There was much more money made during the first quarter of 2007, but some of it was already used by the firm. So, what’s next for the world’s leading gambling group? The company announced that World Series of Poker-branded events will be hosted in London. It’s important to keep a close relation with the European gambling public, especially now with the online casino industry storming Europe.
With the online gambling industry moving into the global market, the competition between land-based operations and internet gambling services has intensified. These results show that land-based gambling were unaffected by the change in the scenery, but again periodically reports have more to do with marketing then with real business. Good results are a great marketing tool and big firms now that. We will have to wait and see how the industry is cooping with the absence of the online casino world and whether or not it will really benefit land-based operations. Gambling fans might transfer their habit of playing online into a land-based passion or they could give up that habit all together.