Online Gambling Operator's Profit Potential Examined

Published Tuesday, September 04, 2012 -

A recent article in the Independent from the United Kingdom suggests that there is something special about the online betting exchange operator Betfair. The article is interesting in so much as it really looks at the expanding world of online gambling and the acceptance of this form of entertainment by the general public. Those who are opposed to this exchange idea look at the setbacks such a system could encounter in the regulatory online gambling universe and proponents of Betfair see nothing but pure potential and innovation.

Paddy Power recently had to give up Breon Corcoran to the Betfair firm who will benefit greatly from this executive's understanding of the available market potential out in cyber land.The article does indeed touch on a few other online gambling operators of some note such as William Hill and Ladbrokes probably the two biggest firms doing business online and off in the U.K.explaining why they are a good stock to hold.

The writer suggests there are things to consider when investing in the big more diverse companies with brand recognition as a big factor in the stability of a firm’s value. With so many online gambling operators competing for the same gaming euro companies such as Betfair and it exchange concept which is unique in the internet wagering world will do well attracting new customers. This idea of market watching trends is also explained when the article links sponsorship deals with football teams. The way to watch the value of a particular stock in an online sports book, is to watch how well the sponsored team is doing in league standings. The more people watching the winning team’s games the more new sign ups a particular betting company receives thus boosting the value of the company stock. Well in theory maybe but there are usually many factors that can affect a firm’s bottom line.

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