Online Gambling Is On The Rise
Published: Friday, August 26, 2005 Online-Casinos.com
ONLINE GAMBLING IS ON THE RISE, SAYS RESEARCH COMPANY
60 percent of UK population gambles
Online gambling is on the rise, and increased by 46 percent last year according to ORC's annual GamblerTrack study, which reveals that 60 percent of the UK population still participates in gambling.
Regarding the trend for major online gambling companies to launch IPOs, the study points out that pessimistic comparisons with the dotcom "bubble" that burst in 2000 are not appropriate.
Online gaming companies are trading at very high price-to-earnings ratios, more commonly reserved for blue chips with an excellent track record. The major difference between the two sectors is that the currently dominant firms such as PartyGaming and Sportingbet, generate healthy earnings returns and have good growth prospects.
However, most analysts concede that the current double digit growth rates are probably unsustainable and this is likely to trigger widespread industry consolidation.
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