Deutsche Bank Bets on Online Gambling Growth

Published Sunday, June 21, 2009 -

A prediction "best play on medium term growth in the online gaming sector", from the German bank Deutsche Bank has made a few stock brokers who advised clients that Playtech might be a good bet are as happy as clams. The status of the online gambling outfit is based on recent news that Playtech is positioning its self to re-enter the USA market should the ban be lifted in that country. The report by Deutsche Bank also stated, the revenue surge will be driven by the acquisition of Playtech software by William Hill casino. The bank also said, "regulatory opportunities and expanding markets as playing a significant part in Playtech's future growth."

The report concluded, in most positive terms, "We remain Buyers of Playtech. Whilst it is not immune from economic weakness in its existing portfolio of more mature licensees, its cash-generative business model and leading position in the industry should continue to drive growth through a recession by adding new licensees and cross-selling more products,"

Deutsche Bank reported that it expects Playtech growth in 2009 to be made toward the second half of the year, but that "the pipeline of new licensees and product developments leads us to be positive on the medium term trading outlook as well." Another speculation in the report was that, Playtech will move up from London's Alternative Investment Market (AIM) to a main market listing over the next 6-12 months."

When talking about regulation, the bank said that it considers, "regulatory evolution as generating the most significant opportunities for gaining licensees as has happened in Italy", and that this will benefit Playtech because expanding in regulated markets is a strategic focus for the business. The bank went on to say "In this context, the US is the 'big one' and if efforts to legalise online gaming in the US are successful, that should throw up a considerable number of new opportunities as US operators seek to enter the market and will want a reliable software platform to do so,"

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