Gambling Highly Resistant to Economic Downturn

Gambling Highly Resistant to Economic Downturn

While an economic downturn is most definitely not a good thing for most of the people involved, there are some companies that benefit greatly from it such as people involved in repossession. Just as there are people that profit greatly from downturns, there are also people that seem to be highly resistant to downturns to the point where if they do suffer losses, those losses are really insignificant compared to the larger bulk of their business. In this second group of institutions you can place those involved in gambling.

According to most of the people involved in the study of psychiatry and psychology, it is quite natural for the human being to want to gamble. In other words, just as humans have the drive for eating, drinking, having sex and altering their mind, so too do they have a drive to gamble. Some human beings can keep this drive in check and rarely ever gamble, while others find ways outside of organized gambling in casinos and poker rooms to fulfill that urge. Still other humans have no control and these are of course the humans you hear about in all of the negative anti-gambling stories that the press prints on an almost daily basis.

However, according to most people, this drive to gamble is not something that goes away just because the economy has fallen on bad times. People may get rid of a trip to the movies or a vacation, but by and large if gambling is part of a person’s staple diet, chances are very good that they won’t change that diet just because of the economic downturn occurring where they live.

For online gambling institutions and their offline gambling counterparts, this represents very good news. When the stock market opened on September 18th, it appeared as though the market had gotten full wind of this idea as many people shifted their money into online gambling institutions. This shift of money was one of the larger upward swings of momentum that online gambling institutions have received in their history and in some cases the changes were almost as dramatic as the downturn that came with the passing of the Unlawful Internet Gambling Enforcement Act in 2006.

Looking specifically at online gambling institutions that are publicly traded in the United Kingdom, one would have to look far and hard to find a company that didn’t benefit and it is a task that would most likely not bear fruit even with a heavy effort. William Hill PLC, the company that owns William Hill Poker and William Hill Casino, saw its shares climb a very impressive 1.7% in just a single day of trading. At one point in the day its shares were actually up more than 7% before settling into that very respectable gain.

Ladbrokes PLC, the owner of online casino, sportsbook, bingo and poker operations, ended up gaining the same 1.7% after similarly being up more than 7% at one point during the trading of the day. Rank Group PLC, which is more involved in offline gambling through bingo halls rather than any form of online gambling, also gained in the stock market, ending the day off at a respectable 0.7% gain.

July 5, 2011 by : posted in Industry and Economy No Comments