Product and Service

Companies included in card casino sector in gambling industry primarily earn revenue by hosting horse races and card games and by providing related service and activities.  


Demand for Product and Service

As indicated by the typical company data, the demand for card casino and horse racing gambling has been increasing largely in the past two years.

The Sector

Sector’s Current, Trend, Causes behind trend, and Future

Current and Trend
  1. Generally, demand for card casino and horse racing seem to have been increasing in the past several years as indicated by the increasing revenue of those games according to typical company data.
Causes behind the trend
  1. Local economy situation may be the major drivers behind the growth in revenue of those companies in this sector.
  2. Competition with other type of gambling and internet gambling and government regulation may be giving huge impacts.
Industry Future
  1.  Supported by favorable factors from macro-economy and demography, demand in this sector may continue to be strong but type of gambling matters.


General Financial Performance of Companies In the Sector

It seems that demand for products and service of companies in this sector, according to the typical company data, has been growing in a fast pace in 2017 and the trend continues in 2018 as indicated by the increase of average 10% in revenue of card and horse racing in 2017.
As the revenue increases from its core revenue resource in this sector, the gross margin, from the typical company data, seems to have been improved. The current typical gross margin is about 30% in 2017. The typical operating margin is now at about 9% with a SG&A as percentage of sales of about 21%.
The typical average Enterprise Price/ Tax-shield adjusted cash flow ratio is 24.

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