
Originally Posted by
dendrite
Cryptologic are a publicly listed company, so I'll find it interesting to see how these jackpot wins affect their share price, if at all - wonder if the shares will respond well because of the publicity orbadly due to lost money?
It's a progressive, so the money is not from the casino's bottom line, but from incremental contributions from players who have chased the jackpot. It would be different if some whale had taken millions from the Blackjack tables, as this would severely impact on profits for the year.
A single big win, however made, should not reflect badly on the share price of a WELL RUN casino business, as those that study this sector know full well that cashflows and year on year profits/losses can vary considerably more than with other types of business, hence they look at longer term performance. A drop in TURNOVER is what will worry city analysts when it comes to casinos, as this means a fall in the amount wagered. This happened when UIGEA was passed. Shares fell in online gambling companies even before many decided whether to pull out of the US, this fall was based on the fact that a large percentage of the online players would either quit, or would be ditched by the companies. As it turns out, public listed companies had to pull out of the US market, and some even pulled out of Canada.
Crypto casinos do not serve the US, and are expanding in the EU, where the market is expanding, thus the good publicity surrounding these big progressive payouts are more likely to improve the prospects for the share prices, and this makes it highly unlikely they will mess around about paying it out.
Empty Fruities Astern Capt'n
Back to port for unloading.
Full Sails - before we get raided ourselves.
Bookmarks