European gaming companies will find more growth opportunities in online gambling than traditional brick-and-mortar operations, said Moody’s Investor Services.
In Moody’s report titled “Gaming — Europe: Online Gamblers Will Drive Growth for European Gaming Companies”, the rating agency said the online gaming markets grew rapidly in 2014 to EUR36.9 billion, compared to EUR6.6 billion in 2003, and is expected to grow to EUR42.8 billion by the end of 2018.
“Gaming companies with a larger online presence are likely to see higher revenue and EBITDA growth over the next 12-18 months than those more focused on traditional land-based business” says Donatella Maso, a Moody’s vice president, senior analyst and author of the report.
“As the gradual shift online continues, mobile phone and tablet penetration rises, and fast-growing demand for online games increases.”
Moody’s also said the potential legalization of online gambling or further liberalization in some European markets and US states offer growth opportunities for large operators.