Gambling companies look abroad for growth

February 27

With the recent $15 billion succession of merger deals involving the U.S. gambling industry, few deals are left to be possibly completed here, so gambling's top executives are poised to look across the pond and beyond to enhance growth.

In the past few years, the growing popularity of gambling and the simple fact that the Las Vegas strip is raking-in record earnings has spawned so much demand for growth. Because so many regulations here limit where casino operators can expand and to what degree they can grow, many say that both further purchases and new branches are required in other countries in order to keep moving forward.

As it is well known, mergers in the gaming industry blew-up last year. Notably, the MGM Mirage's conquest of Mandalay Resort Group, and Harrah's deal to purchase Caesars Entertainment Inc.

Now, the subject at hand is where the largest contenders will go in order to develop next, and whether they'll coincide with competition from hotel and restaurant companies and private equity firms waiting in the wings to capitalize on the gaming industry's growing strength.

Most all of the major players are spending plenty of time investigating opportunities for expansion overseas.

The British Parliament is expected to approve a pending bill that would permit Las Vegas-style gambling in Britain.

Unlike the US, Britain already permits online gambling and online casino companies.