Greek Election Result Good For Gaming Operators

With the New Democracy party in Greece having topped the poll in yesterday’s election it is likely that a pro-bailout government will be formed and the spectre of a Greek exit from the Euro zone recedes or now.

While markets remained jittery analyst Daniel Stewart & Co. have issued a note stating that they believe the avoidance of a Greek exit is good for gaming operators.

Specifically Sportingbet, (SBT) which derives 13 percent of its net gaming revenue from Greece, and bwin.party (BPTY), which has a four percent exposure to the market.

The company said, “The avoidance of a Greek exit is positive news for SBT and BPTY in our view, as an exit and reversion to the Drachma would have an adverse effect on the operator’s Greek revenues. On our estimates for example an exit and reversion to the Drachma would likely halve Sportingbet’s Greek derived NGR translated into Sterling (GBP).

”We expect the news should be well received by the market and Sportingbet in particular… Though we expect both stocks should trade well off the back of the news and we remain buyers of both stocks.”

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