Creator Capital Ltd Ord CTORF

Gamblers Keep Betting

[warrenbuffet99]

- NATIONAL Gamblers keep betting giant out of the red By Cosima Marriner Consumers might put off buying a new car or another piece of clothing, but it seems we always have a bit of money left in the piggy bank for a punt. Ross Wilson, the chief executive of Star City Casino owner Tabcorp, told shareholders at yesterday's annual general meeting in Melbourne that they could expect double-digit profit growth this year, despite the uncertain economic outlook. In the wake of September 11, any company still willing to make a concrete financial forecast has tended to err on the negative side. But gaming and wagering companies such as Tabcorp have shrugged off the economic malaise and are enjoying continued growth. Tabcorp's revenue is up 5per cent on this time last year. "Assuming we can hold our revenues - I don't see why we can't ... we do confidently predict we should be able to achieve double-digit profit growth this year," Mr Wilson said. Tabcorp made a $188 million profit last year and booked revenue of $1.8 billion. A UBS Warburg analyst, Anthony Aboud, said banking on Australians' passion for a bet is a good gamble. "I think Australians see wagering as part of their core spending. Historically gambling has proven to be resilient to any economic downturn," he said. Gambling turnover across Australia has grown every year for the last 20 years and shows no sign of slowing. Tabcorp, which holds the exclusive Victorian licence to sell totalisator bets on horse racing, reported that the wagering - betting rather than playing poker machines - component of its revenue was up 7 per cent. It says this year's racing Spring Carnival is shaping up to be the best in history. Record attendances and record betting turnover at both the Cox Plate and Caulfield Cup bode well for next Tuesday's Melbourne Cup. Ross Ferrar, president of the poker machine manufacturer's association, said the prospect of winning money could prove even more alluring when times are tough. "Gambling is all about taking a bit of a punt about changing your circumstances ... giving yourself an assured future, which usually means money," he said. "Following September 11, people even more so want to put themselves in an impervious position." Commonwealth Securities chief economist Craig James agreed. "A bit of a flutter, whether it happens to be at the races or on the poker machines, seems like a modest outlay for a bit of fun in these difficult times." This national pastime is to the benefit of gaming companies and their shareholders. Tabcorp's share price has soared 23per cent since the terrorist attacks in the United States to close at $10.25 yesterday. NSW TAB's share price has bounced in a similar fashion, up 24per cent to $2.92. TAB Queensland shares have risen 19per cent since September 11 to hit a record high of $3.07.

[Kingbee3]

Even more so in China. Illegal gambling is multi-trillion dollar business so it's nice to see it legalized by The People's Republic of China and Creator getting a major piece of the pie. This IS only the start!