On OnlineGamblingBox we do not usually give investment ideas but this one off is due to Cryptologic. Over the years, the company’s Internet casino software has received numerous accolades from the likes of Gambling Online and Casino Player magazines. Most recently, CryptoLogic was named the iGaming Software Provider of the Year at this year’s UK Gambling Awards.
The Canada-based (but soon to be Ireland-based) e-gaming software developer, is Motley Fool’s favorite for the best international stock for 2007.
CryptoLogic regularly sports operating and free cash flow margins of approximately 20% and 30%, respectively. Add CryptoLogic’s small-cap size of $300 million — allowing plenty of room for growth — and you’ve got a solid foundation on which to build some booming returns. CryptoLogic provides one of the most trusted Internet gambling infrastructures available in a thriving international industry.
According to Global Betting and Gaming Consultants, the Internet gaming market is expected to grow from $12 billion in 2006 to $19.6 billion in 2010. To be fair, the new U.S. law banning Internet gambling will surely put a dent in those estimates, and only time will tell just how big the damage is. Either way, the data clearly shows that a worldwide demand to gamble online exists and that CryptoLogic will play a major role in meeting it — with or without the United States.
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