Multimedia Games Holding Company Inc (MGAM), SHFL entertainment Inc (SHFL): Is It Time to Place Bets on the Gambling Supply Chain?

In FY2013, Bally Technologies Inc. (NYSE:BYI) has reinvigorated its growth trajectory, with increases in revenues and operating income of 15.6% and 30.8%, respectively, versus the prior year period. The company achieved double-digit sales gains across its business units, led by a 17% jump in equipment sales. The convergence of slot machines and server-based networks plays into Bally’s technology expertise, exemplified by its Cash Connection networked game product that enjoyed record unit sales during the period.

The bottom line

As casinos look to remain efficient and attract new customers with the latest high-tech equipment, they are looking to their favored equipment suppliers capable of operating anywhere around the globe. These three gambling equipment suppliers are expanding their industry market share with innovative products and should be able to drive higher profits for investors, assuming continued growth for the global gambling industry. While spending time in a casino is generally a bad investment move, buying these suppliers could be a good bet for investors’ portfolios.

Robert Hanley has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Is It Time to Place Bets on the Gambling Supply Chain? originally appeared on Fool.com and is written by Howard Cranford.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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