The Global Economy in Turbulent Times

CHAPTER 148 On Global Gaming, Aussie$, the SGX–ASX Merger¹

Just returned as a keynote speaker at the 2010 World Lottery Association (WLA) Convention in Brisbane, Australia. It’s a grand affair, attracting 800 participants from around the world, most of whom are involved in managing the lottery business worldwide. It also coincided with the Melbourne Cup. Enjoying this special event by having a small bet, experiencing the party atmosphere, and watching the big race has become part of Australian folklore. Mark Twain is often reported to have said of the Melbourne Cup in 1895: “Nowhere in the world have I encountered a festival of people that has such a magnificent appeal to the whole nation. The Cup astonished me!” An estimated 120,000 people did watch “the horserace that stops the nation” at the Melbourne track this November 2 sunny afternoon.

Global Gaming

In 2010, the global gaming market attracted revenues of between US$350 and US$400 billion, with casinos, lotteries, and gaming machines accounting for close to 85 percent share. The online component is beginning to edge up to 10 percent within the next few years. Here, the push is led by the Organisation for Economic Co-operation and Development (OECD) group, representing three-quarters of this business. The worldwide lottery business alone is worth about US$200 to US$240 billion, growing lately at below 5 percent a year.

Growth is, however, uneven—20 percent in Latin America and South Africa; 10 percent in Asia (23 percent ...