While economies around the world are struggling to stay afloat, some industries are dealing better with the downturn - particularly the global online gambling business.


In fact, according to gaming giant 888.com's chief executive Gig Levi, the more difficult the economy, the more likely folks are to stay at home and save money. In this digital day and age there is hardly a shortage of ways to amuse oneself in the comfort of your own home, be it DVD movies, television, or the Internet.

Although the online gaming industry is indeed booming, it has certainly experienced its more than fair share of ups and downs throughout its very short history. Only two and a half years ago, the American government suddenly outlawed betting over the World Wide Web, sparking a mass exodus of gaming operators out of the US market and towards what have since proven to be very, very, green pastures.

Of those firms that did abandon the US market, most experienced severe losses. But with the incessant demand for more casino games, poker rooms, bingo sites and online sports betting venues as robust as it is, things are looking up, way up.

Publicly traded online gaming firms in particular have been reporting staggering numbers. While there are plenty of investors willing to take a risk playing roulette, blackjack or Texas Hold 'em poker, the safer bets - say analysts - are on the gambling service providers and gaming software developers.

Leading online casino and poker room 888.com took a pricey hit soon after the US signed the Unlawful Internet Gambling Enforcement act (UIGEA) into law in early October 2006. Company officials claim they lost a whopping 50% of their business as a direct result.

The company, however, has since recovered extraordinarily well. In fact, 888.com is currently signing up more players than it did when it was still permitted to provide services to US-based players - an estimated 1000 each month.

The group released their annual results yesterday, exceeding the expectations of most analysts' bets. 888 shares closed at 150p, a rise of 3.25p.

Brokerage firm, Numis, is recommending that its customers buy the stock, declaring, "888.com's final results are 4.4% ahead of our [profit before tax] expectation and with Q1 seeing further growth we feel comfortable nudging up our full year 2008 [profit before tax] forecast by 1%."

Market analysts, Dresdner Kleinwort, agree with Numis saying, "Current trading is strong and as expected the continued growth of the industry means that macro-economic issues are largely irrelevant. We remain overweight on the online gambling sector."

In its attempts to offset the losses suffered after closing up shop in the US, 888 has been designating significant resources towards other gaming sectors, specifically online bingo games and sports betting. The organisation has also been redoubling its efforts throughout Latin America.

Results posted yesterday by 888 revealed a £45.8 million net profit, representing a 100% increase over 2006. In other words: Buy.