Below is an excerpt from ISS ESG’s thought leadership paper “Are All Bets Off for Gambling Companies?: Online Gambling in the Time of COVID-19.” The full paper is available for download from the Institutional Shareholder Services (ISS) online library.
- COVID-19 has pushed gambling companies to focus their businesses more on online gambling operations.
- According to ISS ESG Sector-Based Screening data, entities incorporated in the United States dominate the number of those engaged in online gambling production, followed by the United Kingdom, Sweden, Italy and Germany.
- From an economic value added (EVA) perspective, ISS EVA data shows that several gambling companies have benefitted significantly from the increase in popularity and growth in the online gambling business.
- Responsible investors should be mindful of the potential for increased harm to consumers of online versus in-person gambling establishments.