Three times bigger than Qantas, five times the value of Harvey Norman and worth 10 times what AMP is, gaming company Aristocrat Leisure could be the most valuable local company you’ve never heard of.
- Local pokie manufacturer Aristocrat wants to pay $5 billion for a ‘real money gaming’ (RGM) company
- The technology creates digital casino games played for actual cash
- Illegal in Australia, RGM could be a $70 billion market in the US alone
Now, it’s betting the house on a $5 billion acquisition that will put it at the centre of real money gaming (RMG) a controversial type of digital gambling that’s illegal in Australia.
“RMG is highly accessible, high speed, and at the moment there aren’t any limits on what you can bet,” says Dr Charlies Livingstone, one of the nation’s foremost experts on gambling and associate professor in the School of Public Health and Preventive Medicine at Monash University.
Charles Livingstone has studied gambling behaviour in Australia for decades, and is worried about what RGM could mean for consumers.(Supplied: Monash University)
“So you can do it anytime you want.
“It’s on an app, you get into it and you’re in a casino where you can bet on slot machines (pokies) and casino style games very rapidly, and bet an unlimited amount.
“And keep doing it for hours at a time until you run out of money.”
Most Australians wouldn’t know Aristocrat Leisure, even when it sits comfortably inside the top 20 biggest companies on the nation’s stock exchange, with a market capitalisation that values it at nearly $30 billion.
Colin Mansfield is a director in the US corporate finance group at Fitch Ratings. Even though he’s based in Boston, he keeps a close eye on the company, which is based on Sydney’s North Shore.
“Yeah, they’re really substantial,” …….