This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Two 'Lottery Tickets' That Just Might Pay Off

NEW YORK ( TheStreet) -- In Oregon, the state where I reside, if it weren't for the state-sponsored lotteries, there wouldn't be enough funds to take care of the services that the state provides. Every time someone participates in the Oregon State Lottery, the state government is a winner. That's because a healthy percentage of the money goes to create jobs, schools, parks and watersheds.

Perhaps most importantly of all, the money doesn't go anywhere else. It stays in, and is used for, the citizens of Oregon. More than half a billion dollars in profits moves through Oregon's economy every year, supporting projects big and small. So when people participate, they at least feel they're contributing to the well-being of the state in which they live their lives.

The business of supplementing state government income through lotteries has grown so large that there's even a non-profit organization, The Multi-State Lottery Association, that administers the games submitted by each member state. This is just a small part of the business of lottery games and electronic online gaming. There are billions of dollars to be made selling everything from lottery systems to online gaming to the casino gaming industry.

One of the publicly traded companies that is fully immersed as a global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations is Scientific Games (SGMS - Get Report). SGMS' integrated array of products and services are like a menu of almost everything that any lottery, online gaming business and casino on the planet would need and want to buy. This "menu" includes instant lottery games, lottery gaming systems, terminals and services, and Internet applications, as well as server-based interactive gaming machines and associated gaming control systems.

The gaming and casino industry has been soft in the U.S., but it's booming in places like China (Macau) and many of the Asian nation's that allow gambling.

Year-over-year revenue grew by 19% at Scientific Games last quarter. Yet the company has a large debt load and its profit margin slipped into the negative, although their operating margin (trailing 12 months) is a positive 12%. Evidently the situation at SGMS may soon be improving.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.75 -0.69%
SGMS $9.79 -3.50%
AAPL $94.80 1.20%
GOOG $692.84 -0.77%
TSLA $234.37 -3.10%


Chart of I:DJI
DOW 17,719.05 -172.11 -0.96%
S&P 500 2,057.92 -23.51 -1.13%
NASDAQ 4,756.0180 -61.5760 -1.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs