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The long-term trend of higher gambling revenues looks secure.

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Roy Morgan Research has just released findings from its Gambling Monitor which outlines the breakdown of Australia’s annual $16.3 billion gambling habit. For investors, the research provides a handy insight into where gambling dollars are being spent.

Poker Machines

According to Jane Ianniello from Roy Morgan Research, “despite losing popularity over the past decade, poker machines still generate the bulk of revenue from gambling in Australia. This makes sense, as half of poker machine players qualify as heavy gamblers, compared to one in five gamblers overall.”

With the results showing poker machines accounted for a staggering 60%, or $9.8 billion of the $16.3 billion which Aussies spent on gambling in the 12 months to March 2014, it’s no wonder some of the ASX’s most profitable businesses have exposure to this industry.

One way to gain exposure to the demand for poker machines is via Aristocrat Leisure Limited (ASX: ALL) and Ainsworth Game Technology Limited (ASX: AGI). Both companies compete with each other to develop gaming content and provide services to gaming machine customers.

Casino Tables

When it comes to profiting from the $600 million (or 4% of the pie) which was spent at casino tables there are three options for investors. Echo Entertainment Group Ltd (ASX: EGP), Crown Resorts Ltd (ASX: CWN) and SKYCITY Entertainment Group Limited-Ord (ASX: SKC), each hold casino licenses in select cities around Australia.

Race betting, sports betting, Keno, lotteries and scratch tickets

In the 12 months to March, $5.4 billion (or 35%) of gambling dollars was spent on an assortment of other forms of gambling which could basically be summed up as punting! There are two listed stocks in particular which investors could take a closer look at if they’d like to gain exposure to these sectors: Tatts Group Limited (ASX: TTS) and Tabcorp Holdings Limited (ASX: TAH) provide a wide range of ‘punting’ products. Meanwhile for a niche exposure to online sales of lottery tickets, investors should investigate Jumbo Interactive Ltd (ASX: JIN).

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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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