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Published on Wednesday, 22 February 2012 19:59 Written by Todd Shriber

New York, February 22^nd (TradersHuddle.com) – Did you know that global gambling revenue jumped 5.6% to a record $419 billion last year? That factoid comes courtesy of Global Betting & Gaming Consultants. This observation comes courtesy of us: Isn’t odd that an industry whose combined revenue would make it the 30^th-largest economy in the world if it were its own country only has one ETF? That’s right. For all the glitz and glamor of Las Vegas, there is just one ETF out there devoted to casino operators.

We’re referring to the Market Vectors Gaming ETF (NYSE: BJK). That’s right. Prominent gaming companies such as Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN), the two largest U.S. casino operators, are marquee names in just one ETF and that’s BJK. And even though the global gambling business is booming, BJK, which just turned three years old, still doesn’t garner much press.

That’s odd, particularly when considering the global nature of the gambling industry that we just mentioned. No longer is gambling all about Las Vegas. In fact, Macau, the former Portuguese colony that is now a territory of China, long ago passed Sin City for the title of the world’s top gambling destination. Actually, Las Vegas isn’t even in the second spot anymore. That honor goes to Singapore.

Along those lines, BJK is in fact quite useful in terms of giving investors exposure to gambling’s global nature. U.S. companies represent just over 37% of the ETF’s country weight. China comes in second at just over 18%. At 10.5%, Malaysia, another rising international gaming mecca, is the only other country to receive a double-digit allocation in BJK. All told, 17 countries are represented in BJK.

BJK is home to 53 stocks with Las Vegas Sands and Wynn combing for 23%, but MGM (NYSE: MGM) and International Game Technology (NYSE: IGT) are the only other U.S.-based companies found in BJK’s top-10 holdings. The rest are China or Malaysia plays.

In many ways, gambling is the epitome of a consumer discretionary play. Folks just aren’t going to cozy up to the blackjack table if they’re worried about their job security or how they’re going to meet their next mortgage payment. So it was no surprise to see BJK struggle mightily last year and the emerging markets aspect to this fund certainly didn’t help matters.

Then again, it is that discretionary view that has driven BJK higher this year to the tune of more than 13%. That’s far better than the returns offered by the Consumer Discret Select Sector SPDR (NYSE: XLY). Bottom line: If you’re bullish on the global economic recovery, it might just pay to be bullish on BJK.

The vitals: BJK has $102.6 million in assets under management and an expense ratio of 0.65%. The ETF is optionable and shortable.