If a company reports gambling winnings as earnings, what beta value does this company have?

When a company reports gambling winnings as earnings, it suggests that a significant portion of its revenue is derived from uncertain and risky activities, typical of gambling returns. In finance, beta is a measure of a stock’s volatility in relation to the overall market. It reflects the risk associated with the company's earnings stream relative to the market.

A beta value of 0 indicates that the company's returns are uncorrelated with market returns. Companies with beta values near zero are generally considered to be low-risk investments, as their performance doesn't fluctuate with market movements. In the case of a company earning money through gambling, its returns might be so distinct and unpredictable compared to traditional businesses that its beta could approach zero. This is because gambling winnings do not follow the usual economic cycles that drive most companies' performance, making the company less affected by market trends.

These characteristics justify the assignment of a beta value of 0, illustrating that the company’s volatility and its earnings are decoupled from conventional market behavior.