The gambling industry has seen a lot of growth over the past few years, with better casino software technology and new regulations helping to make gambling online more accessible and enjoyable. Although brick-and-mortar gambling establishments have suffered, particularly with the onset of the 2020 global pandemic, online gambling has continued to grow and attract new people to online casinos and sports betting sites.
With over 1.6 billion gamblers globally, the gambling industry is now one of the fastest-growing in the world. According to Research and Markets, the global gaming industry is expected to increase by $32.54 billion between 2021 and 2025, with a 3.5% compound annual growth rate.
Considering the expected growth rate of the gambling industry, there has never been a better time to invest. Shares in the industry have already made big gains over the past year, especially those involved in online gambling. If you want to invest, we’ve picked this list of the top ten best gambling stocks to watch in 2021 and beyond.
The global gaming industry is expected to increase by $32.54 billion between 2021 and 2025, with a 3.5% compound annual growth rate.
Research & Markets
Esports Technologies Inc (EBET)
Esports Technologies is a firm established in Las Vegas that specializes in esports and competitive gaming online gambling. The company is recognized for facilitating esports betting, such as League of Legends. Founded in September 2020, the company is still very young but has a great chance to grow significantly as the Esports betting market continues to expand.
Even though EBET iGaming stock was initially priced at $6 per share, it quickly grew in value. It started at $21 and soared to almost $36 by the close of the market on opening day. Early investors in EBET shares saw a gain of more than 500% as a result of this.
Many people consider eSports betting to be a huge opportunity, and this was reflected in the early frenzy over EBET shares. The eSports betting sector is projected to be worth $1.8 billion out of the $443 billion global gaming market.
Red Rock Resorts Inc (RRR)
Red Rock Resorts, Inc is a global leader in the gambling industry. Video poker, slot machines, table games, and race and sports betting are all available at the company’s 21 land-based casinos and resorts. The business agreed to sell the Palms Casinos Resorts to Stations Casinos LLC for $650 million in cash in May 2021.
As one of three main casino operators in Las Vegas, Red Rock Resorts controls a significant share of the land-based casino market in the US. The organization has improved costs and maintained its balance sheet to deliver record margins recently. To reflect this, its share price has risen by more than 130% in the last year, rewarding investors.
While the gambling industry in Las Vegas may already be saturated and there’s a chance revenues will fall due to legalized online gambling in the country, Red Rock Resorts is still a safe gambling stock that has great potential to continue to grow.
Flutter Entertainment Plc (FLTR)
Flutter Entertainment Plc is an Irish bookmaking holding firm formed by the merging of Paddy Power and Betfair. Later on, the company would also acquire the Stars Group, including Poker Stars and associated sites. Although it was founded in 2016, the predecessors and subsidiaries, including Betfair, FanDuel, Sky Betting, and more, are much older.
The company is considered one of the biggest groups in online betting in Europe but also operates retail and online gambling services in the US and Australia. Flutter Entertainment’s revenue in the first quarter of 2021 was $2.05 billion, up 32% year over the previous year. The surge was fueled by an expansion in the company’s global online player base after the Covid-19.
The past year has seen a 5% decrease in the share price of Flutter Entertainment, but as one of the biggest companies in online gambling, it’s expected that the price will increase again over the coming months.
Gaming Innovation Group Inc (GIGSEK)
Gaming Innovation Group Inc is a Maltese iGaming company that provides its B2B partners with cloud-based product and platform services as well as performance marketing. Founded in 2008, the company previously traded as Donkr. Over the years, it’s been responsible for operating a number of online casino brands including Rizk and Guts casinos.
After selling most of its online gambling brands to Betsson in 2020, Gaming Innovation Group now focuses on B2B casino solutions. It has recently signed several partnerships with major brands, including Hard Rock Casino in Atlantic City, New Jersey, and many more.
The focus on B2B partnerships has allowed Gaming Innovation Group to make the most of the expansion of US online casino markets. As a result, its share price on Nasdaq Stockholm has increased more than 160% in the past year and has more room to grow.
International Game Technology Plc (IGT)
International Game Technology Plc, also known simply as IGT, is a multinational gaming software and slot machine developer. The company was founded in 1990 and has been providing video slots and online slots to casinos ever since. It is one of the biggest slot developers in the industry with offices in Rome, London, Las Vegas and Rhode Island.
Aside from slots, IGT also produces software for lotteries and sports betting and recently signed a partnership with the Western Canada Lottery Corporation. The deal sees IGT supplying the lottery with video lottery terminals, increasing it’s range throughout the country.
International Game Technology Plc reported $1.02 billion in revenue in the first quarter of 2021, exceeding projections of $876.18 million. International Game Technology Plc has increased by 195% over the past year.
Penn National Gaming (PENN)
Penn National Gaming Inc, based in Wyomissing, Pennsylvania, is a casino and racetrack operator. The company was founded in 1972 and today owns and operates 44 casinos throughout the United States and Canada, many of which are branded as Hollywood Casino.
Aside from being involved in land-based casinos, Penn National Gaming is also a part-owner of Barstool Sports, a digital media company that focuses on sports and pop culture. Penn National Gaming is also partnered with online sports betting and casinos in markets including Pennsylvania, New York, and Michigan.
Over the past year, Penn gambling stock has actually decreased by 6%, but the company has made some great partnerships and has a good chance of acquiring a significant share of newly emerging markets in the USA casino circuit. Its partnership with Rivers Casino in New York is particularly big news, as the New York sports betting market is huge.
Caesars Entertainment Inc (CZR)
Caesars Entertainment Incorporated is a casino and hotel company based in Las Vegas, Nevada. It owns and operates over 50 locations, including Bally’s Las Vegas, Flamingo Las Vegas, Rio All-Suites Hotel and Casino, and Harrah’s Las Vegas. As far as land-based casino operators go, there are few bigger.
The company was founded in 1996, and its subsidiaries include UK-based betting firm William Hill. Despite being focused on land-based casino gaming and sports betting, the company has recently moved into the growing online market in the US. Caesars online casino and sportsbook have launched in multiple states across the country.
The company’s net revenue in 2021 was $1.7 billion, rising 259.2% from the year before. Meanwhile, the value of its casino stock has also increased, up more than 60% in the past year. As a gambling giant, this is a safe stock to invest in that will continue to grow as the US online gambling market expands.
MGM Resorts International (MGM)
MGM Resorts International is an American global hospitality and entertainment corporation that owns and operates Bellagio, Mandalay Bay, MGM Grand, and Park MGM resorts in Las Vegas, Massachusetts, Detroit, Mississippi, Maryland, and New Jersey.
Founded in 1986, MGM Resorts is now one of the biggest gambling companies in the world, with revenue of $12.9 billion in 2019. The company has built an impressive portfolio of land-based casinos across Las Vegas and New Jersey but has recently launched its own online gambling platforms too.
Based on the continued success of its land-based casinos as well as the development of online services such as BetMGM, this is one of the top gambling stocks available. MGM shares increased 91% over the past year, and the growing online gambling market in the US presents an excellent opportunity for profits.
DraftKings Inc (DKNG)
DraftKings was founded as a daily fantasy sports platform in 2012, allowing users to enter competitions with their friends. The company has expanded over the years, and when sports betting was legalized in the US in 2018, it launched its first sports betting platform.
The company recently became the official sports betting platform of the NFL and the UFC, allowing it to gain increased brand exposure and helping to place it as one of the best-known betting companies in the country.
DraftKings has established itself as a market leader for online sports betting in the US, but the company’s share price is down over six months and only up 7% over the year. Considering the growth potential of the company, its sports betting stock price could yet break out and significantly grow over the next few years.
Evolution AB (EVO)
Evolution, formerly known as Evolution Gaming Group, is one of the top casino software providers founded in Sweden in 2006. The company is best known for producing innovative live casino games, which were previously much less common due to limitations in technology.
Today, most major online casinos offer live casino games, and Evolution remains the biggest provider, having bought out its main rivals, Ezugi games. Evolution also acquired slot developer NetEnt, making it the biggest online casino provider in the industry.
In a relatively short space of time, Evolution has become one of the best-known casino developers and has won multiple awards for innovation, with Evolution casino games being found at practically every casino with a live casino. Its share price has increased by more than 1000% over the past five years and by more than 100% in the last year. As it continues to supply games to online casinos and enters the US market, the Evolution Gaming stock has a lot of potential to grow.
Final Thoughts
The gambling industry represents an excellent opportunity for investors. As the legal gambling market grows in the US and South America, there’s a lot of potential for companies that are looking to grow. The gambling industry is expected to grow by 3.5% between now and 2025, but this is likely a conservative estimate. The growth of the companies on this list shows that choosing the right gambling stock can be an excellent investment.
FAQ: Gambling Stocks
Will gambling stocks go up?
Although it’s impossible to say with certainty whether a stock will go up, the current research suggests that the industry will continue to grow. Most stocks in gambling are predicted to increase over the next five years.
Is investing in gambling stock legal?
Yes, buying stocks in gambling is legal on the stock market. Lots of major gambling companies are listed on the biggest stock exchanges and are legal for investors to buy.
What is the best casino stock to buy right now?
It’s hard to say with certainty what the best stock is, but many would consider MGM Resorts, DraftKings, or Evolution to be among the best based on their recent performance and future predictions.
Is investing gambling?
Investing in stocks entails putting your money at risk. When you invest in a stock, you could gain money or lose money, which makes it similar to gambling. In most cases, the risk is a lot lower, and you can do research to give you a better chance of making a profit.
References:
NASDAQ, 2021
Yahoo Finance, 2021
Insider Monkey, 2021
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