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A Go-Getter’s Guide to Investing in Gambling Stocks

Author: Catherine Lysenko
29 July 2020, 15:32
Votes: 3

Investments are always a topic of interest for businessmen who want to grow their capital and make their money work for them. According to the latest data taken from European gambling news, the industry continues to develop, creating exclusive and profitable opportunities for investors.

A Go-Getter’s Guide to Investing in Gambling Stocks

As the data from the European Gaming and Betting Association and other sources show, the 2018-2019 revenue of the gambling market is approximately twenty-two billion euros. Its quarter, almost twenty-three percent, belongs to the online sector, while the other part belongs to the land-based market. Of course, the COVID-19 pandemic changed the 2020 turnover that had been predicted to reach twenty-nine billion dollars in 2022. At the same time, the world’s crisis caused by the coronavirus didn’t influence the number of opportunities for investors. Gambling companies still raise funds and generate considerable revenue.

Three reasons why it is profitable to buy shares in the gambling stock market

Casino share prices increased dramatically during June. The possibility of casino reopening caused this situation as investors got interested in the industry. When gambling establishments opened their doors for visitors again, it meant the return of profits for investors. Although casinos won’t be able to see and host the previous number of players, as it has been before the pandemic, the hopes are big that the industry is returning to normality.

In general, if to consider investing in the gambling industry without the coronavirus impact, it is always full of potential for future development. Here are three reasons why it is a good idea to become a gambling investor:

gamble stocks

  1. As we have already mentioned, the industry has an enormous number of opportunities. It continues to develop, adopting new technologies and innovations, marketing strategies, and niches. Virtual reality, artificial intelligence, and other trends make iGaming more and more interesting for players. As for the land-based casino industry, the situation is the same. Gamblers, who have been yearning for their favorite casino entertainment during the lockdown, want to return. It means stable and increasing revenue for gambling establishments.
  2. Under any conditions, the gambling industry is the one that always has money. Casinos are associated with a luxurious life, expensive hotels, resorts, and rich people. That is why this sphere will remain profitable forever, regardless of circumstances.
  3. The majority of European countries will take your investments with open arms. It won’t be difficult, and you won’t stumble upon many obstacles in comparison to other industries.

How to invest in gambling: stocks that can bring you millions of dollars

If you have decided to spend your savings on investing in gambling stocks, you should know basic information on how to do this. Investment usually means buying gambling companies’ stocks. The first step for an investor is to choose a company or several ones to acquire their shares. The second stage is to find a platform where you can buy shares online. It is the best and fastest method.

Investors can buy stocks with the help of brokers or independently. Many casino companies offer this opportunity without third parties’ services. However, usually, it is cheaper and safer to buy stocks with a broker. If you are afraid of risks, invest in several companies. It will allow you to get revenue from various sources but not to lose much in case of a company’s bankruptcy.

Questions to ask before investing in the gambling industry

Anyway, investing in the gambling stock market can be risky. That is why it is important to be well-prepared and know everything about the company and country where it is located. It will prevent you from financial losses and other unpleasant situations.

stocks gambling

Here is the list of questions that you should ask an expert, or you can get a consultation from the company’s representatives on these topics.

  1. What are the gambling regulations in the country? The first and the most important question touches upon the law. Many countries have very strict regulations for the gambling market that often become the main obstacle for increasing revenue. For instance, online gambling in Europe and the operation of virtual and brick-and-mortar casinos are under strict control. That is why European investors choose only reliable companies that comply with the legislation.
  2. What websites does the company own? The second thing is to examine all gambling company’s websites. A website is a reflection of a firm’s level. It should look professional and be up-to-date. Never spend money on online casinos that have poor design and gaming library. This market is very competitive and companies that are far from its top won’t exist for a long time.
  3. Is the casino’s reputation positive? This question is obvious, but investors frequently forget about it. Check casino review websites to understand the feedback about the casino. If it has a negative reputation on the web, it may turn into a lossmaking business one day. The same principle applies to land-based gambling establishments. 
  4. Is the company’s marketing strategy efficient? Find out how the company promotes its services and products. The right marketing tools are the key factor of success and big revenue. It is almost impossible to generate much revenue in the gambling industry without promotion.

The best stocks – gambling companies that can generate high turnover rates

gambling stock

So, what are they, these gambling businesses that are worth investing in? According to recent financial data and predictions, these companies’ stocks can be the most profitable for shareholders:

  • NetEnt – this casino software provider is among the leaders in the gambling market. High-quality NetEnt slot games have millions of fans worldwide. The stock price is 76.50 SEK.
  • GVC Holdings – it is the UK sports betting and gambling company that is included in the list of the biggest providers. Its 2019 turnover was estimated at 520 million euros. The company owns such websites as partypoker, bwin Casino, Gala Bingo Casino, etc. Its stock price is 712.20 GBX.
  • The Rank Group – it is one of the biggest casino operators in Great Britain. Even now, during these difficult for the gambling industry times, the casino could increase its revenue. It means that this company can be a safe investment. The cost of its stock is 141.17 GBX.

Read more: Platforms for online casinos: software providers to consider

Read more: How to calculate gross gaming revenue?

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