A Complete Guide to Investing in Gambling Stocks
The online gambling industry remains hugely popular, with record revenues reported in many regions around the world. It continues to thrive, even in an uncertain economic climate, and it does this partly through ongoing innovation.
Digital platforms never stay still as there is serious competition within the market. Games and sports betting options evolve, and from a standard list of roulette, slots, blackjack and other card games, there are many new titles for casino players to explore.
Sports betting operators also innovate with new markets such as eSports. The ability to diversify helps the gambling industry to succeed, and that’s why it’s such a big draw for those looking to invest in stocks.
Your Essential Guide
In simple terms, a gambling stock is a share in any operator associated with the industry. That’s a basic introduction, but it’s important to be aware of the many different platforms within that wider definition.
Sports betting and casinos continue to dominate the market, but there are other types of online gambling for players to access. Bingo retains a huge following, and there are many operators who have set up specifically to provide options for this classic game.
Other gambling operators have lottery and keno markets as part of their platform. The highest density of companies within this market focus on sports and/or casino, but there are more options to consider, and it’s important to remember that when choosing your stocks.
Whether to Go it Alone?
The first step to consider with any investment is whether to access some outside help. Will you choose your own gambling stocks, or should you seek the help of a professional advisor with years of experience in the financial sector?
There are clear pros and cons attached to each option: If you outsource your investing to a third party company, you will pay fees that need to be factored into your portfolio. Your investments need to clear those charges before you can make a profit. A seasoned investment operator should, however, have in-depth knowledge of the markets.
If you have played extensively with sportsbooks and casinos, your knowledge will be powerful as you look to buy stocks. In these cases, it may be acceptable to make your own trades, but if you are new to the industry, consider outsourcing your purchases.
Who Owns Who?
A point that easily gets overlooked relates to ownership. You may be aware of a brand name, but cannot find them on the list of stocks and shares. This may be because they are held in the name of the holding company, which isn’t as well-known.
Certain owners run several different brands across the sports betting and casino industry, and it’s worth reading through a list before heading to the markets. Aim to understand who are the major players, and your investing task may be more straightforward.
Once you have your list, study the performance of stocks as you would for any type of investment. Consider trends and the path of shares over recent months. In regards to potential progression moving forward, there are ways to access vital information within the gambling sector.
Follow Industry News
There are many news outlets covering ongoing developments within the gambling industry. Much of the information contained within their digital pages could well be useful when buying stocks.
One of the key issues across the sector right now relates to legislation and regulation. In Ireland, for example, a new regulator has been appointed with a view to tightening the rules that will allow sportsbooks and casinos to set up in business.
Elsewhere, there are new rules in the UK relating to advertising and maximum stakes. Potentially, this could lead to uncertainty in these markets that initially causes a slowdown in revenue.
In other regions, countries are opening up their digital borders to online gambling platforms. Since the United States Supreme Court made changes to legilsation in 2018, individual state governments have steadily legalized sports betting. Fewer regions have allowed online casino play, but the situation is developing on a consistent basis.
With more states opening up, the industry is buoyant in the United States, and projections for growth over the next five years remain hugely positive. While there will never be any guarantees, those who study the industry press closely could give useful clues about the future progression of the markets.
A Diverse Market
There are options for gambling stocks right across the industry and it pays to take advice before making your own trades. Whether you ultimately outsource your trading to a third party company or you undertake purchases yourself, you need to be armed with as much information as possible.
At the very least, take all of these tips on board, and you should be strongly placed to make informed decisions for all stocks within the diverse gambling industry.
