Gambling Stocks – Where to invest in?

Gambling is one of the largest industries globally, with 1.6 billion participants worldwide. From the second half of the 20th century, the digitization process began in the market which increased the users as well as the overall amount of money spent in the gambling industry by 11%. This is why gambling companies have grown a great deal in recent decades.

Besides, gambling has become more legalized and licensed in most countries which also had a huge effect on the industry's economic growth. 
 
After the middle of the 20th century, the market size has started to reach the highest points with a value of 227 billion U.S. dollars. The gambling industry has never stopped growing since then; what’s more, it becomes larger each day.
 
The four most important and well-known companies in the gaming industry that need to be mentioned are

• MGM resorts
• Flutter entertainment
• Draftkings
• Wynn Resorts.

These are the gambling shares on the stock market that play an enormous role in developing the gambling industry. The recent statistics show that they have a very growing performance. In this article, we will further technically analyze those companies and discuss why they are the stocks that are worth investing in.

The four major gambling stocks to invest in

The gambling industry is changing rapidly in today’s world. Even though Covid-19 hit the casino business in 2020, online gambling still retains its strength alongside sports betting. Fun will always remain monetizable, which is why the gaming industry is such a great target. Here are four major gambling stocks that are exceptionally well-performing or full of potential.



 

MGM resorts international

MGM resorts international is a hospitality and entertainment company that operates in America as well as in other countries internationally. The company offers its clients sports betting and online gaming options with one of the leading brands, such as BetMGM and partypoker.
Even though MGM resorts operate internationally, its main focus is concentrated in the USA. There are several reasons why this is considered to be the best online gambling stocks.
 
If we look at the actual numbers, we can see that total revenue has experienced a huge increase over the last 5 years. For example, the revenue of the company in 2015 was $9.1 billion while the revenue of 2019 was 12.7 billion. This indicates that every year the company was growing sustainably. According to the latest statistics, they had 17% of the market share in the US alone.  So it’s almost guaranteed that they will be profitable and will generate a lot of revenue in the future as well.
 
Besides, if we look at the estimate, in 2021 the growth is predicted to be 12.4%, and the next year in 2022, it is expected to be 109%.
 

Flutter entertainment

Flutter entertainment is a sports betting, gaming, and entertainment company that operates all over the world. It also owns other businesses such as PokerStars, Betfair, FOX Bet, and TVG, an online horse and greyhound racing television network. The company is worth $39.7 billion.
 
While talking about the online gambling stocks it should also be mentioned that the company has a market capitalization of 20 billion GBP. Overall, the company has managed to show some impressive metrics in 2020-2021 such as their sports betting increasing by 8% year after year in terms of revenue and their online gaming increasing by 40% year after year. Their compound annual growth rate of the dividends is 9.85%. This is a very fast rate of growth and beats other competitors in the industry. These statistics indicate that the company has very good potential in the future.
 
If you had bought this stock in 2015, you would have returns of 99%. This is why it is a great option to be added to a trader’s portfolio.
 
So if you are looking to buy or hold sports gambling stocks, Flutter entertainment might be what you’re looking for.
 

Draftkings

Draftkings is an American sports betting company. The overall value of the company is $25.3 billion. The major thing to consider when we talk about Draftkings is that they have millions of users in their database. It had one million-plus unique players and an increase of 64% year over year. This is why this company has a bigger advantage over its competitors in the industry.
 
Another noticeable feature about Draftkings is that they operate around the globe. The competitors of this company including the MGM resorts are concentrated on the US market only while Draftkings have penetrated other essential markets such as Europe and Canada. This is one of the reasons why this company is considered one of the best gambling stocks in the world. Besides, the stocks of Draftkings have been one of the best in this industry with an increase of about 37% in 2021 alone.
 

Wynn Resorts

Wynn operates ultra-premium resorts around the world but started operating in Las Vegas. Nowadays though, it has extended to Boston and Macau. Wynn Resorts gambling company stocks had a decrease of 94.8% in 2020 due to the COVID-19 pandemic. However, their past doesn’t lie. In the second quarter of 2019, they pulled in 1.66 billion dollars but in the second quarter of 2020, they pulled in only 85.7 million dollars. Most of the loss in the company was caused by the overall decline in the international economy as the pandemic hit the world.
 
The overall value of the total assets of this company was 13.8 billion dollars at the end of 2019 and it increased to 14.88 billion dollars by the year 2020.
 
Due to all of this information about the company’s past. It’s safe to assume that once the world reverts back to normalcy, they will undoubtedly come back to their former glory, thus guaranteeing amazing returns to traders.