Whether you’re a stock trader or part-time investor, everyone is looking for the next Amazon (AMZN) or Tesla (TSLA). Unfortunately, unearthing such gems in their early years is no easy task, and there is no way of knowing if they are going to become bluechip companies in the future or not.
However, there are some industries and their respective stocks, such as gambling and iGaming, that appear to stand the test of time. Just like slot games with the best RTP, these companies tend to produce solid returns year on year. Furthermore, when you consider the shift in consumer behaviour in recent times, it’s fair to assume iGaming stocks will remain a good gamble in the years ahead.
These are some stocks that people have been talking about this year:
When you think of powerhouse companies within the iGaming and gambling industry, Flutter Entertainment rightfully deserves to be near the top of the list. Its portfolio of brands includes FanDuel, Stardust Casino, Betfair, Paddy Power, and Sportsbet (Australia). In addition, only last year (2020), Flutter completed a majority merger of The Stars Group, which added PokerStars, Full Tilt, Sky Betting & Gaming, and others.
Essentially, this organisation has its fingers in multiple pies covering most of the world’s most lucrative iGaming markets like the USA, UK, Canada, Australia, and Ireland. America is understandably one of its key markets, which is why it grabbed FanDuel. Also, through a partnership with Boyd Gaming, Flutter has revived the iconic Stardust name with its rebranded Betfair US online casino.
If you’re looking to bag some iGaming stocks, DraftKings is worthy of serious consideration. Having forged its name in the world of daily fantasy sports, DK has successfully moved into online sports betting and casino gambling in regulated US states.
Having only gone public in 2020, DraftKings is still one of the new names for investors to put in their portfolios. The company has multiple noteworthy partnerships like its deal with ESPN and the NFL (as an official betting partner).
What’s more, DK is putting up some impressive numbers that are capturing the attention of Wall Street. It reported revenue north of $320 million in Q4 of 2020, which was a 146% increase from the same period in 2019. Looking forward to the figures at the end of 2021, DraftKings is aiming for $900 million, while some believe it may top $1 billion.
MGM is a massive name in the gambling world with a host of venues in Las Vegas, Atlantic City, and Macau, among other places. Of course, revenues from its land-based empire dried up considerably due to the global coronavirus pandemic, but potentially this allowed for greater focus on its iGaming and online sports betting brand, which operates under the label BetMGM.
However, MGM appears to be eyeing further global expansion. In January 2020, it offered $11 billion for the British gambling firm Entain – owner of Ladbrokes and Coral. Although this initial bid was knocked back for being too low, it’s widely expected that MGM will come back again with an improved offer. This would secure it with highly prized assets on both sides of the pond.
For true believers in the future of iGaming, Evolution Gaming is the preferred choice for most investors. This company started out as a live dealer casino specialist, and it’s virtually untouchable in this niche now. It operates more gaming studios, has more tables, and a larger portfolio than any other provider.
Having acquired several smaller casino games providers like Ezugi, Evolution Gaming made its grandest purchase to date by acquiring NetEnt in the second quarter of 2020. It’s fair to say that Evolution benefitted from the lockdowns we’ve all had to endure, but it’s also a compliment to the company’s vision as to how it’s worked the situation to its advantage. This stock looks set for great things as the future of iGaming continues to blossom.