Some believe earning a passive income is a myth or an activity reserved for the rich and ultra-rich. That’s not entirely the case. If you feel like making your money work for you, investing in the gambling industry might be a good idea.
The current world situation has made land-based casinos’ revenues plummet in the first half of 2021. Still, online operators have been growing and getting the industry back to normal. Now, an ascending tendency turns the gambling industry into a lucrative opportunity for investors.
Investing in gambling is a form of gambling. There are multiple common points between gambling and stocks. You face risks in a volatile market, and you need to have a proper strategy to thrive. Just like when you’re playing casino games, you have to take into account bankroll swings, time management and even the addictive potential of share trading.
However, if you follow a few bankroll management rules and invest wisely, chances are you will earn in the long run.
With this in mind, we provide a top of the best gambling stocks to buy if you want to score a relatively safe profit. This relative ‘safety’ is deduced from the steadiness of a company share’s value.
- DraftKings Inc.’s (DKNG)
A US-based company, DraftKings provides one of the largest sports betting sites in the country. Its products range from fantasy sports, online gaming and sports betting technologies. Some analysts hail the company as one of the most likely to return significant profits over the long term.
With a $37.31 billion market cap and a steady yearly increase in revenues, it’s surprising that the company also reported major losses. Still, this year has seen a better-than-expected loss figure for the company, which may point to the fact that the online gambling industry may turn negative trends around.
- Bragg Gaming Group (BRAG)
Bragg Gaming Group is likely to be a good investment option. It specializes in the online gambling sector, focusing on B2B and B2C companies. Its primary service is an international turnkey solution shared by casino brands around the world.
The company has been on an ascending trend since august 2021. Experts project it will grow around 417% in 5 years. Total revenue in Q2 2021 grew by 28%, with a gross profit increase of 35.7%.
- Esports Entertainment Group (GMBL)
The company didn’t reach its full potential yet, infancy, but the consensus among Wall Street analysts is that GMBL stocks are a strong buy. With a share price of $6.76, it is projected to reach $30. However, some analysts are more pessimistic and believe it may become worth even less than now.
However, in terms of revenue, there’s a clear improvement of 63% in Q4 compared to Q3. Its gross profit went up 69% since the last quarter. Again, the world situation may have had a lot to do with this sudden change. With an impressive growth of e-sports viewership worldwide, one can expect similar evolution in the e-sports gambling sector.
- Flutter Entertainment’s (PDYPY)
Formerly known as Paddy Power Betfair PLC, Flutter Entertainment is undoubtedly one of the giants in the online gambling industry. With the merger of Paddy Power and the Stars Group, it’s almost inevitable that you’ve used one of its products.
Flutter Entertainment generated over $4 billion in revenues in 2020. It will continue to grow at a compound annual growth rate of 14% in total shareholder returns. Share price ranges from $85-$87. Most experts believe it will outperform the market average, so that it might prove an excellent opportunity for investors.
- MGM Resorts International (MGM)
MGM owns resorts and land-based casinos worldwide, including the renowned Bellagio. Land-based casinos have been suffering. However, MGM Resorts has managed to keep itself afloat by entering the online gambling world through its BetMGM sportsbook app.
However, MGM must catch up with its global rivals online, now competing with William Hill and Penn for the third spot.
The company’s revenues rely mostly on land-based venue operations, which have been affected significantly in the past two years. A gradual re-opening of casinos won’t boost the business much. Still, its commitment to grow in the online sector makes it a potentially good buy.
- Caesars Entertainment Inc. (CZR)
Caesars Entertainment is the leading gambling company in the US and the world’s largest casino operator, owning over 50 land-based facilities worldwide. The previous owner of William Hill’s non-US assets, its net worth was $36.4 billion in 2020, with a current market cap of $22.69 billion.
Current estimations reveal the company has a high level of implied volatility, meaning it poses a relative risk. However, most analysts agree that it might be the perfect moment to buy CZR shares. The current share price is $107, but it could swing up very fast.
- Boyd Gaming Corp. (BYD)
Boyd Gaming focuses on online gaming services and land-based casinos, with a strong presence in Las Vegas. Valued at $6.7 billion, it is one of the better performing gambling companies in 2021. While its land-based operations were affected, it does not rely solely on them has helped it return strongly in 2021.
Experts estimate a better-than-40% return. This kind of momentum allowed it to emerge with less debt than its competitors, making it an attractive buy for investors.
- William Hill PLC (WMH)
William Hill provides sports betting and casino services worldwide, with a strong focus on the UK market. While primarily known for its local betting shops, the company reported that more than 60% of its revenues came from expanding digitally.
Experts at RBC deem the gambling operator to outperform the market and consider it a viable, although risky, investment opportunity. Still, with William Hill International’s acquisition by 888 Holdings, the situation is set to improve.
- Bally’s Corp. (BALY)
Bally’s Corporation is a US-based company headquartered in Providence, Rhode Island. It operates gaming and horse racing facilities and hotels and restaurants, owning 14 land-based casinos. These represented its primary source of income until recently when the acquisition of several sports betting and iGaming brands
led to the creation of the Bally Interactive division.
It is responsible for Bally Bet, a sportsbook operator dedicated to Major League Baseball, National Hockey League, and the National Basketball Association. It is one of the fastest-growing companies in the US, at a rate of 391.71%.
- Penn National Gaming (PENN)
Another local gambling company has made it to our list. Initially, it provided land-based casinos and racetracks. However, it has recently ventured into the online gambling world, with positive results made possible by acquiring the Barstool Sports app.
Its total assets were valued at $14.6 billion in 2020. Shares have recently dropped 3.9% due to allegations of misconduct by Barstool’s founder, Dave Portnoy. However, it is expected that once the accusations wither, the company will return to its previous level of performance.
- FUBO TV Inc. (FUBO)
FUBO TV is hailed as a revolutionary streaming service for sports fans in the United States. Recently, it has announced it will launch a sportsbook service, integrating its streaming service with the possibility to place live bets. Moreover, its technology aims to use consumer’s behaviour data to suggest more relevant bets, transforming the watching experience and making it more engaging.
These developments have earned it a 4.62 billion market cap. While it appears to grow at a constant rate, be aware that price volatility ranges +/- 9% a week typically. It’s best to see an expert before investing here, although the company’s recent deals have made it trend higher.
- 888 Holdings PLC (888)
888 Holdings owns several brands and gambling sites. With a market cap of $1.38 billion, it’s one of the best performing online casino companies globally. It has invested in technologies that smoothen the players’ user experience and grant them a safe and responsible play environment.
We’ve already mentioned the potential acquisition of William Hill businesses, which will undoubtedly positively affect share prices. As for this year’s performance, the company has exceeded expectations with total revenue growth of 39%. Most Wall Street experts agree that this is a stock to buy.
- Kindred Group PLC (KIND-SDB)
Formerly known as Unibet Group PLC, the company has changed its name to Kindred Group to reflect its multi-brand approach. Kindred Group operates multiple online sports betting and casino brands, including Unibet, iGame, and Bingo.com.
Trends have seen the Kindred Group grow steadily over the years in market share in the US, Europe and Australia, even despite 2020’s events. The company has reported a 6% revenue increase in Q3 of 2021.
- Best of the Best PLC (BOTB)
Best of the Best PLC is a company based in the UK. Its main activity is running weekly competitions with various luxury prizes, focusing mainly on cars. These competitions are similar to a lottery. You enter by paying a fee and have a limited chance to succeed. That is the reason why most stock exchanges list their operations as a form of gambling.
While this company is by no means the largest out there, it offers you the chance to buy at low prices and sell at higher prices due to its significant price movements. Some experts project that your investment may go up 5x until 2026.
- The Rank Group (RNK)
Founded in 1995, The Rank Group is one of the largest gambling companies in the UK. It operates all the casinos under the Grosvenor label, with 56 brands under its name, Mecca Bingo and Rank Interactive. Additionally, the company operates several other online casinos in Belgium and Spain. With a membership that amounts to more than 1.7 million players worldwide, the company is one to keep an eye on.
The Rank Group revenues will grow 69% in Q1 of 2022, after performing better than expected in 2021. The current share price stands at $69.49, and most financial experts consider it’s worth investing in this period.
We have covered 15 of the most valuable gambling companies in the world. Investing in one of these companies’ shares might return steady profits over time, given that the industry is set to grow to unprecedented heights in the following years.
More and more land-based operators are switching to online services, confirming this ascending trend. You don’t have to be a Wall Street analyst to see that growing companies are worth investing in. However, you should consult with an expert before making a significant investment. In any case, we believe any expert would agree that investing in a top gambling company right now will turn profitable.