During the pandemic, those fortunate enough to keep their jobs and make the transition to remote work often found themselves with a bit of extra cash left over each month. With restaurants being closed and vacations postponed many people looked to alternative ways of entertainment.
For some, this entertainment came in the form of online gambling. Through online casinos and various bookies, people started betting more than ever before, and the revenues of these gambling companies skyrocketed. For those publicly traded, it naturally resulted in a massive surge in share price, with some companies doubling 200% or more. In this text, we’re going to go through some basic information about the gambling industry of today for you to be able to make an informed decision on whether some gambling companies might be worth researching from an investment standpoint. Continue reading as we go through why gambling like the NFL picks matter in today’s industry, as well as some things to look out for.
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A globalised industry
The betting industry of today is extremely globalised and several of the largest companies have operations in more than 30 countries. This in turn means that the profits have the opportunity to grow on a larger scale than a domestic business but the competition, especially in Europe, is absolutely brutal. All countries in Europe have one or two major domestic companies as well as presence from several different international companies.
When it comes to betting the profits have been able to increase partly because today it’s possible to bet on sports all across the world, regardless of where you live. Someone in the UK is able to look through the same NFL predictions with the same ease as someone in America. There are a couple of online casinos listed on stock exchanges, but these are much harder to grow at the same pace as large international sportsbook companies due to the fact that there is a lot more competition.
One thing to look out for is regulatory issues that may arise when it comes to investing in gambling. Most of these companies are highly reliant on regulations remaining favourable, and changes in laws and governments can have a dramatic effect on stock price.
Two different types of investable companies
Today there are mainly two types of gambling-related companies listed on stock exchanges. The first are actual casinos and bookmakers. These companies provide the opportunity for customers to place wagers. Some of these companies are listed on stock exchanges and have several years between them and the IPO. Those companies that provide casino games and are publicly traded tend to be conglomerates of several casinos, often in different countries.
The other type of gambling companies that are investable are sportsbook companies and developers of various casino games. These are companies that produce and develop different types of casino games which casinos can then lease for a fee. There are several different types of these companies, all with different specialisations.