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Is the increase in competition good or bad for online casino brands share prices?

Companies / Gambling Mar 09, 2017 - 01:43 PM GMT

By: Submissions

Companies

When looking at share prices in any industry there are a number of factors that need to be taken into consideration. National variables including things such as interest rates, inflation and current state of the government all have a huge impact on every company's share price; but what is it within an industry that makes the biggest difference company on company?


When an industry is on the up, the share prices of the major companies that operate within that industry inevitable rise. One thing that is crucial for an industry to be strong is good competition within it; but is increased competition good for the share prices of everybody?

Competition in the Online Casino industry

One of the most progressive industries at the minute is the Online Casino industry. The rapid growth of Online Casino's is in no doubt down to the fantastic promotions that they're able to offer. Things such as free sign-up £10 sign-up bonuses and free spins are just some of the ways that online casinos attract new customers; you can find out more here about other online casino offers.

Due to acquisition opportunities being so high in the industry, there is a lot of competition for online casinos. Pretty much every bookmaker worth their salt has a designated online casino platform and smart phone app; meaning that people can even engage with them whilst on the move. This high level of competition is good for the share prices of those big companies who hold a high market share, but for the smaller online casino's, this level of competition may damage their share price, or force them out of the industry all together.

Market share and its impact on share prices

As previously mentioned, those companies with a high market share tend to benefit from an overall boost in the industry. That's because these companies can ride the industry wave; they're the peak of the overall industry and therefore control, or at least affect it. For example, if the CEO of the largest Online Casino in the world was to resign, this would have a huge impact not only on that company, but the whole industry. This would be because of the uncertainly that something of this nature causes.

This is because as in any industry, the actions of the major players all have an effect on each other. So, when there is change to, or within one of leading companies in any given industry, you can bet your life that is will affect competitors.

Is increased competition good or bad for share prices in the Online Casino Industry?

You can't definitely say whether increased competition is good for the share prices of online casinos as a whole. Yes, it will be good for the share prices of some companies; most notably Bet 365, Ladbrokes and other major brands. But for some companies the increased competition may spell the end.

 

This is an paid advertorial. This is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any investing and trading activities.


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