Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Gambling Related Stocks: to Invest or Not to Invest?

Companies / Gambling Dec 20, 2018 - 11:07 AM GMT

By: Submissions


Award-winning entrepreneur Robert Arnott once said, “In investing, what is comfortable is rarely profitable.” And true, most self-made billionaires are risk takers. Of course, you also can’t invest in just about any business.

Gambling is one industry where investors are confused about whether to invest or not to. Successful casino startups can rise to be worth billions of dollars. On the downside, most of the companies fail. So, should you give the industry a try?

Lots of Successful, Publicly Traded Companies

If you only invest in publicly listed companies, there are lots of them in the gambling industry. The biggest brand, MGM Resorts International, has a market cap worth $17 billion. The Las Vegas-based company has also been on the rise since 2013, growing by 120% in five years.

Many of the popular gambling companies have been making profits consistently since they were launched. Even online gambling sites have been a big business in the last two decades. In the 2000s, the online casino industry was worth $1 billion. Today, the industry is worth over $70 billion.

While publicly traded companies tend to make profits consistently, there is no guarantee in the success of a startup. If anything, the failure rate for startups in the gambling world is as high as anywhere else. Before you invest in a new casino, be certain to do due diligence. Without proper research, investing in a gambling company is no different from gambling.

Legal Changes Impacting the Industry Positively

The recent news that New York, Louisiana, and several other states plan to legalize sports betting is good news to investors. Not exactly, if you have already invested in Vegas-based casinos as more casinos will end monopoly down there. But in the coming years, the states of gambling in the US is headed for the better.

Outside the US, Canada leads the way for countries embracing legal gambling. The UK and Australia, which already legalized the industry many years ago, continue to earn billions in revenues. In Asia, African and Latin America, gambling is experiencing similar changes. Countries that were once conservative about betting are progressive.

Unlike other industries, the growing legalization of gambling around the world will likely affect investors all over. Most of the publicly traded companies in the US, London and Macau have businesses in multiple countries. With more countries legalizing the industry, expect the established brands’ values to continue rising.

 Gambling Software Companies are just as popular

If you can’t find a casino whose stocks appear valuable to you, look around. The companies that provide games to casinos are worth billions. They are publicly traded and grow faster than most casinos. Unfortunately, the competition in the game development industry is as high as in the gambling world.

Another disadvantage in the game development segment is that most of the companies are privately funded. If you want to invest, you must contact the companies and hope they show any interest to you. If you can convince any interested company you have the money, they will certainly talk to you.

Don’t overlook sports betting companies and their software developers. Startups that also provide video games besides casino games are also excellent investment opportunities. The video gaming industry is rising at almost a similar pace as the casino industry. If you can find a company that develops games for both industries, there is a higher chance of success.

The Industry is Generally Growing

Although you don’t invest in the whole industry, it’s comforting to know the gambling industry is on a rise. That means, most casinos expect to rise in value in the future. It also means your stocks will likely gain value, but only if you invest in the proper company.

As many successful entrepreneurs have said before, investing in stocks is all about finding value where others don’t see yet. By the time investors find value in the same stocks, their prices will be up in the sky. It could take a year or ten years for that growth to happen. Take Warren Buffet’s word for it and be prepared to hold the stocks for a decade if you are serious about them.

Before you go for the stocks, make sure to understand how gambling works. Read more at New Casinos UK to find out the best online casinos in the UK. Learn how the facilities make profits, play the games and decide whether to invest.


If you want to make the most money from land-based casino stocks, visit Macau. The Chinese territory makes money than Las Vegas. While there are only 40 casinos in Macau against the 161 in Vegas, the latter made $33 billion in 2017. By contrast, Nevada made $10 billion.

In terms of growth, Macau is rising much faster than Las Vegas. In 2017, the number of people who visited Macau to gamble rose by 3.5% while the industry’s growth went up by 18%. The number of casinos opening up in the city is also growing and is expected to reach 50 casinos in the next two years.

A Changing Betting Culture

Sports betting is gradually making its mark in the gambling industry. Before 2000, the betting industry was a small segment in the gambling industry. Today, sports betting is worth more than $50 billion. The online part of the industry is worth more than $37 billion and is expected to continue growing.

Apart from the obvious growth in value, sports betting boasts of a favorable image in the general public. In many countries where sports betting is legal, bookies advertise on radio, TV and the Internet openly. By contrast, casino games only use the Internet, a few TV stations and billboards for marketing.

The positive image has helped sports betting companies continue to grow where casino-game sites fail. If history is to repeat itself, the sports betting industry has a bright future. Investing in one of the upcoming startups or already existing brands promises lots of profits.

To Conclude

Investing in stocks anywhere asks for a lot of research. You must know how to spot a company whose stocks will likely go up. In the gambling industry, things are no different. There is a lot of money to be made. But the industry is full of companies with potential and some headed to closure. Research, and decide whether to buy stocks in the industry.

By Ronny Martelli

© 2018 Copyright Ronny Martelli - All Rights Reserved Disclaimer: The above 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 losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules