Gambling stocks are generally seen as a safe investment, especially with online casinos growing in popularity and numbers worldwide, leading to consistent market growth. Nevertheless, as is with all stocks, they’re prone to potential value drops over time. With the global online gambling market expected to grow to USD 127.3 billion by 2027, it could be time you considered investing in gambling stocks. Below are gambling stocks you should invest in.
Pragmatic Play is a European casino software that has been certified in over 20 gambling jurisdictions. It offers slots, bingo, and live casino experiences. Pragmatic play recently launched a Teen Patti live game. Teen Patti live is played in real-time, providing evocative and engaging experiences.
As of mid-2020, its estimated global market size was over $200 billion.
Evolution Gaming, developed by a Swedish group, began in 2006, with its primary focus being the live casino market. Most of the group’s income comes from the 10% take rate received from online casino licensing. Its financial provisions allow the group to get $10 from each $100 an online casino makes using the licensed software. Thanks to mergers and acquisitions that led to the acquisition of Red Tiger and NetEnt, Evolution gaming has experienced tremendous growth, with its revenue having grown by 53% to reach $671 million in 2020.
Churchill Downs Inc. (CHDN)
Churchill Downs owns the Kentucky Derby, a horse racetrack, and other U.S regional racetracks and casinos. In the first quarter of 2021, Churchill Downs saw a 28% revenue growth and 100% adjusted earnings growth before taxes, interest, amortization, and depreciation. The Bank of America has a buy rating and a $250 CHDN stock price target.
Caesars Entertainment Inc. (NASDAQ: CZR)
Caesars Entertainment, an American hotel, and casino that operates more than 50 properties, including Flamingo Las Vegas, Bally’s Las Vegas, Harrah’s Las Vegas, Rio All-Suites hotel and casino, and more. The quarter of 2021 saw Caesars Entertainment with $2.03 EPS, beating estimates by $1.08. compared to the previous year, the company’s net revenue rose by 259.2% on a GAAP basis to reach $1.7 billion.
Las Vegas Sands Corp. (NYSE: LVS)
Las Vegas Sands Corp., an American casino and resorts operator, owns several clubs and restaurants, exhibition and convention facilities, and art and science museums. Earlier in 2021, the company sold two of its Nevada properties for $6.25 billion, so it could focus on growing its Asian markets. In the first quarter of 2021, Las Vegas Sands Corp. had a $0.68 EPS, short on $0.85 estimates. The company’s net revenue went down by 15.6% to reach $1.20 billion from the previous quarter.
MGM Resorts International (NYSE: MGM)
MGM Resorts International, an American hospitality and entertainment company, runs in several worldwide locations, including Las Vegas, New Jersey, Massachusetts, Maryland, and others. In the first quarter of 2021, MGM Resorts International had a $0.68 ESP lower than the $0.85 consensus estimates. Its revenue increased to $1.6 billion from $1.5billion the previous quarter. In the past 12 months, MGM Resorts International gained around 122%, making it a good stock to invest in.
Gambling stocks are a good investment. However, before putting your money in any stock, it’s essential to study the market, conduct research, or look for reliable reviews to make an informed decision. Beware of all the risks involved and consider diversifying your investment.