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The casino industry has seen growing revenues over the past few years, particularly when it comes to the online sector. The global pandemic, new regulations and shifting attitudes have all helped lead to more consumers than ever choosing to sign up and play on online platforms.
Offering the same entertainment and excitement as a traditional casino, online casinos are also more convenient and provide greater variety for players to enjoy. It’s little wonder, then, that there’s been a huge increase in the number of people signing up to play online.
The rise in popularity of online casinos offers an exciting opportunity to investors, with several casino stocks seeing significant growth over the past year. In this article, we’ll look at some of the most exciting casino stocks that you should be watching.
Gaining Insights from Casino Experts
A good outcome when it comes to investing comes after you do thorough research beforehand. So if you made up your mind about investing in the gambling industry but still don’t know where to start, checking and reviewing specialised sites is a good start. Most of them have analysed the ups and downs of the most popular casinos and come with personalised tops.
Say, for example, you set your mind on investing in British casinos because of their overwhelming popularity. Then, the first thing you should do is check out a UK casino list put together by industry specialists to figure out which establishments deserve a closer examination.
The Best Casino Stocks for Growth
Here are some of the most interesting casino stocks which have demonstrated the capacity for growth:
DraftKings DKNG
DraftKings may have started out as a fantasy sports platform, but the site has quickly become one of the most important online gambling companies in the US. Since online betting was federally legalised, DraftKings sportsbook has been licensed in multiple states, and it now offers casino gaming too.
The number of customers signing up to DraftKings has been growing steadily year on year, and its share price has too. It’s down from highs of $71 in 2021 but has experienced 47% growth in the past year. At around $20 currently, it could potentially break its all-time high over the next year.
Las Vegas Sands LSV
This Las Vegas-based company is responsible for developing and operating multiple casino resorts on the Las Vegas Strip and in Asia. While land-based casino gaming may be losing ground to online casinos, mega resorts remain highly popular among customers and are seeing large revenue growth in the wake of Covid.
Perhaps the biggest indicator of growth for this stock is that Las Vegas Sands has an excellent balance sheet with more than $5 billion cash available and a strong cash flow. The company has been expanding into Macau, the Las Vegas of Asia, and the share price has seen a 73% increase in the past year.
MGM Resorts MGM
Another casino resorts company based in Las Vegas, MGM also benefits from being behind the highly successful BetMGM, a new online gambling platform available to US customers. Its platform is now licensed in 20 states, and more could be on the way as regulations open up, showing more potential for growth in this market.
The share price of MGM Resorts is currently priced at $42.81, and it’s grown by nearly 9% this year. Before 2020, it also paid out dividends of 1.8% annually, although this has dropped off since the pandemic. However, investors can expect further growth and potential dividend yields over the next few years.
Entain ENT
Entain is a London Stock Exchange-listed company that’s responsible for some of the biggest gambling brands in the UK. It operates several casinos and sportsbooks, and it’s also partnered with BetMGM in the US. Its stock recently fell in price due to having to pay a settlement to regulators, but it’s quickly bouncing back.
Currently, you can buy shares in Entain for around $1875, which is a lot steeper than some of the other stocks we’ve listed. However, there is still a lot of room for this company’s stock to grow, especially as it expands its online presence in the US. Over the past month, it’s increased by 17% and further growth is expected.
Conclusion
Investing in stocks can be as risky as gambling, which is why it’s important to do your research. All of the stocks we’ve listed have a strong history of growth, but market conditions can mean sudden price changes. While we expect the casino industry to continue growing, especially in the online sector, anything can happen in the future.
When investing in casino stocks, make sure that the company you’re investing in has a good reputation. If you want to minimise your risk, spread your investment between several companies, or find a casino ETF.
