Is It Profitable To Invest In Online Gambling?

Is Investing in Online Gambling Profitable Featured Image

Online gambling has been around for decades. It continues to be a growth industry, spurred by related technology and increasing social and legal acceptance. 

Internet betting most recently proved its worth as an investment by profiting during the pandemic while other industries faltered. Mobile iGaming technology, cryptocurrency, and US state legalization keep pushing it to new heights. For investors, all indicators point up.

Past Profitable Online Gambling Investments

Most investment opportunities related to internet wagering come down to stocks and mutual or exchange-traded funds (ETFs).

You can invest in casinos directly, such as Wynn Resorts (NASDAQ: WYNN). Earlier this year, they announced a merger with Austerlitz Acquisition Corporation to expand its online presence. They are looking to recoup some of their COVID-19 losses.

Churchill Downs Building

In the same vein, you could put money into casino-related companies such as Churchill Downs (NASDAQ: CHDN), whose TwinSpires platform accommodates online betting. They are up over 400% in the last five years.

Then there are sports gambling stocks like DraftKings (NASDAQ: DKNG), which is up over 400% after its late 2019 IPO. Also, look at Flutter Entertainment (OTCMKTS: PDYPY), with various betting-related subsidiaries, including FanDuel.

Ways to Invest in iGaming and Online Gambling

While most online wagering investments land you somewhere in the stock market, there are other ways to get into iGaming, particularly if you have the cash.

You could take a more direct approach by supporting a company through seed funding or helping a betting business expand into a new online market. The segments are varied. Here are some areas to consider:

Casino Gaming Stocks

Casino Stocks

Casino stocks cover a lot of ground themselves. For instance, Red Rock Resorts (NASDAQ: RRR) has 21 casinos and is expanding its online presence. It has gained a lot of attention this year for its performance over projected estimates.

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) owns and develops casinos based in Hong Kong and has recently expanded into Europe.

Mobile Casino Support Technology

Support Technology

There are all sorts of areas that support internet gambling. Software companies develop casino games and functions.

Take a look at International Game Technology PLC (NYSE: IGT), which provides several wagering platforms, including lotteries and sports betting. NetEnt and its parent company Evolution Gaming are familiar names in real money online casino games.

Sports Betting Stocks Football Soccer and Tennis Icon

Sports Betting Stocks

In addition to DraftKings and FanDuel, Penn National Gaming (NASDAQ: PENN) is one of the companies profiting from the US gambling market explosion. Penn’s big move was acquiring a stake in Barstool Sports to launch a sports betting app.

More established international companies such as William Hill (OTC: WIMHY) are solid long-term investments.

Roundhill Investments Logo

Various ETFs

If you like the idea of mutual funds or exchange-traded funds, the online betting market has those too.

One of the prime plays getting attention this year is Roundhill Sports Betting & iGaming ETF (NYSEARCA: BETZ). Its portfolio includes Penn National and DraftKings, as well as other US and international brands.

Is There Profit Left on the Bone?

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Internet betting took a giant leap in profits during the lockdowns of the pandemic last year. Market experts believe the new customers will stick around and enhance industry growth.

The market size at the end of 2020 was an estimated $64 billion. Analysts project that value at $72 billion by the end of 2021 and $112 billion by 2025.

While a big chunk of this is sports betting, the online casino sector is diverse, strong, and promising for investors. Driven forward by the timeless popularity of games like poker, roulette, and of course, slots, online casino games remain popular and in demand.

The growth reflects a continual climb that has been going on for the last decade. So it is easy to see that the industry will continue its upward swing, particularly as it expands in the US.

New States and Markets Are Legalizing Regularly

United States Map

Online gambling is constantly gaining steam in the US. Since a Supreme Court ruling in 2018 essentially made it legal, more states have regulated it each year. Now 16 states have legal online sports betting or internet casinos, with more expected to get on board in the next few years.

Worldwide, dozens of countries allow some form of online gambling. Uzbekistan, Ukraine, and the Netherlands recently opened their gambling markets to online players. The prospects for state-controlled revenue are driving the trend. 

If You’re Looking for RTP…

Gambling in the US is emerging from the shadows, which means investment is more and more of a possibility. For those of us who gamble online, the thought of a better return on our investment makes perfect sense. The potential for that return now looks better than ever.

Note: We at OUSC are not financial experts, and past stock performance doesn’t guarantee future results. So acting on this information is strictly at your own risk. We suggest consulting your broker or financial advisor before investing.

About the Author
Webster Lupton

Webster Lupton - Researcher / Writer

Webster has been writing about gambling for 10 years and gambling even longer. He also likes the outdoors - mountains, beaches, camping, and birdwatching.