Online gambling was a profitable industry in 2020. But was it a COVID fluke? Is online wagering still a good bet for investors? Where should you put your money if you’re considering getting into online gambling stocks?
Internet wagering laws should continue to loosen. The growing betting business has some stocks that show promise in 2021. Many could take off as more cash-strapped state governments see the potential in tax revenues.
Should You Invest in Gambling Stock?
The stock market tends to be a good investment in the long run. Over 10 years or more, a solid stocks portfolio will almost always make you money. That’s just one good reason to look into gambling stocks.
Secondly, the gambling sector shows a significant upside, especially for companies exposed to the online market. COVID-19 drove people to stay home and gamble inside, and many are planning to stay there.
Finally, if you are reading this, you probably gamble online. So, if you are investing in the industry at one end, you might as well get in on the earnings, too.
Online Gambling Stocks That are Primed For 2021
There are many online gambling investments to consider. We did a little research and dug up a few good-looking stocks to get you started in your quest for a winner.
Please Note: We at OUSC are not financial experts, and past stock performance doesn’t guarantee future results. So acting strictly on this information is at your own risk. We suggest consulting your broker or financial advisor before investing.
Roundhill Sports Betting ETF
Roundhill is an exchange-traded fund, which is a professionally managed collection of stocks. It includes 38 holdings, so if you want to spread your money around the sector for a balanced return, Roundhill is a good route.
It covers 38 holdings, including big ones like Penn National Gaming (NASDAQ: PENN) and DraftKings.
DraftKings is a major fantasy sports outfit. It has been in business since 2012 and hit the stock market in April 2020. The company has expanded from only fantasy games to sports betting, and online casinos.
Though the company has lost money in the past, investors still like it. It hit the market at 10 and is now in the 50s.
Caesars is one of the most well-known gambling and resort conglomerates. They recently merged with William Hill, a London-based online gaming outlet. That’s a big move since it reaches into Europe.
The 2020 deal saw stock prices skyrocket, and they are still on the way up in early 2021.
MGM Resorts International
You know this company and its Vegas presence. But did you know MGM has expanded from land-based to online? BetMGM came onto the scene in 2018, and you can now wager online with them in nine states.
Many of those states include online casino betting, with more expected to follow soon.
What Does The Future Hold for Online Gambling Stocks?
The pandemic brought gambling into homes last year, a significant reason online betting grew both in the US and abroad. Gambling companies that have online exposure became attractive investments for the short term.
Add these four stocks to your follow list and keep an eye out for other related companies. With the legalization of online gambling increasingly gaining favor, we expect even more growth in online gambling stocks throughout 2021.