iGaming And Sports Betting Stocks: Is It Time To Double Down?

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Photo by StockSnap from Pixabay

Recently, the stock market for sports betting and iGaming stocks has been under selling pressure from investors. The whole gambling sector took a hit due to the general risk from the current market conditions, which led investors to focus on other stocks – those that have value to their name, instead of newer, growth stocks.

Following the fluctuation in the pricing action, many of the gambling stocks, such as online bookmakers, casinos, and poker platforms, have experienced a sharp price drop even amidst positive news and events. According to analysts, these changes are possible only because of the regulatory landscape regarding gambling and the sheer volume of numbers.

A great example would be to point at the hot New York state, where gambling platforms, be it bookies or online casinos, have generated over 1.2 billion USD from bets, of which only 91.4 million in profits – based on information for the first sixteen days of action. The leaders among the bookmakers in the state are:

  • Caesars Sportsbook – ticker CZR, on NASDAQ. It recorded total wagers of up to 41.5% and revenue of about 45.7%;
  • FanDuel: Stock market PDYPY on OTCPK with bets totaling 30.6% and 26.4% in profits;
  • DraftKings – popular bookies known as DKNG on NASDAQ, accumulated 22.6% from bets, of which 23.8% was pure revenue;
  • BetMGM – on NYSE with a ticker symbol of MGM, totaled 3.5% in handle and 2.8% of profits;
  • BetRivers – With the symbol RSI, on NYSE with total bets equaling 1.9% and 1.3% in revenue.

To add to the leading five, we’ve got PointBet, which made its official launch in New York earlier this year – on January 24th. Analysts expect WynnBet and Bally Bet to join soon after getting their official launch dates in the approximate feature.

If we take our attention to other places in the USA, we’ll see that last week, seven new gambling online platforms emerged only in Louisiana. This showcases the rapid growth of this industry. Online casinos outside Gamstop are gaining momentum, offering a wider variety of gaming options to players looking for alternatives. In Ohio, for example, the regulatory procedures are processing swiftly with no hindrances and keeping up with the recent growth trends.

This overall growth across the country smitten analysts with the sheer number of emerging gambling platforms that far surpasses any expectation. The only state that does seem to keep up is Florida. There, the situation is stagnant considering the ballot failure around the November elections.

Crypto casinos beyond Gamstop represent a burgeoning sector within the gambling industry, providing anonymity and security for transactions, which appeals to a broad audience of players. To keep up with the impending changes and the rapid growth, Penn National Gaming, a company on NASDAQ with ticker PENN, stated that they’re ready to focus their attention on Ontario. According to them, as soon as the province markets are officially open around the 4th of April, PENN will launch their mobile sports betting offering.

In recent news from an “Investors Day”, Genius Sport, a company on NYSE with the symbol GENI, emphasizes that there’s lots of money to be made. They pointed out that the growth in the sector will be beneficial for tech partners who work with firms within the online gambling sector.

Non-Gamstop casino slots are carving out a niche for themselves, offering players unique and varied slot game experiences that are not found within the traditional Gamstop program. This diversification allows players to explore new games and enjoy a broader selection of content.

Taking our attention to Wall Street, we can point out that from all recent price updates, about DraftKings impressed us. The company was upgraded to “Overweight” due to the rapid growth of 70% from its previous 52-week high.

“The YTD – Year to Date prices of some sports betting and iGaming platforms show returns of: PlayAGS (NYSE:AGS) +12.4%, Kindred Group (OTC:KNDGF) +7.1%, Wynn Resorts (WYNN) -1.1%, Gambling.com Group (NASDAQ:GAMB) -3.7%, Inspired Entertainment (NASDAQ:INSE) -4.6%, Bally’s (BALY) -5.4%, Flutter Entertainment (OTCPK:PDYPY) -6.9%, MGM Resorts (MGM) -7.24, Everi Holdings (NYSE:EVRI) -8.5%, International Game Technology (NYSE:IGT) -9.3%, Entain Plc (OTCPK:GMVHF) -9.9%, Boyd Gaming (NYSE:BYD) -10.2%, Penn National Gaming (PENN) -14.8%, Evolution Gaming (OTCPK:EVVTY) -16.1%, Churchill Downs (NASDAQ:CHDN) -16.3%, Scientific Games (NASDAQ:SGMS) -18.0%, 888 Holdings (OTCPK:EIHDF) -19.2%, Playtech (OTC:PYTCF) -20.8%, Caesars Entertainment (CZR) -21.9%, Genius Sports Limited (GENI) -22.6%, Esports Entertainment Group (NASDAQ:GMBL) -22.8%, DraftKings (DKNG) -24.9%, Golden Nugget Online Gaming (NASDAQ:GNOG) -25.1%, PointsBet Holdings (OTCQX:PBTHF) -26.8%, Sportradar Group (NASDAQ:SRAD) -28.1%, GAN Limited (NASDAQ:GAN) -28.8%, fuboTV (NYSE:FUBO) -36.6%, Rush Street Interactive (RSI) -46.3%, Esports Technologies (NASDAQ:EBET) -50.1%.”

Considering the rapid changes, the drops in some of the gambling stocks, and the rise of the new ones, many wonder if there’s any value play in the whole sector. Casinos not listed on GamStop offer an alternative avenue for investors looking into the gambling sector, potentially providing untapped markets and opportunities for growth. We won’t delve into the matter and just point out the progress made by Penn National Gaming, Boyd Gaming, and Bally, all of which trade with forward price-to-earning ratios of below 20X.

Gaming can lead to addiction, a serious concern for anyone who gambles. If you or a person you know is battling with this issue, don’t hesitate to seek support. These resources can provide assistance:

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