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iGaming stocks worth buying

While the biggest gambling industries are found in the UK and US, there have been shifts in the concentration of the gambling business within both countries.

Due to clamp down by authorities in the UK, gambling firms, including rivals GVC and 888 Holdings, are pivoting to the United States, especially after the U.S. Supreme Court overruled a ban on sports betting.

Thus, knowledge about the financial position of popular brands in the industry is required to make informed decisions before investing in any.

Gamesys

The company Gamesys is one of the biggest online operators offering bingo and casino games to customers.

It does not infiltrate the entire gambling market partly due to industry regulation and scrutiny, with the company’s global betting market share less than 10%.

Nevertheless, its ability to enhance customers’ gaming experience through technological leverage, portfolio diversification, and ability to attract consolidation with the best-rated online casinos in Europe (as seen in a recent takeover of JPJ Group) tips the company for wide market growth.

A testament to the potential of the company was its estimated value of over €68 billion and year-on-year at the end 2019 fiscal year.

At the turn of the year, the impact of the COVID-19 pandemic was felt by the company, as its stocks hit a downward spiral of $531 in March 2020, from $707 in 2019.

However, the company was able to circumvent the commercial setback as a result of its stable online presence and has witnessed a turnaround in fortune with its stock valued as high as $931 in April 2020.

The company has been able to build investor’s confidence having held a stabilised value after dropping in March, making its stock a worthy option for long term investment.

GVC Holding

GVC Holding is one of the global largest betting and gaming companies, with a portfolio including bingo, casino, sports betting, poker, among others.

Having its headquarters in the UK, the company is licenced to operate in over 20 countries.

Through its technology-driven services, and lucrative M&A agreements, the company has expanded rapidly in recent times.

Largely boosted by a rise in its online segment, the company had a 12% increase in gaming revenue as of September 2019.

The company, which boasts renowned subsidiaries such as Ladbrokes, Coral, Sportingbet etc. reported a revenue decrease of 11% over six months period which ended on 30th June 2019.

It cannot be overemphasized that it suffered a bigger COVID-19 effect than Gamesys, and like its counterpart, GVC has recovered over the past few months, albeit bigger, with a stock price increase of 2.25% and is currently worth £1013.5.

This has pushed the company’s viability higher in ranking among stocks worth investing, with investors holding the discretion to capitalise on the company’s potential on a long or short term basis.

William Hill PLC

In comparison to other companies reviewed here, this company offers betting and gaming services on a small scale to customers in the United Kingdom, southern Europe, and the Nordics.

It operates three business divisions of online, retail and William Hill US. online.

Although widely renowned for operating on-course betting, with shops at approximately 36 racecourses across the UK, it also has a fair share of online betting services.

Having posted good performance at the turn of the year 2020, with reported earnings of over £143 million in 2019, the company has been badly hit by the pandemic, having seen revenue dropped by 9% by the end of September 2020.

This has been influenced by UK government-imposed lockdown in areas where it has approximately 10% of its betting shops.

Although 2020 has not been a good fiscal year for William Hill PLC, it is still a viable betting stock option, as Caesars EMEA is set to take over the company in a deal worth £2.9 billion to expand in the U.S. betting market.

888 Holdings

The company 888 Holdings, which has its headquarters in Gibraltar, is one the most popular online betting providers, with services across casinos, poker, bingo, etc.

In partnership with its partner Dragonfly, the company offers unbeatable online B2C services through high-end technology and software.

The company is one of those which offers lucrative stock options, in that, in spite of the pandemic plagued the year 2020, it reported a 90 % earnings increase in the US, and an overall surge of 56% increase in the first six months of the year, ending on 30 June.

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