Online Gambling Firms
Caesars’ announcement that it is expanding sports betting to its casinos in New Jersey and Mississippiwas good news for its technology partner Scientific Games.
One aspect of the story that went virtually unmentioned is that Scientific Games is an American company.
Leading online gambling firms worldwide in 2015, by market share; Online gambling market share worldwide 2015, by product; Online gambling market value growth worldwide 2009-2018. Flutter Entertainment is an online gambling business that owns brands such as Paddy Power and Betfair. Firms with a solid foundation for growth will be resilient. Playtech is one of the most popular software developers and providers that have the highest number of casinos, slots, and other gaming software. You can wonder how Israel and this online casino.
The other major deal announcement came from MGM, which is entering a 25-year joint venture with GVC to take advantage of interactive gaming opportunities in online casino, poker, and sports betting.
GVC is a British company. And that’s not surprising, since the majority of online gaming operators and gaming technology suppliers are not US companies.
As part of the deal presentation by MGM and GVC, the companies presented slides explaining what they were each bringing to the deal. The GVC’s slide ranks it number one among its peers by annual revenues as an online gambling operator.
Market leaders in the gambling industry
The other eight companies GVC compares itself to are:
- Bet365—British
- PaddyPower Betfair—British
- William Hill—British
- The Stars Group (incl Sky Betting and Gaming)—Canadian
- Kindred Group—Swedish
- Betsson—Swedish
- 888 Holdings—British
- Jackpotjoy (owner of Intertain)—British
Not a US company in sight. If we expand our list of gaming companies to those involved in gaming technology, we might expect a greater US presence. After all, the US leads the world in IT:
- Kambi–Swedish
- IGT—Italian
- SBTech—Isle of Man
- SportRadar—Norwegian/Swiss
- BetGenius—British
- Mionmi—British/international
- CG Technologies—USA
- Scientific Games–USA
Finally, an American company! CG Technologies operates in Nevada. It is licensed as the operator of the CG race and sports book. It also provides technology to partners such as the Atlantis Casino on Paradise Island in the Bahamas.
Scientific Games owns a few other gaming technology companies whose names are familiar:
- NYX Gaming Group Limited
- WMS Industries
- Barcrest
- Bally Technologies
Scientific Games created the first secure instant lottery ticket in 1974. Since then, it has grown into a multi-billion dollar company with a NASDAQ market capitalization of over $4.5 billion. The company calls Las Vegas, Nevada home base. Scientific Games employs around 9,500 people worldwide.
Why is the US so far behind?
The Europeans seem to dominate online gambling either as operators or technology suppliers. With a few honorable exceptions such as Scientific Games, American companies and even Chinese companies don’t get a look in.
Gambling has long been illegal in China. Resultingly, its largest companies have generally stayed away from the area. Companies like Tencent, which have a major ownership stake in esports titles have tried to keep out of the real-money gambling business.
In 2016, Caesars sold its online gaming business to a consortium of Chinese companies fronted by Alibaba founder Jack Ma. The one piece of the business which stayed in Caesars’ hands was WSOP.com, the real-money online poker site active in New Jersey and Nevada.
In the US, the barriers to developing an online gambling business have been the Wire Act, PASPA, and the UIGEA.
The Wire Act has now been re-interpreted to apply only to sports betting with the result that states can legislate to establish their own online casino and poker games.
PASPA has been overturned by the US Supreme Court, so now states can add sports betting to their online portfolios.
Tide turning for US gaming companies
The spread of legalized gambling is making it more attractive for the banks to revise the blanket anti-gambling transaction policies enacted post-UIGEA. Easier deposits and withdrawals make it more likely that casual US bettors will get online.
In short, many of the barriers that prevented US companies from becoming global online gaming players have now been dismantled.
The online gambling market may be dominated by foreign companies, but the expansion of state-regulated sports betting could change all that.
Mergers and acquisitions to take US casino companies into the online space are something to look out for over the next couple of years. Within a decade, it may no longer be unusual for a US casino company to partner with a US online technology provider.
While everyone is looking to the renowned stocks that have been in the exchange market for decades, some investors are shifting their focus on the online iGaming industry.
Most of us have by now tried betting on sports or playing online casino games. Recently, this is one of the industries that have been escalating at an alarming rate across the globe.
Besides the level of new gaming technology like mobile casinos, and live dealers giving this industry much support for visibility, the introduction and legalization of gambling in most countries have also contributed to its growth. But have you ever thought of investing in this industry as an investor?
Well, it is quite easy, and online casino is a fast-growing market as more and more countries legalize iGaming on the internet. From Canada, Sweden, China, the US, to the UK, the stocks might turn out to be a good investment. Here are ten iGaming stocks that everyone can invest in (this being intended exclusively for information purposes):
1. Ladbrokes – GP.22
This is another gambling stock that you can invest in that is on the London Stock Exchange. It is a benchmark in the United Kingdom when it comes to online betting. It is one of the most solid companies across the globe in this industry that has made its stocks very stable. After a close analysis of its 10 years in the stock market, experts call it a conservative investment.
2. NetEnt – NETB
This is another high-quality software provider in the virtual casino world. Every tester in Canada, usually go to this company as a quality seal. Although this company joined the gambling sector a little bit late compared to the others, it has been at the forefront when it comes to online casinos and popular slots. Its stocks in the Stockholm Stock Exchange has been doing well after overcoming stiff competition from the other companies in the market.
3. Stars Group – TSGI
Have you ever heard of PokerStars? This is the head and the hub of some of the largest poker sites across the globe. On the internet, it is one of the best gambling companies when it comes to its coverage. With its expertise in the field, it has positioned itself as one of the leading and key players in this industry. But, its stock and shares in the market have been volatile. It is on the Toronto Stock Exchange and it is good for the professional traders.
4. LeoVegas – LEO.ST
Over the past five years, this has been one of the most successful gambling company in Sweden. One of the things that giving LeoVegas a footing in online gambling is its smartphone casinos with the most popular one being Leo Vegas Casino. It has been making it possible for gambling fanatics to play their favorite online slots using their mobile phones. It is on the Nasdaq Stock Exchange.
5. Kindred Group – KIND-SDB
These stocks and shares from the Kindred Group are on the Stockholm Stock Exchange. It is one of the great companies with various betting sites revolving around sports, online casinos, bingos, and poker. Unibet happens to be the trademark of the Kindred Group which so is the largest betting site in sports globally.
6. Caesars Entertainment Corporation – CZR
For many years, this has been a landmark in the gambling industry. It has recently turned out to be one of the most interesting stocks to put your money. It is one of the leaders in the gambling industry that most investors are watching and aspiring to invest in.
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7. MGM Resorts International – MGM
If you are a conservative investor and don’t want risks around you, then you can decide to go with MGM. It is trying to get to US betting which will definitely spearhead its stocks and entire market share. It is one of the gambling stocks that has a great presence in China and has been doing well from one year to another.
8. Scientific Games – SGMS
Online Gambling Free
It is one of the stocks that have gained online dominance and beat stiff competition around online casino gaming. It has been a significant company in providing digital gaming services, content, and products. As an infrastructure provider, it has all the chances of growth in this market making it a good stock to watch.
9. International Game Technology – IGT
This is another innovative casino gaming company that is increasing and expanding its digital gaming expertise across the globe. Its live streaming avenue of Dynasty Electronic Table Game (ETG) will provide more games for its players like blackjack and the famous baccarat. With such kind of innovations, definitely, its stock will grow to make it a great gambling stock to put your money in.
10. Playtech – PTEC
This Israel based software developer is one of the popular casino software providers across England. It has its stock listed on the London Stock Exchange. Playtech is an expert in online casino gaming has released over 500 games. It uses some of the most advanced technology in virtual casinos. Considering the vast and fast growth of the gambling industry, if you are an active investor, then you can consider one of the above gambling stocks.
DISCLAIMER:
News, data and statement included in this article is intended exclusively for information purposes.
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It should not be considered a recommendation for the purchase, retention, or sale of the securities referred to herein.