Online gaming can provide hours of entertainment, whether you prefer slot machines, live dealer games, or traditional options such as roulette.
With big money prizes and jackpots up for grabs, it is possible to be a winner.
But there is another way to make money from gaming, and it has nothing to do with playing. The most obvious option is the stock market. By opting to invest in the best stocks, you could reap the rewards of the increased demand for stock services.
There are lots of online gaming in the market, and some represent better opportunities than others. There are also wider online gaming options to consider.
To create a balanced portfolio, it’s wise to spread your risk and diversify across the sector. You could use a top stock-picking service Here are our suggestions for gaming stocks that could deliver real profits for 2023 and beyond.
Entain
Previously known as GVC Holdings, Entain is a company that has many top-performing brands under its umbrella. One of the jewels in their crown is the globally recognized PartyCasino which offers the very latest slot titles as well as a variety of table and live games.
With sports events canceled globally in 2020, there should have been intense pressure on the share price of Entain. This would have been compounded by the departure of not only its long-standing CEO Kenny Alexander but also his successor, Shay Segev. Yet despite being an unsettled period, Entain has emerged as a winner, with the share price at the end of 2020 testing an all-time high and a new CEO in place, Jette Nygaard-Andersen.
This momentum has continued into 2022, and if the company’s own forecasts are correct, the share price is set to push higher still over the coming years. Prior to his departure, Shay Segev predicted that Entain would double or triple in size in just five years. A bold prediction, indeed, but one that seems to be rooted in reality.
Analysts are certainly supporting the optimistic forecasts for Entain, and that’s partly because the company has a considerable advantage. With their own proprietary technology, Entain can acquire new customers more quickly, cheaply, and effectively than its competitors.
There’s also a lot of room for expansion. Although the UK has a robust digital industry, it’s still in its infancy elsewhere. This leaves a lot of potential for penetration, taking advantage of the capability that Entain has in-house.
And all of this is being offered against a commitment to fair play and protection for players, another hot topic right now. Entain has recruited a team of experts, including psychologists, which they believe will allow them to utilize their tech to understand and offer more significant support.
MGM Resorts International
Like many companies, 2020 was a challenging year for MGM Resorts International. A sharp fall for the industry in March 2020 proved a challenge to recover from, especially in the face of ongoing economic circumstances.
As a global brand with branches all over the world, MGM was very exposed to volatility. Despite this, by the end of the year, stocks and shares were steadily recovering and eventually managed to more or less break even for 2020.
This resurgence has continued for 2021, and MGM is seen as one of the leading gaming stocks, which is likely to do well. With its Macau branches re-opening, plus its presence in Vegas, experts predict that punters will return in droves in 2022.
2021 didn’t start particularly well for MGM as it walked away from a potential takeover of its partner, Entain. After making an $11 billion bid which was refused for being undervalued, MGM chose to let the matter drop rather than making a higher bid.
Despite this blip, MGM has continued to perform well in 2021, and it has a very successful partnership with the subject of the proposed bid. Launched in 2018, Entain and MGM joined forces to launch the BetMGM, a sports betting app which has already proven to be a huge success.
The USA is gradually legalizing betting and gambling on a state-by-state basis, and MGM is poised to take full advantage. In January 2021, it rolled mobile sports and gambling betting to Pennsylvania, adding to its existing portfolio.
fuboTV
With a history as a live-streaming broadcaster, fuboTV already had an interest in the sports market. However, in December 2020, it took a more definitive step to become involved by buying out Balto Sports, the popular fantasy sports company.
While DraftKings and FanDuel are market dominators at the moment, the potential for fuboTV shouldn’t be dismissed. Sports betting in the US is an area that’s exploding with interest. By the end of 2021, it’s expected to be worth $2.5 billion and expand to $8 billion by the end of 2025. This predicted growth means there is plenty of room for smaller players to make their mark and achieve success.
fuboTV also has a fascinating model now, one that’s not easily matched. By pairing its editing live-streaming sports TV with a betting facility, audiences can now enjoy an integrated service.
The CEO of fuboTV has described how they believe there’s a substantial overlap between those who want to bet and those who use their live streaming services. So, combining the two should offer profitable opportunities.
The number of subscribers to their channel tripled in size in the final quarter of 2020. And the amount of content streamed in 2020 was up by 82% compared to 2019. The future looks even brighter, thanks to a pending partnership with Caesars Entertainment.
Currently awaiting regulatory approval but expected to launch in the last quarter of 2021, it will give fuboTV access to the markers in New Jersey and Indiana.
Scientific Games
The online gaming industry is primed to explode, with a rapidly expanding interest globally in the market. This puts stocks at the front of the action, but they can’t achieve the necessary without someone providing the tech.
And that is why Scientific Games are also one to watch for 2021 and beyond. As one of the top providers to the industry, Scientific Games delivers the services, content, and technology that online gaming hubs need.
2020 wasn’t easy for Scientific Games, like many other companies in their sector. The global disruption to physical services contributed to a downturn of 11.7% year on year. However, the indications for a rapid bounce back and a surge in value are clear to be seen, and the company hasn’t been slow to continue to drive its ambitions.
A cross-licensing agreement with one of its competitors, IGT, means that these two giants of the industry will be joining forces for cashless gaming.
Other recent developments include moving into Pennsylvania and integrating into its OpenGaming system of a new customizable jackpot, courtesy of BlueRibbon.
All of this, plus its OpenSports tech, which Paddy Power and Flutter use, means that Scientific Games will be one of the big winners as the sector expands.
The share price is already 1100% higher than when it bottomed out in 2020, but experts predict there’s much more upside to be found in the months and years ahead.
Conclusion
There you have it – the four gaming companies where you can trade stocks for this 2021. Let us know in the comments your experience doing stocks with these companies.
