Like many other industries, betting and casino play has had its problems during the COVID-19 crisis. For instance, in the gambling center of Macau, revenue fell by 80% in March 2020 when compared with March 2019.
Much of this was due to the forced closure of casinos as the virus struck. Overall, the industry has suffered from this type of closure as well as some of the consequences listed here. However, it’s not all bad news for online betting and gambling providers and people who want to invest in their shares. Let’s examine this in more detail.
Problems for betting during the pandemic
Starting with the less than positive impact that the pandemic has had on the betting and casino industry, it’s obvious that things could be better in this area.
For instance, land-based casinos and betting providers have been closed in many countries, as the result of lockdowns. This has completely removed the opportunity for people to use the premises and has thereby drastically reduced revenues.
Another hindrance to betting profits has been the cancellation of sport across the world. This has led to restrictions on the number of different sports available to bet on.
Why investors will still look to betting site stocks
Despite the difficulties that betting providers and casinos have faced recently, there are still reasons to be positive when it comes to looking for betting related stocks to invest in.
For instance, DraftKings started trading on NASDAQ in April 2020 at $19.35/share. On July 10 2020, its share value stood at $32.43/share.
As sports start returning, and land-based casinos start opening, in some countries, more people will start to see stocks in casinos and betting companies as a good option.
With this in mind, some stocks to look ar include:
Ladbrokes – GP.22
This stock is on the London Stock Exchange which is currently recovering. The Ladbrokes name is one of the most famous in the UK industry. Normally, this would be a fairly safe investment, COVID-19 aside. However, the current owners of the company, GVC, are currently under investigation by UK tax authorities. So, investors should currently be wary.
NetEnt – NETB
NetEnt is a newer brand than some others but is at the forefront of the industry. This has led to stocks in the company, which sell on the Stockholm Stock Exchange, being popular despite competition.
Stars Group – TSGI
Stars Group is the company behind PokerStars. It has become a mainstay of Internet gambling. The company’s stocks sell on the Toronto Stock Exchange and have a reputation for having a high level of volatility. In May 2020, Stars Group secured an all-share combination with global sports betting and gaming brand Flutter Entertainment plc.
MGM Resorts International – MGM
MGM is a good option for anyone who likes a conservative investment. The brand has a good presence in China and its stocks tend to do well generally. The MGM is also set to benefit from the growth in the legalized sports betting industry in the US which is expected to expand at an annual rate of 8.8% through 2024.
As the restrictions of the COVID-19 pandemic begin to subside, so the opportunities to invest in these types of stock will become attractive to many people.