Are Gambling Stocks a Worthwhile Investment in 2024

In a nutshell: yes. In broader terms: yes, with a grain of salt and some extensive research. This is a guide on how to invest in gambling stocks in a reasonable and hazard-proof way.

The extensive growth of gambling sites has been a major global business phenomenon in the last few years. The availability of advanced smartphones is the main reason for this development. As mobiles have entered almost every pocket on this planet, so have gambling and betting mobile apps. Amidst these changes, a person playing online poker in Liverpool, someone betting on NBA matches in Johannesburg, and a punter trying free spins in Buenos Aires have equal chances of hitting the bull’s eye. 

Hence iGaming providers have stood shoulder to shoulder with the existing brick-and-mortar casino companies in terms of their business potential. 

So, how to invest in gambling stocks without gambling with stocks?

For starters, look at the scoreboard because numbers don’t lie. If an iGaming company has been growing at a steady rate year after year, it’s a good sign for a potential investor. However, check out the type and number of platforms that such a company runs. For instance, the value of many offshore casinos has been steadily increasing in recent times, but it doesn’t mean that investing in such options is the best stock-investment deal. Closely related, buying cryptocurrency might be a slightly better choice because Bitcoin, Dogecoin & Co have been with us for more than a decade. Even though we don’t always know where their worth will fall or grow, the peaks they’ve reached speak in favor of their durability. 

On the other hand, the companies behind offline, i.e., traditional brick-and-mortar casinos, offer more conservative investment opportunities, but still more dynamic than some other stock companies. For illustration’s sake, an enterprise running a few Las Vegas casinos for decades is more similar to non-gambling companies than to some fast-growing, unpredictable iGaming players. 

And if we compare these two to investing in the S&P 500 or other index funds, the latter look way more conservative. For instance, the average growth rate of the S&P 500 has been 10% in the last five decades. Many iGaming platforms are growing at a much faster pace now but we certainly don’t know whether they will retain an average of 10% growth over the following five decades. What’s more, buying stocks of any gambling company that hasn’t been listed on a stock exchange is more time-consuming and knowledge-demanding than getting the ones available through a stock exchange. Those who possess enough time to gain the necessary knowledge thereof, though, should dedicate a certain share of their investment to such options. Speaking of which, probably the wisest thing you can do when making any kind of investment is to diversify your moves. So, you should have stocks of iGaming companies, crypto gambling sites, and traditional gambling providers in your portfolio. 

Additionally, make sure there are some high-performing tech companies’ stocks there, and invest in index funds, as well. Specify the percentages regardless of the available monthly sum and you’ll keep the portfolio share the same. Finally, adapt the investment plan a few times of year, based on the current market situation with each of the business players in your portfolio.