When it comes to stocks you can buy stocks from several companies that are selling shares of their companies at reputable stock exchangers. Gambling stocks are currently a hot topic for several stock exchange enthusiasts and professionals.
There have been big changes in regulations for sports gambling across the US which could lead to a massive increase in stock prices of companies that implement sports betting on their platforms. In this article, we’ll go through what gambling stocks are and the massive potential they’ve got for 2021.
What are Gambling Stocks?
Stocks are a share of the company that is registered to sell portions of its company on the stock market. Gambling stocks are just that, It’s a share of the gambling company. The gambling company can decide on how many stocks it would like to sell and these stocks are traded, and the success of the business will either drive the price up or down depending on if good or bad news is released. We anticipate that 2021 will be a good year for gambling stocks.
Gambling stocks are exchanged and traded on several stock exchanges. Two of the top stock exchanges in the US include:
- New York Stock Exchange (NYSE)
- Nasdaq
These two companies have massive market caps. The NYSE is the biggest with a market cap of $19.3 trillion while Nasdaq has a market cap of $13.8 trillion. In case you were wondering, the world’s biggest stock exchange is the NYSE. The top 10 exchanges across the world are here www.marketinsider.com.
Why Will There Be a Price Pump?
The gambling industry has been significantly growing over the past 3 years within the US specifically. This has occurred due to the fact that gambling, in general, had been slowly legalized across several states. In 2018 the gambling industry raked in $6.5 billion, in 2019 a massive $13 billion was made. This was due to the legalization of online sports betting in the US. However, several of these betting forms were restricted. In 2021, some of these restrictions may be lifted which could lead to a massive increase in stock prices.
Currently, two new states, Virginia and Michigan are set to release sports betting for online/mobile devices. This will lead to several companies taking advantage of a larger market audience in two big states. There is also expected action to occur with gambling laws in the states of:
- North Carolina
- Ohio
- Massachusetts
- Connecticut
- Georgia
- Nebraska
There are still states which we’ve heard no news from in terms of easing restrictions for online sports betting. Those states currently include:
- Nevada
- Mississippi
- Montana
What Does This Mean for the Industry?
With two states releasing online/mobile sports betting in their states, several providers will start to bring their sportsbooks to the market. Companies that were previously struggling with the restrictions on sports betting will have the pressure eased as opportunities will start to arise.
The consensus seems to be that other states will begin to ease restrictions and allow online sports betting. Slowly this will cause a domino effect and result in almost all states passing similar laws. The industry will start booming as an influx of money will start pouring into these casinos and sportsbooks. This will inevitably increase the stock prices of several gambling companies.
Yearly Returns On Gambling Stocks
As there have been some great gains for yearly returns for several gambling stocks, here is a list of some of these stocks and their crazy returns:
- Gravity Co Ltd ADR: 433.29%
- Penn National Gaming, Inc: 286.25%
- Bally’s Corporation: 100.90%
- Boyd Gaming group: 66.83%
- Scientific Games Corporation: 63.67%
- Churchill Downs Inc: 46.20%
- Elys Game Technology Corp: 32.45%
- Caesars Entertainment Inc: 29.76%
- International Game Technology Inc: 19.86%
- Full House Resort Inc: 18.30%
The US. News has in-depth information on each of the stocks mentioned above, including what they do within the gambling industry.
Conclusion
In the past 3 years, we’ve seen a surge in stock prices for several gambling companies. This occurred even though there were still restrictions in sports gambling across multiple states. This time around when the restrictions are lifted even more hopefully in 2021 expect a significantly higher increase in stock prices.
