Gambling is a phenomenon that is alive and growing at an unprecedented rate. Land-based casinos have been around for a long time. We observed a bit of decline in their popularity during Covid-19, but the online gambling industry helped in keeping them popular.
Online betting sites recorded a surge in the number of users where they acquired new players. The sites have been gaining popularity, albeit gradually, in the 21st century, but they reached a new high during the pandemic.
Moreover, the sites helped to save many players from boredom. Even when sports betting was on halt, gambling sites utilised esports to keep the betting market fluid. In fact, e-sports betting became a core component of gambling. More importantly, online casino games came forth as the gamblers’ go to games.
The point is that everywhere you look, online betting sites are on the rise and can be regarded as a good investment opportunity. This post aims to keep all such developments in mind and discuss gambling stocks and the scope for investment in 2021.
Investing in online gambling stocks
We covered a few pointers regarding the growth of betting online. But it is important to note that it is further expected to grow in 2021 as per the new trends. Innovation in gambling aims to enhance user experience and to make it more secure.
In India, the statistics for the number of users in 2020 stands at a staggering 365 million, and it is expected to reach 510 million users in 2022. The point is that as the number of users will increase, the investment landscape in online gambling stocks will expand, too.
When to buy the stock
The basic answer to purchase gambling stocks is when the market is looking up. But you should look at the circumstances that influence the stocks and not limit the research to checking the temporary increase in stock price.
For instance, the removal of PASPA (Professional and Amateur Sports Protection Act) 1992 paved the road for states in the US to legalise online betting. This shot up the price for multiple publicly traded gambling stocks.
Moreover, the online gambling industry is expected to grow at a rate of 14.28% in North America, and in India, its popularity is rising every day. The state and regulation bodies are looking at the profit and growth rates, and they are passing laws accordingly. You should keep all such circumstances in mind before purchasing the stocks.
Utilisation of technology
Another example will be the utilisation of state-of-the-art betting technology without which gambling sites are practically useless. You need to look at the type of betting technology a platform is utilising and how it will pan out in the future. For instance, look at virtual or augmented reality in the gambling industry, which is likely to enhance the interests of bettors and acquire new punters, too.
Betting technology will define the future of gambling. Hence, keep an eye out for such developments. Or, conduct research that enables you to make informed predictions regarding the matter.
Here are a few essential takeaways from the article:
- The interest in the online gambling industry catapulted during the covid-19 pandemic.
- The growth rate of the industry and the users is expanding the investment landscape for online gambling stocks.
- Look at the multiple circumstances that are or will affect the stock price and the gambling industry.
- Check the developments in the technology aspect or how the betting industry is steering innovation to enhance users’ gambling experience. More importantly, how it will pan out in the future in terms of economic growth.