Over the past decade, gambling stocks have been a safe investment. Recently, there has been a trend of laxer legislation around the globe concerning the activity, as governments seek to reap tax revenues from sportsbooks and casinos. The online sphere is booming, as estimates say that it should hit a market size of $127 billion by 2027. Nowadays, there are even many mobile Casinos for US players, something that was unfathomable a few years back.
Concerns that the upward trajectory of the sector may not be maintainable include changes in gambling demographics and the inclination that millennials are not as interested in the activity. However, as gambling becomes less taboo, new markets will pop up, and today, technology makes it easy for anyone to bet from the palm of their hand.
Worldwide Gambling Legalization
In 2018, the Supreme Court struck down the federal ban on sports betting in the US. Many states immediately took advantage of this opportunity, and even more, are getting ready to do so. Sports betting is growing in Africa, and while Asia remains divided, the activity is gaining popularity in countries like Japan. In South America, it is widely available and super-popular.
Casino gambling is also getting legalized following a similar pace. In the US, online casinos are now legal in Pennsylvania, Delaware, and New Jersey. Many countries are looking to legalize them as residents are already playing online casino games at offshore sites. Seeing as gambling is a cornerstone of the tourism industry, making it available at land-based venues should help boost local economies.
Partnerships and Mergers
Since sports betting is becoming mainstream, many gambling operators are teaming up with other entities to grow the sector. The NBA was the first sports league to partner with a betting sponsor, as it struck a deal with MGM Resorts. In the past year, ESPN brokered deals with fantasy sports provider DraftKings and UK-based gambling giant William Hill. The first became its exclusive provider of daily fantasy sports, while the latter is now its official odds supplier.
Gambling companies are not only closing deals with giants in other industries but also among themselves. In 2020, Eldorado Resorts completed a $17 billion acquisition of Caesars Entertainment, and William Hill is now looking to merge with Caesars’ online casino business.
Online Gambling Is Rising
Due to the rise of the smartphone and wide-spread availability of high-speed internet, online gambling is rapidly growing. Online casinos and sportsbooks feature promotional offers, betting options, and diversity the likes that players cannot find at their land-based counterparts. They let people experience the thrill of gambling from the comfort of their homes.
Today, there are almost zero security issues when it comes to placing bets online, and players do not have to worry about platforms not paying out winnings. Regulation is also growing tighter as the sector expands. In recent times, operators have become required to comply with high customer services standards given the handling of data and finances in a practice known as Know-Your-Customer checks, as overseeing financial institutions monitor the industry far closer than before.
