The gambling industry is a very fast-growing and profitable one. The best gambling stocks to buy in 2021 have been around for a while and offer the newest technological advances to their customers. This article will discuss these best gambling stocks and how real money slots online are connected to them, as well as the important things to keep in mind when choosing the gambling stocks to buy. Keep reading.
Best gambling stocks to buy in 2021:
- Boyd Gaming Corp.
- DraftKings Inc.
- Wynn Resorts.
- Gaming and Leisure Properties Inc.
- Melco Resorts & Entertainment.
Boyd Gaming Corp
Boyd Gaming is a nationwide leader in the gaming industry, and it’s no surprise they have been on an upswing. The regional markets have been a growth area for Boyd Gaming, one of the most prominent players in the field. Even though it has a massive presence in Las Vegas, Boyd Gaming isn’t reliant on the Las Vegas Strip, which is highly touristic.
It has been able to get back on its feet because it focuses on more local casinos in 10 states. It’s the best-performing casino operator thus far in 2021, posting a better-than-40% return, and it also has an extensive sportsbook and online gaming business, making it a stock worth considering purchasing for the post-pandemic comeback.
With a market capitalization of over $20 billion, daily fantasy sports site DraftKings is one of the household names. Since its initial public offering in April 2020 through a special-purpose acquisition company, it has appreciated by 165%. Analysts still fancy DKNG, continuously rating them on an “outperform” basis and at current prices already realizing nearly 40% gains for those who jumped ship.
The company has also been making substantial efforts to strengthen its position in the market, becoming one of the NFL’s sports betting partners and announcing its acquisition of Golden Nugget Online Gaming Incorporated (GNOG) last August. They are also reportedly pursuing a $20 billion offer for Entain Ltd., an up-and-coming UK-based firm that holds major stakes within several different forms of gambling, including soccer/football wagers as well as horse racing events from various tracks around England.
Macao’s VIP and mass premium audiences, who visit the city, account for the bulk of Wynn Resorts’ revenue and profit. While some relief may be on the way after the COVID-19 pandemic, which severely interrupted operations, the company still believes that things will return to normal as most travel limitations have been lifted.
Macao’s monthly gaming revenue increased by more than half in February, yet that was an inadequate bar to clear. However, there is optimism that the high rollers will soon return both here and abroad, allowing the world-class resort to thrive again.
Gaming and Leisure Properties Inc
Gaming and Leisure Properties is a triple net lease real estate investment trust that owns 44 casino properties in the United States and leases them to casino operators. The company’s recent collaboration with Bally’s Corp. (BALY) has already generated over $60 million in annual rent and $500 million in acquisition financing.
According to documents and filings, GLPI has a history of developing and sourcing contracts in a unique way. It appears that it is growing and diversifying its tenant base as it pays investors a 5.7% dividend. Bank of America has placed a “buy” rating as well as a $55 price target for Gaming and Leisure Properties Inc. stock.
Melco Resorts & Entertainment
Melco Resorts & Entertainment (NASDAQ: MLCO) is a gaming company based in Hong Kong that primarily focuses on Macao. Apparently, Macao is the only place in China where gambling is legal. The firm has an integrated resort in Manila and recently hinted at plans that are underway for one in Cyprus by 2022.
Melco is not immune to the devastation caused by the coronavirus pandemic, as, like all other Macao-dependent resorts, its operations have been severely harmed. Even though the area has been open since February 2020, travel restrictions have impeded its recovery. Monthly gaming revenue was down 80% last year and is currently only slightly better; it should improve steadily this year nonetheless.
How Do You Choose the Best Gambling Stocks to Buy?
5 Important Factors to Keep in Mind
While one can’t say for certain what the future holds, many say that investors who play it safe and diversify their portfolios with a number of different stocks stand to make more money than those who don’t. While one also can’t predict the future, it is possible to choose companies that appear to be poised for success in 2021 based on certain criteria like:
The Depth and Breadth of Product Offerings
This is the most important factor when deciding what companies to invest in. For example, if you’re looking for gambling stocks with high-growth potential, you’ll want to look at companies like NFL’s sports betting partners and Golden Nugget Online Gaming Incorporated (GNOG) that are expanding their services by acquiring other firms in related industries; this way, they will be able to expand both horizontally and vertically within the industry.
Newer gambling companies have a real chance of becoming big players if they offer something unique or have a leg up on their competition through some type of competitive advantage. This often comes from having a longstanding reputation, an innovative product, or an experienced management team. To get a real sense of who might emerge as a real contender over the next year or two, it’s always best to look at those that have been around for a few years and have had time to build up some momentum.
The Revenue Streams
Look at whether a company is taking bets from within its own clientele, whether an outside party places the bet, if real money games are involved, or if there are any other unique revenue streams being generated by the company itself. A vertically integrated gambling firm will have more control over its growth path and may be less vulnerable to changes in market conditions. These companies can also offer better products because they aren’t beholden to outside forces that don’t value their pokies as much as their competitors.
Growth Potential, Marketability and Scalability
Some gambling companies are better poised for success because they can become all things to all people. This means they can offer an extensive enough product catalog and clientele to make them attractive to a wide range of potential players. If you’re investing in this sort of company, it’s very important to look at their competitive advantage, market position, industry trends and potential growth opportunity, etc.
The Bottom Line
There are a number of different companies out there that you could invest in if you want to own the gambling stocks market. While some investors are risk-averse, others look for high-growth potential and accept more uncertainty as part of the equation. No matter what type of investor you are, there’s a gambling company out there that fits your needs and risk tolerance.