Mobile casinos remain widely banned in most of the United States. This has long been a source of frustration for gaming and betting enthusiasts, and there have been near-constant efforts to bring about reform. But the lack of playable mobile casinos is also looking more and more like a missed market opportunity for would-be investors in the U.S.
This is something we can suggest fairly concretely, on the basis of the performance and expectations for casino-adjacent activity, mobile games more broadly, and even real-world casinos.
Regarding casino-adjacent activity, we’re primarily referring to the mobile betting apps that have begun to spread through parts of the U.S. Sports betting is being legalized on a state-by-state basis, and as of this writing most states still don’t allow it. However, the companies leading the way in mobile betting activity already look like sound investments. Most notably, DraftKings went public back in 2019 (avoiding a typical IPO process) and has performed quite well since.
The stock was worth just under $10 initially, reached a high of $63.78 by August of 2019, and after a brief dip in the doldrums of 2020, is back up near $60. Now, betting is not casino gaming. But it’s worth noting that in other countries numerous companies offer both activities. Were a company like DraftKings to become a casino gaming provider, investor sentiments would be bullish.
Another point in favor of the development of mobile casino stocks is that right now the most modern online and mobile casino platforms in countries that do allow these games share qualities with America’s enormously popular mobile game industry. At the forefront of the category, Foxy Bingo offers several of the most cutting-edge casino games in the industry, all gathered on a single platform. Titles like Starburst, Gonzo’s Quest, Leprechaun’s Magic and more demonstrate how improved visual and thematic quality has transformed casino gaming into something more like traditional video gaming. Additionally though, the site has such as a massive collection of casino titles that it speaks to another interesting point: that mobile games benefit from variety.
What makes the mobile medium so popular with U.S. gamers is in part the limitless variety it provides. Recent reports on mobile app revenue indicate that gaming profits have absolutely skyrocketed in the last five years, on the back of almost uninterrupted growth. This is at least in part because the category offers constant improvement and expansion. Now, casino gaming tends to be somewhat uniform in terms of actual gameplay. But the aforementioned platform shows that within the category there is somewhat similar variety. U.S. gamers reward new themes and innovations from game developers, and would likely reward mobile and online casino platforms similarly.
We also mentioned the performance and expectations of real-world casinos as grounds for lucrative mobile casinos in the U.S., and this is actually something we wrote about recently. Famed analyst and TV personality Jim Cramer has let it be known that he believes casinos in the U.S. will have a “huge year” in 2021, potentially leading to soaring stock prices following the difficulties of 2020. This prediction is partly a function of COVID-19 and the expectations regarding recovery. But it also speaks to the popularity real-world casinos still enjoy among Americans. In theory, this same popularity speaks to appreciation of casino games themselves, which many would enjoy being able to play on mobile devices.
Despite all of this, legal mobile casino gaming in the U.S. does not seem to be particularly imminent, at least on a nationwide basis. But these factors still indicate that there will be a strong market if and when casino gaming does come to America.
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