1 Gambling Stock To Buy Right Now And 1 To Avoid

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Gambling companies, especially those offering online gambling services, generated significant returns over the past year as gamblers depended largely on online games given that physical casinos were closed. And with the increasing legalization of online gambling across the U.S., many companies in this space are well-positioned to benefit.

New York Governor Andrew Cuomo signed budget legislation on April 19 that includes the framework for New York’s online sports betting plan, making online sports betting legal in New York. According to ResearchAndMarkets, the global gambling market is expected to grow at a 7% CAGR over the next four years.

Against this backdrop, we think it could be wise to bet on gambling company International Game Technology PLC (IGT) given its solid financials and expansion into Nevada. Conversely, we think it wise to avoid DraftKings Inc. (DKNG) because its lofty valuations are not in sync with its near-term prospects.

Stock to Buy:

International Game Technology PLC (IGT)

Headquartered in London, IGT operates and provides gaming technology products and services worldwide. It operates through two segments: Global Lottery and Global Gaming. The company designs, sells, operates, and leases a suite of point-of-sale machines and provides online lottery transaction processing systems, among others.

On March 3, IGT  announced that it received Nevada regulatory approval for its PlaySports platform for retail and online sports betting. Along with this approval, IGT’s next-generation sports betting technology stack was also approved for deployment throughout the state. So, it is well-positioned to expand its sports betting enterprise in Nevada.

IGT is scheduled to discuss its first quarter 2021 (ended March 31, 2021) financial results on May 11. The company’s global lottery revenue increased 11% year-over-year to $630 million for the fourth quarter, ended December 31. Its operating income grew 138% year-over-year to $96 million.

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