2 Top Stocks That Standout In The Gambling Industry

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COVID-19-pandemic-led restrictions proved to be a massive hurdle for the gambling industry last year because physical casinos had to be closed for a major part of the year. However, companies that provide online gambling services were able to generate significant returns. Along with rising demand for online gambling, the reopening of physical casinos on the nation’s fast-paced and effective vaccination drive should buoy the industry’s growth. According to Research and Markets, the global online gambling market is expected to hit $72.02 billion in 2021, growing at a 12.3% CAGR.

Furthermore, 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. With the increasing legalization of gambling across the country, many companies that operate in this space are well-positioned to benefit. 

Investors’ interest in the gambling space is partly evidenced by Roundhill Sports Betting & iGaming ETF’s (BETZ) 34.8% gains over the past six months compared to the SPDR S&P 500 ETF Trust’s (SPY) 15.3% returns. Given this backdrop, we think it could be wise to bet on fundamentally sound gambling stocks Scientific Games Corporation (SGMS) and International Game Technology PLC (IGT).

Scientific Games Corporation (SGMS)

SGMS develops technology-based products and services and related content for the gaming, lottery, social, and digital gaming industries internationally. The company operates through four segments: Gaming, Lottery, SciPlay, and Digital. It offers electronic table systems, instant lottery products, virtual coins, and digital gaming, among other products.

The company today strengthened its global suite of sports technology, services, and content with the acquisition of SportCast. The acquisition adds BetBuilder features, underlying technology, and quantitative trading models to SGMS’  OpenSports product suite. This could contribute to further growth by the company in the sports betting space.

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