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Are Online Casino Stocks still a Viable Investment?

Date: Monday, June 10, 2019 7:30 PM EST

A decade ago, Macau was the city of choice for anyone that wanted to invest in casino stocks. But since early 2017, Macau’s revenues have been stagnant, leaving investors to focus on other markets. The online casino industry is fast emerging as a great alternative for stocks investors but it’s not without challenges.

A $50 Billion per Year Industry

The online gambling sector is an ever growing industry. In 2018, the industry steered past $50 billion, officially turning in more revenues than Facebook and other social media sites. The UK, Australia, Malta, and Curacao lead the list of countries that regulate the biggest online casinos today.

These countries all allow investors to set up online casinos in their respective jurisdictions. They have bodies that regulate casinos and discipline those that break rules. The US lags behind in cooperating with online casino business but still contributed at least $4 of the $50 billion the industry earned in revenues last year.

Nonetheless, an industry worth that much means at least one thing: there is plenty of money being made. This doesn’t necessarily mean investing in online casinos will result in automatic profits but the potential is there.

Declining Growth Rate

The remote gambling industry is past its peak meaning the days when investors earned insane amounts of profits after investing in online casinos are gone. The industry’s golden age, the mid and late 2000s, and early 2010s are also behind us.

Despite this, the industry’s annual revenues are increasing at significant speeds. To be specific, the industry is growing at a rate of 10.9% every year and will continue growing at this rate until the mid-2020s. By then, the industry is expected to be worth a whopping $94 billion.

A growing industry is certainly a great place to invest your money. If you invest in the right company, there is only one way for your investment, and that is to earn profits. Of course, not every casino is headed for growth.

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