Investing in gambling: Is it worth it?

investing online

Disclosure: This post may contain affiliate links, meaning we get a commission if you decide to make a purchase through our links, at no cost to you. Please read our disclosure for more info.

Last Updated on July 19, 2021 by Shopping Kim

The games of chance are those in which the probabilities of winning or losing depend exclusively on the capricious fortune.

investing online

These may or may not be accompanied by bets. The context in which they develop is usually varied, being able to produce around a table (Poker, roulette, cards, bingo, etc.), in some establishment via purchase of lotteries and / or sports bets, or online like mr.bet slots, having all available the existing game modes.

In this economic sector, it is necessary to clearly differentiate between the public sector, which finds an alternative way of financing through the different national lotteries, and the private sector that, adapting to legislation and taxes, tries to achieve a niche market. 

Why invest in gambling

We have the possibility to approach a casino and bet our capital to red or black, but you should know that the probability is against you and that the bank always wins. So we would do better by going for current, betting on the stronger side, which is usually the smartest investment option.

The gaming sector offers continued growth year after year, as can be seen in the following graph. Removing a short decrease in revenues in 2015, the rest of the years are positive. It enjoys economic stability in times of crisis much greater than other leisure sectors. Although the players cut back the money spent on gambling, there was compensation through the increase in the number of bettors.

There are clear possibilities for increasing business activity, with mobile games and bets having a predominant weight, finding greater potential growth in the Nordic countries and in Europe in general. We must also consider the emergence of China in the world of gaming, having recently overtaken the quintessential hegemonic gambling market, the United States. Thanks to Macao especially, which is where the game is concentrated in China. In the rest of Asia there are remarkable growths, but not affordable with the Chinese boom.

The online game is having an unprecedented global expansion, still having a strong capacity for growth over the coming years. It is estimated that in 2018 this type of products will grow 4% worldwide. From a global perspective online game only represents 8% of the global game market, so it has room for improvement.

The distribution of the online market between the different countries is as follows:

Income gambling betting casinos

It is worth mentioning the great importance that bets are taking, and in particular online sports betting. They have been publicized notably through sports sponsorships, and through huge advertising campaigns. Gambling is deeply rooted in all societies since time immemorial. In addition to the pros we must also mention the cons. There is a ban on gambling in some countries, such as Switzerland. This prohibition extends to the Internet, since it is considered that 56% of the world population faces some type of prohibition related to online gambling.

Each country and sometimes each community has different legislation. What makes it difficult, to think about a global market. The products related to the game suffer high tax rates from the governments of the different countries. In Spain, putting a slot machine in a bar, means having to pay the Treasury an average of 3,600 euros a year.

Now let's see what investment vehicles we can use to invest in this sector.

Galaxy Entertainment Group [HKG]

The company  is dedicated to tourist accommodation, construction and gambling. It owns and operates, hotels and casinos in Macao. Listed on the Hong Kong Stock Exchange.

Las Vegas Sands Corp. [LVS]

It is a company of resorts and casinos based in Las Vegas. It was founded in 1988 and its president is Sheldon Adelson one of the richest men in the world according to Forbes magazine. The company owns the famed Venetian casino / hotel. The company is listed on the NYSE (LVS).

Aristocrat Leisure LTD [ASX]

Australian company based in Sydney, dedicated to the manufacture of gaming machines. It is the largest company in Australia dedicated to such tasks and one of the largest in the world in the manufacture of slot machines. Listed on the Australian Securities Exchange.

And others

It can be concluded that investment in the gambling world is not as scary as one might imagine. Especially with the dominance of online casinos, you can play gambling games online while thinking about the best ways to invest in this challenging world. Hopefully this article awakens you that you have “more than a thousand paths” to invest.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.