The gaming industry is undergoing a profound transformation, driven by the rapid expansion of online gambling.
Recent estimates from Insider Intelligence reveal that the United States is poised to witness a staggering 45% surge in the amount of money wagered on sporting events, reaching a remarkable $137 billion by the end of this year. What’s even more remarkable is the astonishing growth in iGaming – the practice of betting on traditional casino games through online platforms. In just the first quarter of 2023, iGaming revenue experienced an impressive 22.7% surge, hitting a new record of $1.48 billion. In stark contrast, brick-and-mortar casinos generated a total of $12.30 billion during the same period.
This surge isn’t exclusive to the U.S. alone. The heart of the gambling world, Macau, has witnessed an extraordinary resurgence. Macau’s gross gaming revenue has surged by nearly 10% in comparison to June, and a staggering 40-fold increase when compared to the previous year. Industry experts at Morgan Stanley are anticipating robust second-quarter metrics from Macau casinos, further solidifying the region’s prominence in the global gambling landscape.
Given the undeniable strength and potential of the gambling sector, savvy investors are keeping a keen eye on gaming stocks that show remarkable promise and potential for substantial returns.
**MGM (MGM):** A Powerhouse on the Rise
MGM has emerged as a true powerhouse in the industry, boasting an impressive 21% surge in its top-line revenue during the last quarter, as compared to the same period in the previous year. A significant contributor to MGM’s success is its online betting joint venture, BetMGM, which reported an astounding 76% year-over-year increase in net gaming revenue, totaling a remarkable $476 million in the first quarter alone. MGM’s influence extends even to China, where its casino revenue experienced an astonishing 454% year-over-year increase, soaring to an impressive $670 million.
**DraftKings (DKNG):** A Rapid Ascent
DraftKings is another standout player that has witnessed a rapid expansion, with a remarkable 88% increase in its top-line revenue during the previous quarter. This impressive trajectory has paved the way for the company to enhance its full-year revenue projections, with expectations of entering the realm of profitability as early as the next year.
**Flutter (PDYFY):** Dominance in the U.S. Market
Flutter, the owner of FanDuel, has secured a commanding 50% share of the U.S. sports betting market. This strategic positioning has translated into significant revenue growth and robust cash flow from operations. As the U.S. sports gambling arena continues to expand, Flutter’s outlook remains tantalizingly attractive.
**Las Vegas Sands (LVS):** Unveiling Opportunity
Considered a top pick due to its substantial leverage within the Chinese gambling sector, Las Vegas Sands has not only showcased strong revenue and operating income growth, but it has also taken a significant step by resuming its dividend distribution.
**Melco Resorts (MLCO):** Riding the Macau Revival
Benefitting from the remarkable Macau recovery, Melco Resorts emerges as a noteworthy contender, boasting an attractive valuation and displaying strong results during the second quarter.
**International Game Technology (IGT):** Positioned for Global Expansion
With its finger on the pulse of the global casino proliferation, International Game Technology is ideally positioned for success. Positive growth in both revenue and adjusted EBITDA highlight the company’s promising trajectory.
**Roundhill Sports Betting & iGaming ETF (BETZ):** A Holistic Approach to Investment
For investors seeking comprehensive exposure to the burgeoning online gambling sector, the Roundhill Sports Betting & iGaming ETF (BETZ) offers an enticing avenue for potential investment opportunities. This exchange-traded fund provides a well-rounded portfolio of companies operating in the dynamic world of sports betting and iGaming, capitalizing on the sector’s exponential growth.
As the gaming industry undergoes a remarkable evolution, the surge in online gambling is turning heads and raising eyebrows. The numbers speak for themselves – with an anticipated 45% increase in money wagered on U.S. sporting events this year and a staggering 22.7% surge in iGaming revenue in the first quarter of 2023, reaching a record-breaking $1.48 billion.
In the midst of this digital gaming revolution, opportunities for investment are aplenty. MGM, a standout player, boasts a remarkable 21% rise in revenue and an astonishing 76% increase in net gaming revenue from its online betting venture, BetMGM. Meanwhile, DraftKings shines with an 88% surge in top-line revenue, hinting at future profitability.
But the allure of online gambling doesn’t stop there. Imagine play the latest roulette games online, taking advantage of the industry’s exponential growth. As brick-and-mortar casinos generated $12.30 billion in the first quarter of 2023, online gambling’s allure continues to captivate, making names like Flutter and Las Vegas Sands promising contenders.
Riding the wave of the Macau resurgence, Melco Resorts and International Game Technology showcase strong performance and potential for growth. For a comprehensive experience, the Roundhill Sports Betting & iGaming ETF (BETZ) offers a tantalizing avenue for investment. In this age of transformative change, playing the latest roulette games online is just one piece of a much larger puzzle, filled with opportunities waiting to be seized.
In conclusion, the landscape of the gaming industry is undergoing a dramatic shift, with online gambling taking center stage as a driving force behind unprecedented growth. From industry giants like MGM, DraftKings, and Flutter to the promising resurgence of Macau’s casinos and the global presence of International Game Technology, the world of gaming stocks is brimming with potential. For investors looking to capitalize on this thrilling wave of transformation, exploring the offerings of the Roundhill Sports Betting & iGaming ETF could prove to be a strategic move. As the sector continues to flourish, the allure of gaming stocks shines brighter than ever before.