The casino industry averaged $263.3 billion in 2023 alone! And with a CAGR of 6%, this figure is set to keep growing.
So, how can you take advantage of this upward trend? One option that has appealed to millions is playing casino games. After all, finding the best online casinos for US playershas become easy due to the increased number of online casino sites. With some practice, anyone can start winning on these sites and being part of the people profiting from the industry. Another option is to open a casino site, which may not favor many people due to the capital entry barriers. And the third? – Investing in iGaming stocks! We look at how this works and the best options in the US:
Investing in iGaming Stocks
Playing casino games is a great way to make money, as you require little capital to start. But what if you want a piece of the cake such that you win as the house takes its share? The secret lies in investing in iGaming stocks. These give you partial ownership of the companies behind casino games, enabling you to profit from their growth. Below are suitable options for all investors:
- Churchill Downs Incorporated
This entertainment company, founded in 1875, offers varied experiences to its clients, from sports wagers to casino games.
- Sports: Punters who enjoy varied betting selections can rely on this company for variety. It has more than 3,000 racing machines based in Kentucky. For players who want an online experience, the company also operates an online sportsbook highlighting horse races and other major sports, enabling punters to place bets from the comfort of their homes. And with seven retail sportsbooks, punters are spoilt for choice.
- Gaming: This company operates physical casinos in eight states, boasting thousands of slot machines and hundreds of table games. It also has an online gaming platform where players can enjoy online games, including traditional casino games like poker.
Thanks to this wide coverage, the company’s stocks have increased in value. Per an April 2024 assessment, stocks offered an ROE (return on equity) of 45.43% with a net margin of 16.95%.
- Monarch Casino & Resort.
This company, incorporated in 1993, makes money by operating physical casino hotels. It owns the Atlantis Casino Resort Spa in Reno, Nevada, which offers a luxurious casino experience and exquisite hotel facilities. It also operates the Monarch Casino Resort Spa in Black Hawk, Colorado. Thanks to its thousands of slot machines, tens of table games, and indulgent experiences, it has become a mainstay.
Its numbers match its reputation, boasting an ROE of 17.41% and a net margin of 16.44% per an April 2024 report.
- Boyd Gaming
This gaming corporation, founded in 1975, has several subsidiaries that have enabled it to further its reach. Not only does it operate physical casinos, but it also runs several online casinos that enable players to enjoy interactive social experiences. Its latest investments in the social casino industry have also paid off, as evidenced by its growth.
Per an April 2024 report, the company has a 36.97% ROE and a net margin of 16.58%.
- Las Vegas Sands.
This corporation, founded in 1988, has made a name for itself by owning and operating casino resorts in Macao and Singapore. These fully-fledged casino resorts are known for their all-rounded approaches, which include state-of-the-art accommodations, beautiful malls, and thriving entertainment. This giant has also dipped its toes into the live dealer casino world, enabling it to keep up with the fierce online competition. Not surprisingly, this has worked in its favor, as it boasts a 34.40% ROE and an 11.77% net margin.
- MGM Resorts International
This company has operated since 1986 and is a household name in the casino industry. It owns and operates casino resorts in the US and beyond, offering exclusive experiences to players who want to enjoy interactive yet indulgent gameplay. Besides its physical locations, this company offers players online casino experiences, boosting its market reach.
Per an April 2024 report, the company had a 20.51% ROE with a net margin of 7.07%.
So, how should you choose where to invest your money? It’s always great to start by assessing your financial goals from the onset. Are you investing to earn dividends, or do you wish to sell shares? This decision informs which stocks are best for you based on their dividend strength, projected growth in earnings, and overall sustainability.