Top 5 Gambling Stocks for Investing Money in 2019
The gambling industry is very lucrative if you invest wisely. There are two ways to earn from gambling. For instance, as a sports lover, you can bet on your favorite team with the hope that they will win in an upcoming match. Yet, there is another smarter way which is to invest your money in the stocks of a gambling company.
Here, we will discuss five gambling stocks you should consider investing in to get a nice return. Each of this company is a standout and guarantees great potential as gambling gathers steam. This information will help you make the right decision when you choose to invest in gambling stocks. Let’s delve into it right away!
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Churchill Downs (CHDN)
Price (Nasdaq): $91
Churchill Downs is a well-known name among lovers of horse racing especially Kentucky Derby. It is famous for its race track, where the key championships take place.
Churchill Downs has large stakes in 4 race tracks in 4 different states within the US. It also has properties with gaming operations such as hotels and casinos. With the positive outlook for making sports gambling legal in the US, Churchill Downs is in pole position to make its robust presence across numerous US states.
It currently has two casinos in Mississippi with plans to launch more; this would make Churchill Downs the leading gambling company in the area. It also has an online gambling platform known as TwinSpires and rated as the leading wagering website in the US. Over the last year, TwinSpires’ popularity was on the rise with an estimated net revenue for the year 2018 pegged at $291.5 million, up 13.5% from 2017. There is also a projected increase in coming years as sports gambling grow.
Churchill Downs as a well-known brand plans to leverage on its strong technology to explore other areas in the sports gambling industry. This is one of the reasons why you should consider investing in CHDN as it has the potential to yield great profit.
Las Vegas Sands Corp. (LVS)
Price (Nasdaq): $65.6
Globally, Las Vegas Sands is ranked as the most valuable gaming company with a decent market capitalization of over $50 billion.
The company is founded in the US and also owns properties on the Las Vegas Strip – Palazzo and Venetian. Most of its business and revenue comes from sources outside the US though, with just 11% earned domestically.
The primary driver of its revenue is from Macau, the only district where gambling is legalized in China. In 2017, Macau casinos operating under the brand generated revenue of over 5 times of what was generated in the Las Vegas Strip. Profit is believed to soar in the coming years as there will likely be a gambling boom across Asia. This is one of the reasons why you should consider investing in this company’s stock.
PlayAGS Inc (AGS)
Price (Nasdaq): $24
This gaming company is a relatively new entrant into the industry, but one you should consider for your investment. The company went public in January, and this was good for them financially. Their stock has risen 43% from its initial public offering (IPO) price. There has been a steady increase in earnings as well as decent expansion plans.
The US market has recently approved the company thereby creating a new base of prospective customers. PlayAGS’ growth is on a consistent and steady trend, and it’s reasonably valued. There is a great potential for its profit to surpass that of its predecessors in the market. So, PlayAGS seems to be cut out for the investors who would prefer to put their money in a budding gambling company that is on the rise.
The Stars Group (TSG)
Price (Nasdaq): $18.82
If you love virtual table games, you will agree that The Stars Group is a household name in online poker. It’s highly rated for two of its major brands: Full Tilt and PokerStars. The profit generated by the company is very healthy, and it’s recognized among the high rising sports betting and online wagering companies.
Within 2018, its revenue increased 54%, amounting to $2 billion. As sports betting legal status takes center stage in the US, there could be a projected increase in revenue.
Most of The Stars Group’s customers are loyal and passionate about poker and they also appear comfy with the tech behind the companies’ two major brands. This is one reason why they remain a dominant force to reckon with in the industry.
When it comes to sports betting, the company has already made further expansion into the UK by acquiring a local gaming business to try themselves as one of the largest online gaming providers. If you are looking for a credible gambling company that can bring you a decent profit, then you should consider The Stars Group.
William Hill (WIMHY)
Price (Nasdaq): $8.4
William Hill boasts of over 2,000 sports betting shops to its name. It has a large fan base in the United Kingdom and it’s also popular among sports betting lovers in the world at large. Presently, it has a 33% market share in the UK sports betting industry. William Hill has also expanded its business operations into the US, covering 4 states. Within a few years of doing business in the US, it has become very popular with sports betting fans. One of the company’s selling points is its mobile app that now enjoys over 2.5 million downloads.
Its strong reputation in the sports betting industry, and growth potential make William Hill an ideal company to invest in.
The list of gambling stocks for investment is exhaustive – you may as well invest in the leading casino software providers like Microgaming, online gaming operators like 888, or fresh startups. But, we have carefully chosen these five, because we find them impressive. Still, when it comes to putting your hard-earned money in any stock, always stick to the following advice – Never invest more than you can afford to lose.