The future of Online Gambling

The future of online gambling has always been in question. Is it ethical, is it not, does it create addictions. Well, the answers to these questions differ all the time.

All we can say that gambling companies have seen a steady growth lately, and it seems that the growth will keep on flourishing from strength to strength with shares for GAN Limited, DraftKings. Joining the ranks of growing business we also have The Star Group, all of this thanks to new online casinos for 2020.

What caused the rise in stocks so drastically? Well if we had to be fully realistic, we’d say that it is all down to the pandemic and people being all indoors. This is one of the main reasons that the US has been asked many times to regulise online gambling and ensure that the economy keeps growing steadily.

Let’s talk about the ins and outs of online gambling

Whilst some states allow online gambling to happen in a legal fashion in the US, other states do not. Some states only allow you to enjoy betting on sports via legal sports betting sites, whilst others allow you to enjoy the thrills of a casino. Other casinos in the US that are legal are the ones that need you to be there in person, hence the land based casinos. If online casinos would be deemed legal, we are pretty sure that the likes of DraftKings and also Poker Stars would top the stock market even further and enjoy some decent earnings. We can online hope that once this pandemic is over, the US fully recognises the fact that online gambling will eventually be a major factor to help the economy keep afloat.

If we had to look at where gambling stands in the US, we can comfortably say that online land based casinos have the most advantageous position. Let’s take for example the MSG Resorts, a space where gamblers can meet and enjoy a couple of days at a resort nicely. On the other hand, new online casinos could also flourish, since some land based casinos and resorts have closed off since the start of the pandemic, and others are open with many restrictions.

One of the powerhouses when it comes to gambling is GAN Limited. The company offers many services to assist casinos such as MGM Resorts to set up and open casinos. The strategy is quite simple, bring a pillar in software development with a gambling brand together and this way, a solid brand is developed.
IGT (NYSE:IGT) and Scientific Games (NASDAQ:SGMS) have also built services casinos can use to build online gambling platforms.

What you’ll notice is that traditional casino companies are primarily leaning on partners to bring online gambling to the market. In that sense, it’s the software companies that have the most opportunity and are highly valued by the market. But these aren’t your typical technology stocks because this is a highly regulated and very competitive market without a clear winner-take-all outcome expected in the future.

Game providers such as IGT and also Scientific Games have developed frameworks and processes to help new online casinos launch, in a very successful way. This is the most organised and successful way that online casinos develop and manage to survive within the online market. If we had to look at the stock market, these companies do not have the traditional presence at the technology stock market, as the market that they strive and flourish in is not your traditional Wall Street stock market. It is a highly regulated market, with no clear front runners.

The new online casino pool and competition

If we had to look at a land based casino profit, it is definitely huge. However in a world pandemic, the one that we are currently facing, the best type of money making, profit structure would definitely fall in the hands of a new online casino. People are staying indoors, and even if they could, people would not go to crowded places such as a resort.

If we had to take a closer look at the amount of casinos that operate across the US, they are not many, however the numbers are somehow growing. In the Orange state of New Jersey, there are 22 new online casinos operating. In Pennsylvania, which is home to 12.8 million American citizens, there are just 10 online gambling sites. In the state of Indiana, the home of 6.8 Million people and also the Indiana Pacers, sports is quite prominent, however you will only find 7 sportsbook sites / apps where you can bet on your favourite bookie online. Could you imagine and picture the competition between such sites?

Due to the fierce competition with such small numbers in betting sites, all sites would need to step up their game to attract customers. The marketing campaigns that they utilise to attract customers are all about offering deposit matches, free bonus games, free rounds and using media platforms to attract customers and new players. If more online brands emerge, new online casinos would need to step up their game to keep up with the market and competition.

So, how do I play at an online gambling site?

In the long run, and in the climate that we find ourselves in, online casinos are the way forward. And some of the biggest gambling resorts such as the MGM have already placed bids and money to start an online business offering and set up. To enter the market in a very aggressive fashion, they have launched the BetMGM application, and continue to add markets to be able to cater for demand and ensure business growth. If we had to bet any money on what the future looks for the app, we’d say that it will be a solid winner.

A reputable company such as Draftkings finds itself in a more advantageous position than many. It currently offers its own products, as opposed to being an online platform that is solely based on other brands. The road to growth for DraftKings is massive, and it can only grow further in the future with a solid sports betting platform that they operate.
Investors hope for growth for new casino sites is quite bleak, as only a small number of 16 states offer legal online gambling. Investors wish to have a better market when it comes to having their sites promoted, but this is only hope for the future of American online gambling. The question is: when will the government allow new online operators to launch in a legal fashion, just like they do in Malta and the United Kingdom?

Where should you place $1,000 worth of your money at the moment?
If you think that the MGM is where you should invest your money right now, top investment gurus tell you otherwise. David and Tom Gardiner are all about new online brands and their future. The way forward is definitely hoping that the legislation turns and that new sites and betting sites will ignite the future and also the economy.

About the future of online gambling you can read also HERE.