This market can grow 10% a year until 2027… These are the companies with the most potential

This market can grow 10% a year until 2027… These are the companies with the most potential

The growing popularity of gambling in different parts of the world is driving the global online gaming market significantly. According to the American Gaming Association (AGA), in 2018 around 2,800 sites were active online, offering games and activities such as poker, lottery and bingo. The growing adoption of smartphones together with the greater penetration of better internet connectivity in several countries is allowing faster access to this type of platform. With companies offering the freemium model to their customers, the number of people participating in online gambling is increasing at a considerable rate, which in turn is driving the growth of the global online gambling market, ensures the latest report “Global Online Glambing Markets – Forecasts from 2022 to 2027”.

Some forecasts that join the recent ones published by Zion Market Research in which it warned that one of the catalysts for prominent for the industry is the Asia Pacific region, which is expected to increase the use of internet services and be more flexible with the rules that regulate online gambling and betting.

Evolution of the main companies dedicated to online gaming, betting and casinos in the year.

Evolution of the main companies dedicated to online gaming, betting and casinos in the year.

A sector whose capitalization has not stopped growing in the last decade and whose presentation of income and sales during the second half has beaten forecasts. In the industry there are giants such as the American Caesars Entertainment, MGM Resorts or Las Vegas Sands, whose main business is the resorts that people go to bet on but whose online business is also growing, while in Europe, the United Kingdom is, by far the largest market for online betting and gaming operators. Although there are other regulated markets that are also important, such as Sweden, Spain, Italy and Australia. While many countries ban the online gaming industry, which can be an obstacle to the growth of this market globally. Countries where online gambling is illegal include Singapore, the United Arab Emirates (UAE), North Korea, India, and Qatar.

Top online gaming companies and casinos in Europe

Despite the good forecasts for the sector, the truth is that the behavior of the stock market has not been unrelated to the sharp falls experienced by indices worldwide. This group of companies in Europe recorded falls ranging from -39%, as is the case of 888 Holdings, to -10% that Flutter Entertainment shares yield.

As for its future run, FTSE -100 listed sports betting company Entain offers a potential of over 70% over current trading prices if you go looking for the £1964 it is priced at. objective. A list that also highlights the potential of values ​​​​such as Drafking or Evolution AB of more than 50%.

Entain, which operates as a sports betting and gaming company, offers online betting, casino, poker and bingo services via mobile and web under the bwin brand; online and multi-channel betting under the Ladbrokes brand; street and online betting under the Coral brand; sports betting, casino, gaming and poker under the Sportingbet brand; online bingo, sports betting, casino and poker access under the Betboo brand; and sports betting, poker and casino games under the Crystalbet brand, as well as Gamebookers, a comprehensive sports betting service. A stock with a capitalization of £6.8bn has a price/earnings ratio of 3,215.28 and has recently announced a dividend of £8.50.

In the US, Everi Holdings stands out, provider of entertainment and technology solutions for the casino and digital gaming industries. Last August, the company published a profit of 0.33 dollars per share, in line with market estimates, with revenues that increased by 14%, to 197 million dollars, and reiterated its forecast of reaching between 125 and 132 million dollars in income until the end of the year. Hedge fund Insider Monkey is one of the stock’s largest shareholders.

Despite falls of more than 24% registered by the company since the beginning of the year, the value has a potential rise of more than 55% on current prices, to 28 dollars, while of the nine analysts who cover the value everyone recommends its “purchase” in the long term. A value that has a capitalization of 898 million dollars.

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