Are Online Gambling Providers Worth Investing In?

The gambling industry is massive across the world and particularly in the UK. The UK Gambling Industry is worth around £5 billion and grows in size each year. Of this figure, around 37% of the market share can be attributed to online casinos, bingo sites and online sports betting.

It’s easy to see why investors may look at online gambling as a potential big earner. Particularly considering how online gambling is becoming more popular in recent years. Is it really worth the investment though? Here we’ll take a look at different investment options and how much you can expect to make from your investment in online gambling providers.

Gambling has struggled for investment in the past partly due to its lack of visibility and the belief that investing in the industry is restricted by lots of red tape. Unlike sports betting shops, online gambling isn’t as visible on our high streets so may not always be an obvious choice for a lot of investors. Despite its obvious potential as a profitable and growing industry, the low profile of many online casinos and gambling providers may mean investors are put off.

Casinos also need to make sure that they comply with strict regulations in order to operate legally and this may put some investors off. The regulation-appeasing may make things like advertising more challenging, but this can also be seen as a positive. The regulations give a lot of clarity on issues such as taxation and the company’s obligation towards technology and security.

Because of a lack of investment in online gambling, this sector presents a unique opportunity. There isn’t a vast amount of money in the industry, despite the impression that online gambling sites are all loaded and extremely wealthy. The online gambling industry has plenty of space for investment.

Investment Opportunities

Let’s take a look at some of the best opportunities for investment in the online gambling industry.

Addison Global – This Gibraltar based startup is making waves in the industry and expect to be listed on the London Stock exchange soon. As the creator of newly built popular casino site MoPlay, Addison Global has had a lot of impact on the world of online gambling in a short time. To find out more about MoPlay and its impact on the industry, read a review here.

Addison Global has a highly experienced team of senior executives and formed several partnerships with high profile football clubs including Manchester United and Watford.

Playtech PlcPlaytech is one of the industry’s top game developers. Founded in 1999, the company is based out of the Isle of Man and produce lots of different software for online casinos. They also make software for online bingo sites, poker rooms, sports betting, mobile gaming and more.

The company made £1.05 billion in revenue for 2018. That was £110 million in net profit. Shares in Playtech are currently available for 390 GBX at the time of writing.

Flutter Entertainment Plc – As one of the biggest online bookmakers, Flutter Entertainment was formed after the merger of PaddyPower and Betfair. Despite already have revenue of £1.87 billion the company doesn’t show any signs of slowing in growth. The company has a share price of 9,192 GBX and includes brands such as SportsBet, FanDuel and TVG.