I’m Thomas Wolf and on a daily basis I’m the Head of Content at Online.Casino Australia, an online publication with a close eye on the iGaming market. The past years we have seen a lot of IPOs from gambling related companies and I’d love to give you some insight.
Last March may have been a once-in-a-lifetime chance to purchase casino stocks, in retrospect. What is the explanation for this? As a result of the novel coronavirus and the subsequent lockdowns, gaming companies large and small saw their stock prices plummet to near-distressed levels.
However, as the year progressed, this industry proved to be resilient, with casinos opening much earlier than predicted (albeit with social distancing). Given the megatrends of iGaming (online casino) and sports betting, investors had plenty of reason to bid up stocks in the market.
Is this to say that it’s too late to make money from casino stocks? No, not at all. But, after their spectacular recovery in the second half of last year, further gains might not be as important.
So, which casino stocks are worth considering? Consider taking a chance on one of these five big names:
-Bally’s Corporation (Bally’s) (NYSE:BALY)
-Caesars Entertainment (Caesars) (NASDAQ:CZR)
-Online gaming at Golden Nugget (NASDAQ:GNOG)
-MGM Resorts International (NYSE:MGM)
-Penn National Gaming is a gaming company based in Pennsylvania (NASDAQ:PENN)
With the travel economy still waiting for mass vaccination to return to “normal,” there’s still time for this still-struggling industry to recover. Investors with a healthy risk appetite can still see value in gaming stocks, given the growth opportunities in online gambling.
1. Bally’s Entertainment Corporation (BALY)
It’s fair to claim that BALY stock had a fantastic year in 2020. This operator of second-tier casino properties, formerly known as Twin River Worldwide, saw its stock plummet along with the rest of the industry during the March 2020 “coronavirus collapse.”
However, as Seeking Alpha commentators noted in May, the company took advantage of the situation, purchasing many properties at bargain-basement rates. The company acquired Bally’s casino brand as part of its deal-making.
However, this was not the catalyst for Bally’s stock to soar. That was the company’s fast foray into online sports betting. Overnight, the business was transformed into yet another medium for gaining exposure to the online sportsbook craze.
2. Caesars Entertainment Corporation (CZR)
When Covid-19 arrived in the United States, Caesars had its hands full. At the time, the company (then known as Eldorado Resorts) was nearing the completion of its highly publicized acquisition of Caesars Entertainment.
However, because of the massive popularity of sports betting, investors were willing to give the newly merged business some leeway. And re-invested in CZR stock. Both the online gaming and casino revival catalysts seem to be well priced into shares at today’s rates.
That isn’t to say its hot streak can’t continue. What do you mean by that? As the online gaming stock bubble continues to burst, investors may continue to bid up operators like this one as more states legalize both iGaming and mobile sports wagering. The recent talk in New York about legalizing online gambling has got a lot of attention. However, other large states such as California, Florida, and Texas will make significant announcements in 2021.
3. Online gaming at Golden Nugget (GNOG)
Golden Nugget Online Gaming, formerly known as Landcadia Holdings II, has been extensively covered. Some of my InvestorPlace colleagues, such as Mark Hake, are bullish on the stock, believing it is undervalued compared to online gaming behemoths like DraftKings (NASDAQ:DKNG).
4. MGM Resorts International (MGM)
MGM stock, like Caesars, provides exposure to both the brick-and-mortar casino recovery and the online gaming megatrend. Rather than sit on its hands, this gaming behemoth has made significant strides to expand its online reach through the BetMGM website.
5. Penn National Gaming is number five on the list (PENN)
Among the stocks in this hot market, Penn National had done the most “winning.” What is the explanation for this? Specifically, because of its well-timed purchase of Barstool Sports just before the pandemic.
Not only did this agreement provide them with a great name and a potential customer base for their fledgling sportsbook operations, but it also provided them with a great brand and a potential customer base. Dave Portnoy, the founder of Barstool, was also brought in as part of the deal.
The above casinos are the best that one can depend on. They are easy to move within all gambling areas. You can try any of them, and you will see the better side of them all.
