The gambling industry has boomed over the past few years, experiencing huge increases in valuation and revenues. This is due to a variety of factors, such as the growth in online gambling, the relaxation of legislation, and fresh competition entering the industry every year. The huge levels of growth over the past years have made stocks in gambling companies extremely lucrative for investors. This article will consider some of the most promising gambling stocks for Irish investors over the coming years. When analyzing the best long-term gambling stocks, a variety of factors will be considered, such as previous company growth, current valuation, and long-term expected stability within the market.
One of the most established names in the betting industry is Flutter Entertainment. The sports betting firms were made in 2015 when Paddy Power and Betfair agreed to undertake a merger between the two companies. The company currently operates in a wide number of countries, including but not limited to the United Kingdom, Ireland, Australia, and the United States. The company is well established within the United Kingdom and Ireland, with subsidiaries Paddy Power and Poker Stars being market leaders within the countries and featuring among the best sports betting sites in Ireland, edging out the likes of 888 group and Coral and Ladbrokes (GVC).
Moreover, within the United States, the company has been going from strength to strength. With the legalization of sports betting in 2018, the company has been able to expand significantly within the United States. Flutter Entertainment is currently based in 14 states and made up roughly 40% of the sports betting market as of 2021. Overall, Flutter Entertainment is a great investment as the company is well-established and experienced significant growth over the past few years.
DraftKings is a newer entry into the online gambling market, with the company establishing a marketplace only in August 2021. Since its establishment, the company has experienced huge levels of sustained growth. DraftKings is unique in that it specializes in both sports betting and fantasy sports contests. The company operates in 14 countries as of today, including the huge consumer markets of the United Kingdom and the United States.
Within the United States, the company currently makes up about 25% of the online gambling market, making it the second most dominant company behind Flutter Entertainment. As the legalization of sports betting continues across the United States, and DraftKings is so successful in entering into new markets, investing in DraftKings seems to be a no-brainer. Overall, with the company being so established and experiencing sustained growth, DraftKings is a fantastic option for a long-term investment.
Within the casino world, MGM Resorts is one of the most established names in the industry. The global entertainment and gaming brand owns a huge variety of hotels and gaming locations across the globe. MGM currently owns 31 casino and hotel brands, as well as online gambling subsidiaries Aspire Global, Pariplay, and BtoBet. The company was established in 1924 and is currently based in Las Vegas. In Q2 of 2023, MGM Resorts’ net revenue increased by more than a third, indicating extremely strong growth. This is likely due to a rebound in the Las Vegas leisure travel market as tourism continues to increase post-COVID. MGM China has also experienced huge levels of growth as the country’s lockdown restrictions massively relax. Overall, MGM Entertainment is a safe bet for potential investors, making this the ideal gambling stock to hold for the longer term.
PENN Entertainment, formerly known as PENN National Gaming, is a conglomerate that specializes in casinos, sports betting, and the integrated entertainment industry. The company was established in 1968 following the legalization of thoroughbred horse racing in the United States. Experiencing modest growth at first, the company slowly began to purchase horse racing tracks across the United States in the 1990s. By 2003, PENN Entertainment was able to diversify to casinos by purchasing the Hollywood Casino Corporation. The acquisition saw the company’s revenue double within the year, proving that this was a worthwhile investment.
Since the early 2000s, the company has only gone from strength to strength. The firm currently operates over 40 different estates in 17 jurisdictions in the US. The company saw especially strong growth in 2018 when the Federal Court made sports betting legal at each state’s discretion. Since the passing of this legislation, PENN Entertainment has managed to become hugely successful in the rapidly growing sports betting industry. With the recent acquisition of Barstool Sports, the company experienced a tenfold net income increase in the first quarter of 2023. One slight disadvantage of PENN Entertainment is that since the company is purely based in the US, if any shock enters the US gambling market this could significantly impact the company’s stock.