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Are Online Gambling Platforms a Good Investment?




While they say hindsight is always 20/20, that isn’t true when it comes to the market in the year 2020. Even once it is over we don’t really know what happened and why. Even for online gambling, which experienced a huge rise, we need to dig deeper to see if it is still a viable investment.

First of all, we need to realize that the increase in the price of stock, and the market itself, when it comes to online gambling is not new. As of Q1 2021, this market is experiencing a 27th consecutive quarter rising. The last red quarter for the industry was Q1 2013.

There are three major reasons for this rise:


1    The amount of viable players globally is on the rise

2    Improved technology increase customer satisfaction

3    Better regulation gives reliability to all stakeholders

Because of these changes, we can expect the market as a whole to grow. But, it will be important to know how to pick out the right company to invest in, as well as the location where you should focus on.

Some regions, such as Australia or the UK are much more focused on traditional casino games played online, as well as particular games such as pokies. Other markets, such as those in Africa, are more inclined towards sports betting and slot games.


Measure Twice, Cut Once

For newcomer investors, it might be too late to be considered an early adopter that would profit selling their stocks at the first sign of trouble. Rather, you will need to investigate and search for good company health when investing in online gambling.

Primarily, there is the question of licensing. Although it is possible for legitimate companies to host an online gambling platform without first obtaining a license, this practice will make the website illegal in most of the world.

All members of the WTO, which includes 163 countries, require licenses for gambling to be offered to their citizens. This usually includes either the license offered by the Malta Gaming Commission or the one provided by the Curacao authorities.

Additionally, you will need to inspect the type and amount of games offered by the website. If the provider is also the owner of the IP of the games, that can be a sure sign of a good investment.

Finally, you want to ensure that there is growth potential and that the company you want to invest in has a plan for the future. Similar to investing in the dot-com companies in the nineties, there are some who are a quick cash grab and others that expand their services constantly.


A Steady Increase

The ROI expected with online gambling can vary greatly depending on the nature of the company of your choice, the market you are focusing on, as well as the nature of the investment itself.

Placing your money in a startup may yield the highest reward if successful, but also comes with the greatest risk. Many online gambling startups fail despite the growing market because they are unable to position themselves successfully.

Investing in an existing company can be a safe choice, but it won’t yield a huge profit just yet. Most operators are focused on growth and you won’t be seeing a significant dividend until the market is stabilized.

Adding to the unorthodox nature of the industry, investing in online gambling might be a good long-term plan to stabilize your portfolio and to have a slow but steady rise. You will be better off than investing in blue-chip companies, but with a bit more time needed in an investigation.


Booming Markets

For the longest time, the only viable places for good investments when it comes to anything referring to finances were in East Asia, the US, or Western Europe. But, that is about to change.

With the growing population and wealth in Africa, SE Asia, and the impact of those markets on Australia, they will all be very fruitful places to position investments.

Currently, when it comes to online gambling, Australia is one of the safest choices. In many ways, it combines the benefits of Western society and legal security with the strives made by SE Asia and developing countries.

And, as more people are looking at their devices to play online pokies, the more profits are found with the operators.


A More Honest Type of Gambling

Because of the licenses and supervision, as well as the rise in technology, online gambling is looking more like regular gaming than any type of casino investment in the past.

In the new industry, honesty is the best policy. Good software provides security and there is no need to press on players for funds. Rather, new operators focus on marketing their games as entertainment.

As an investor, this means that you are entering a much cleaner market with fewer issues, which is always a good thing.

Business Daily Media