By 2020, the worldwide online gambling and gaming industry is forecasted to grow to $59.79 billion. This astounding number although might seem inflated, is very realistic considering the popularity of online gaming across the globe. With the popularization of the internet and the access to the technology, people find it easier to entertain themselves with gambling and gaming online. Some of the listed online gaming companies have seen large growths in their stock prices as well. Market capitalizations of these companies have reached several billion US dollars. Here we offer predictions for some of the listed online gambling companies for 2019.
Future prospects of the iGaming companies
In 2019, the prospects for the online gaming companies are even better. US Supreme Court recently lifted a federal ban that prohibited states from licensing online gambling companies. Although the decision does not automatically make gambling legal across the country, some of the states have already started due processes to legalize the activities. The US is one of the largest markets that offers a great potential for the internationally licensed companies to grow. If companies like William Hill and Kindred Group announce their plans to enter the US market, the future growth prospects should propel their stock prices even higher.
Still, it is worth mentioning some trends that clearly demonstrate the momentum behind online bingo. Top Rated Bingo Sites has found that the percentage of bingo players aged between 18 and 34 has grown from 17% to 32% from 2015 to 2017 (see the players survey provided by the website here). This is an astonishing growth considering the timeframe. In two years, the number of Millennials playing online bingo has almost doubled. The website also found that the majority of people who play bingo online now use a mobile phone as their major device to access the platforms. In fact, over 53% of respondents said they used mobile phones to play bingo online. This demonstrates that there is a great potential behind the game and as it is adapting to the new technologies, it could find a completely new market. Top Rated Bingo Sites has done a detailed analysis of the future prospects of bingo that can be viewed here.
In conclusion, 2019 is definitely a year that will see great gains in iGaming companies’ prices. This will likely be motivated by several factors. First of all, the general uptrend of the past year is likely to continue as online gaming is becoming increasingly popular. In addition, the opening up of the US market and the popularization of online bingo could convince investors about the potential of the online gaming companies.
There is another important source of growth for online gaming industry that might seem counterintuitive. Bingo, for those who are not into online gaming, seems like the game from the past. In fact, when imagining people playing Bingo, most will think of the elderly. This trend might be seeing a reversal as the youth are getting more and more involved in online bingo. All the companies mentioned above include online bingo in their list of products so any increase in the popularity of the game could translate into an increase in the share prices. Of course, these prices are mostly based on the investor confidence and it is not clear if investors see bingo as something that could have a future potential yet.
Where should you invest?
William Hill, a bookmaker based in London, operates various online gaming and gambling websites as well as online poker and online bingo. Company’s stock is a constituent of the prestigious FTSE 250, which is an index that includes some of the largest companies that are listed on the London Stock Exchange. Starting in November, when the share price of the company fluctuated around 250 GBP, there was a strong increase until it reached the pick of 335 GBP in January. The prices have remained at approximately that level, with a dip in May. After the UK imposed a betting limit on the betting terminals, some of the gambling providers including William Hill have complained about their revenue prospects, which was the likely reason why the shares shed value. The prices recovered soon afterward.
Kindred Group is another successful listed online gaming provider. It combines several different brands like Unibet, iGame, and 32Red. The company offers online poker and casino as well as online bingo. Similarly to William Hill, 2017-2018 was a great year for the company’s stocks. The prices rose from 83 Swedish Krona in August to over 130 in March, before stabilizing at around 115.
Mr Green is also a popular online gambling company listed on the NASDAQ Stockholm exchange. Its shares at the time of writing this article are trading at 43 Swedish Krona. Unlike the other two companies mentioned above, Mr Green has not seen exquisite growth in its share prices in the last few years. Nevertheless, it remains a safe investment option as the price has remained stable over the years.
There are other online gambling companies as well listed on various stock exchanges. Although they have all had different experiences in the past year, the trend of growth in the industry is obvious. These stocks are becoming increasingly attractive for the investors as the online gaming industry eyes several opportunities in the coming years. In the next section, we will explain what these opportunities could be and how they could affect the share prices of the iGaming companies.