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Meta Description: January is the perfect time to take a fresh look at stock options. Gambling stocks have our attention today, as research predicts market growth in this sector.
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A Forecast of UK Gambling Site Stocks for 2020.
January is the perfect time to take a fresh look at stock options, and gambling stocks have caught our attention today. While gambling may be making headlines, as the regulator announces new reforms, you could be fooled into avoiding gambling stocks. Just a little research show that the opposite is true!
Recent data shows that the UK gambling market is set to grow confidently. Technology developments such as AI and VR are just some of the factors driving this growth. Figures from the Gambling Market in the UK 2018-2022 report predict growth of 5.16% over the four-year period analyzed. The report consists of research put together by a wealth of industry experts.
Figures from UK regulator, the Gambling Commission, clearly show that the online sector is streaks ahead of other gambling markets, in terms of revenue. From April 2018 to March 2019, online gambling generated £5.36 billion of revenue. Second to this, betting generated noticeably lower revenue of £3.25 billion.
With this evidence in mind, interested investors can safely put reservations about gambling stocks to one side. The next most vital information is to work out which gambling stocks are worth a punt. The UK is home to a large number of online operators, some of which are better known for the brands they own. When looking for stock options, a good tactic is to read through selections of quality site reviews. For instance, roulettesites.org, provides a useful comparison of the best online gambling sites in the UK.
One such company is GVC Holdings. The sports betting and gambling firm is listed on the London Stock Exchange and the FTSE 250 Index. GVC-owned sports betting brands include the Ladbrokes Coral Group, bwin and Sportingbet. In addition to these, GVC also operates a number of gaming sites. Many of these are household names, such as partypoker and Foxy Bingo. Since September, stocks in GVC Holdings have experienced steady growth.
Another mammoth of the UK’s gambling sector is Flutter Entertainment. This bookmaker was formed through a merger between two brands that were already household names: Paddy Power and Betfair. The business rebranded from Paddy Power Betfair to Flutter Entertainment last March. Last October, Flutter Entertainment acquired The Stars Group, a Canadian gaming company. The $6.95 billion deal has cemented Flutter Entertainment’s place as one the largest online gambling firms in the world. The company is listed on the London Stock Exchange, and is the only gambling firm to be listed on the FTSE 100 Index. It has displayed similarly positive growth to rival firm GVC Holdings.
One of the UK’s best known and longest running bookies is William Hill. A mainstay of the British high street, William Hill has been around since 1934. The British firm is listed on the London Stock Exchange and the FTSE 250 Index. While the company has a high profile in the UK, it has also made steps into the fledgling US sports betting market, following the overturning of PASPA. William Hill stocks have shown more volatility than some other UK gambling firms, in light of some controversies. In 2018, William Hill was fined £6.2 million by the Gambling Commission, over failures concerning problem gambling and money laundering.
888 Holdings owns a number of gambling brands and sites. Flagship brands include 888casino, 888poker and 888sport. It also operates a selection of bingo sites that it has bought, such as Wink Bingo, Posh Bingo and Big Brother Bingo. It’s own original bingo brands are 888ladies and 888bingo. The company is based in Gibralter and is listed on the London Stock Exchange and FTSE 250 Index.
Unusually, the Rank Group was originally a company focused on the cinema and motion picture industry. That changed in 2006 when it sold off Deluxe Film for £430 million. After that, Rank’s remaining operations were mostly gambling related. The Rank Group owns the UK’s largest casino operator, Grosvenor Casinos. It also operates the brands Mecca Bingo, Enracha, Rank España and Rank Interactive. Like the other companies we’ve selected, the Rank Group is listed on the London Stock Exchange and is a constituent of the FTSE 250. In comparison to other gambling stocks, Rank’s shares have risen noticeably over the last six months.
On a different tangent to the other companies listed, Playtech’s business is in developing gambling software. Founded in 1999, the company has since grown to become one of the most widely used gambling software developers in the world. Playtech is on the London Stock Exchange and is the only company of it’s kind to be listed on the FTSE 2050 Index. It all goes to show that the UK’s gambling industry is ticking over steadily and stocks are well worth consideration.
