Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
The iGaming industry is relatively new in Canada—the government legalized single-event betting in 2021. However, online betting is a multi-billion industry. And that means it presents great investment opportunities.
If you would like to put your money to work in 2023, consider investing in some of the largest iGaming operators in Canada. These brands have been around for years.
They know a thing or two about running a successful betting site. Some of them have also been growing consistently, making them your ideal investment options.
#1: Flutter Entertainment PLC
A decade ago, Flutter Entertainment’s shares cost less than $1000 apiece. Today, the company’s stock is worth over $15,000. That’s a 15,000% ROI. The explanation behind Flutter’s meteoric rise is that it keeps acquiring highly valued brands.
It owns Betfair and Paddy Power, two of the most respected sportsbooks in Europe. It also owns PokerStars—the world’s largest poker website. In North America, Flutter Entertainment runs FanDuel, a major player in the North American betting space.
Although the company’s stock is expensive, it’s a safe bet for anyone who wants to invest long-term. For starters, many of the betting sites Flutter owns are now dominating Canada and the US.
Secondly, Flutter runs the best casinos in the world. And what’s a better place to invest than in the best gambling businesses? Thirdly, this stock has been growing consistently for over a decade. Precisely, it has generated a 15x for early investors.
#2: MGM Resorts International
MGM anticipates tremendous growth in the next decade according to the Motley Fool. Many of the company’s resorts in Las Vegas recorded double-digit profits in 2022. The Mirage and the Cosmopolitan casinos were the only exceptions.
Beyond brick-and-mortar resorts, MGM Resorts has been generating hundreds of millions from its iGaming ventures. It owns 50% of BetMGM and the majority shareholdings of LeoVegas online casino.
There were rumours MGM Resorts would seek 100% ownership of BetMGM last year. But after acquiring LeoVegas, CEO Jonathan Halkyard said his company had shelved the idea.
In case you’re wondering, LeoVegas is a Malta-based, award-winning online casino launched in 2011. It offers 300+ slots and live casino games from some of the best software providers online. A review of LeoVegas casino can be read here. Check it out.
Outside of North America, MGM Resorts owns a casino resort in Macau. The casino had been closed due to pandemic concerns. It has since been reopened. That means MGM will likely expand its profits in 2023, leading to a rise in its stock price.
#3: Entain PLC
Formerly known as GVC Holdings, Entain PLC rebranded in 2020 after increasing its casino acquisitions to include Bwin, Coral, Party Casino, Party Poker, Ladbrokes, Foxy Bingo and 50% of BetMGM.
Should you take a risk on Entain? Besides owning a series of popular betting sites, Entain is committed to operating in regulated markets. If you’re a person who wants to invest in betting sites that prioritize the safety of gamblers, then Entain is a good choice.
Many of Entain’s websites are located offshore. However, its partnership with MGM Resorts shows it has plans to capture the US betting market. It currently dominates an 18% market share in the US and it could expand to Canada as more provinces commercialize mobile betting.
Additionally, Entain has a share in the Australian sports betting market. Add its plan to invest in eSports betting in 2023 and there’s potential this stock will continue to grow in the next few years.
#4: 888 Holdings PLC
888 Holdings PLC has been around for ages. It was one of the world’s first online casinos—it launched in 1997. Over the years, the company has experienced ups and downs. However, its stock has been growing steadily.
The only time 888 Holdings experienced volatility was in 2021. Investors were expecting the company to buy William Hill. But the deal took longer to close– 888 finally purchased William’s non-US operations for £2 billion ($2.45bn) last year.
With the addition of William Hill to its portfolio, 888 Holdings is now one of the biggest iGaming companies in Europe. Should you purchase its stock? 888 Holdings isn’t just an established brand.
It’s also a profitable asset. It regularly makes over $100m in profits per year. Now that it also has a presence in the US—both 888 Sport and William Hill—you should expect the company to increase its profits.
DraftKings
DraftKings’ shares jumped at the start of this year after the company announced it had generated $855m in profits last year. This was also an 81% growth rate compared to 2021.
Additionally, the American betting website is expecting a year-over-year profit increase of up to 36% in 2023. Considering the company had such an amazing run in 2022, investors are convinced DraftKings is a good buy in 2023.
That being said, DraftKings hasn’t been the most consistent casino stock of late. It was worth $70 in 2021 before crashing to a low of $11 in 2022. That’s why it cancelled plans to buy Entain PLC in favour of expanding its market share in the US and Canada.
DraftKings commands 20% of the US sports betting market, ranking second to FanDuel, which dominates 46% of the market. After Canada opened doors for legal sports betting in 2021, both DraftKings and FanDuel have been racing to control the market.
Unfortunately, only Ontario province has legalized the two sportsbooks so far. Most provinces prefer to offer sports betting through a provincially-operated betting website. But this may change in the future, at which point DraftKings will seek to explore these new regions.
Your Turn
With so many casino stocks, choosing the right company to invest in is a difficult decision. On the one hand, buying shares from established brands provides assurance you could make steady profits.
On the other end, investing in a betting startup offers a higher upside in the long term. It’s up to you to decide how to invest your money. Prioritize some of the stocks outlined above if you plan to invest long term.
