Unless you’re one of those lucky players, the non GamStop UK casinos industry can mean money out of your wallet. However, if you invest in iGaming shares, you can sit with these companies and get your share of the income. Companies within iGaming are often very large and operate in several countries and markets. At the same time, the rise of the metaverse has led to both crypto and NFT becoming potential iGaming investments.
Non GamStop Casinos Stocks
In the iGaming shares category, we find two different subcategories. In one we find those who operate non GamStop casinos and betting sites, while in the other we find game providers who develop the games you find at the casinos.
We could also include another subcategory in the form of payment providers such as Visa, Mastercard, Paysafe Group and others. To take it all the way, one could also include Amazon’s cloud services, Hewlett Packard Enterprise’s servers and CrowdStrike’s IT security.
In this article, however, we have chosen to focus on the players who are part of the very core of iGaming. If you are looking for good investment opportunities among iGaming stocks, we believe there should be many opportunities right here.
Not all of the players in this industry are listed on the stock exchange, while others are listed on stock exchanges that are not easily accessible to an ordinary amateur investor. This is the reason why not all of the big and best-known betting sites, online casinos and game developers offer investment opportunities.
The metaverse’s progress is going at breakneck speed, and it can provide great opportunities for iGaming companies both now and in the future. Both non GamStop casinos and betting sites can make use of the incredible opportunities that exist to give the players an incredible gaming experience that has not been seen before.
Cyclical Stocks
The iGaming industry has cyclical shares, which means that the company’s revenues and profits are significantly affected by the business economy. In times when business is doing well and unemployment is low, cyclical shares give good returns. In periods of decline, on the other hand, cyclical shares tend to produce poorer returns.
The main reason why iGaming stocks are cyclical is that the operators in this industry offer services and goods that are not strictly necessary. So if people begin to struggle with the economy and are less able to afford it in everyday life, people rather spend money on what is necessary. Spending on things that are not as necessary, such as casino gaming and betting, thus decreases, which means that the iGaming companies earn less. Ultimately, this leads to a weaker development in the iGaming players’ share prices.
In boom periods when business is thriving, most people generally get a better and more spacious economy. This means that we can treat ourselves to services and goods that are not as relevant in times of recession, such as non GamStop casinos and bookmakers. Cyclical shares thus lead to the companies in the Gaming industry doing better, and the share price rises.
We will now go through what we believe are the most relevant investment objects for British people considering companies in the iGaming industry.
Kindred Group
Kindred Group is a company based in Malta, and since its inception in 1997, the company has launched several brands within casino, odds, poker and bingo. This includes some of the most famous gambling sites, such as Unibet, MariaCasino, Storspiller and Bingo. The company is listed on stock exchanges in Stockholm, New York, London and Frankfurt.
In addition to the head office in Malta, Kindred Group also has offices in Gibraltar, as well as in London, the USA, Australia and some smaller offices elsewhere in Europe. Kindred Group’s most important market is Europe, but in 2018 the company also began investing in the US iGaming market, which could provide further growth in the coming years.
Kambi Group
Kambi Group was previously part of Kindred Group, but in 2014 was separated from the rest of the group as an independent company. Kambi Group offers odds and other related services to betting sites and other gambling websites that offer betting. Among other things, the company also offers risk management for those betting sites that do not want to take on this job themselves.
Like Kindred Group, Kambi Group is based in Malta, while the company is listed on shares on the stock exchange in Stockholm. However, Kambi also has offices elsewhere in Europe, Asia, the USA and Australia. In recent years, the company has invested in several new services they can offer their customers, such as virtual sports and 3D sports.
DraftKings
The American company DraftKings, which has its head office in Boston in the USA, was established in 2012. The company also has offices in other strategic locations, such as Malta, Gibraltar, Ireland, Isle of Man, London and Ukraine. The main product of DraftKings is their own online casino and betting site of the same name. Fantasy sports is another product they offer and this is very popular in the US.
At the end of 2019, DraftKings acquired SBTech – a leading provider of betting platforms – and the company is listed on the US Nasdaq Stock Exchange.
How to Start Investing in Non GamStop Casinos?
For anyone who hasn’t invested in iGaming or investments in general before, there are several factors you should keep in mind before starting. By making a plan for your investments, you increase your chances of success, instead of leaving everything to chance, for example by random buying and trading.
One of the first things you can do is decide whether you want to invest in stocks, CFDs, or crypto and NFTs. However, you can of course choose several of these investment categories if you wish. But depending on what you choose, it can affect which trading platform or broker you should choose. For example, you should consider several online brokers so that you can choose the one with the lowest costs. At the same time, the trading platform you choose must allow you to spread the risk.
Briefly summarized:
- Do you want to invest in shares, CFDs, ETFs or crypto/NFTs?
- Focus on keeping costs as low as possible
- Choose the right trading platform or online broker for you
- Control and spread the risk
