The gaming industry offers more than excellent entertainment options. Most of the related companies operate in the world-known stock markets. This characteristic makes it possible to invest in them and obtain good profits if done intelligently.
This sector has diversified and adapted to the needs of modern times. The 2020 pandemic showed that it is one of the most vital sectors thanks to its ramification towards online gaming.
The technological innovation employed by gambling venues, the variety of offers, and their global presence make them attractive to investors. Suppose you are looking where to put your money to work. Consider the eight casino stocks from the review.
You will find not only company stocks but also ETFs and mutual funds. This way, you can choose the option that best suits your needs.
1. Galaxy Entertainment Group [HKG]
This Hong Kong-based company was founded in 1988 and is engaged in tourist accommodation, construction, and gaming. They own and operate hotels and casinos in Macau. Also, they are listed on the Hong Kong Stock Exchange.
From its beginnings, this company had an outstanding performance until the financial crisis of 2014. A stock whose business has excellent relevance in construction, it is logical that it is subjected to the cyclical downturns of the sector. But its value has now rebounded and has been maintained. That is mainly due to the attention Macau is receiving as the epicenter of the industry.
2. Las Vegas Sands Corp [LVS]
It is a resort and casino company based in Las Vegas. According to Forbes magazine, it was founded in 1988, and its chairman is Sheldon Adelson, one of the richest men in the world. The company owns the famed Venetian casino/hotel. The company is listed on the NYSE (LVS).
This company has a turnover of more than 46.6 billion dollars. Currently, its operations are focused on the Asian market after selling its properties in Las Vegas. This is due to a bet by its executives that the Asian market will rebound shortly.
Although its shares have recently had a negative development, they may be a good option for medium and long-term investments.
3. Aristocrat Leisure LTD [ASX]
This is an Australian company based in Sydney, dedicated to the manufacture of gaming machines. It is Australia’s largest gaming company and one of the world’s largest manufacturers of slot machines. It is listed on the Australian Securities Exchange.
Investments in developers can be risky if the company is not committed to innovation. Fortunately, that is not the case with this company. Thanks to its foray into online game development, its shares have grown considerably. Moreover, its bet is focused on innovation, so its relevance can be maintained.
4. MVIS Global Gaming NR USD [MVBJKTR]
This is one of the ETFs (exchange-traded funds) most popular. The index is composed of mid-cap stocks with a minimum capitalization of $150 million.
The stocks that make up the index must have at least 50% of their earnings in the gaming sector. It is made up of 39 components. The most heavily weighted are as follows:
- Galaxy Entertainment GP.
- Las Vegas Sands Corp.
- MGM Resorts International.
- Wynn Resorts LTD.
- Sands China.
- Paddy Power Betfair PLC.
- Gaming and Leisure Properties INC.
- TATTS Group LTD.
- Crown Resorts LTD.
- Wynn Macau
5. VanEck Vectors Gaming ETF [BJK]
The ETF is committed to tracking at least 80% of the benchmark’s allocation. The gaming sector invests in casinos, lotteries, sports betting, and in services, equipment, and technology dedicated to gaming.
The ETF is invested in three sectors: consumer cyclical (88.44%), technology (7.92%), and real estate (3.64%).
The distribution of the ETF’s investment by geographical location has two predominant countries, the USA and China.
As it was founded in 2008, you have the opportunity to study over ten years of performance. This will help you better evaluate the performance of their operations to decide whether or not to invest.
6. USA Mutuals Barrier Investor [VICEX]
It is an investment fund, also known by the nickname of “The Vice Fund.” In addition to housing investments in casinos, it also invests in the tobacco, alcohol, and security sector.
By investing in it, the fund seeks the possibility of diversifying the investment, acquiring a specific defensive position that obtains higher returns than the different indexes, both in upturns and downturns.
The fund requires a minimum investment of $1,000 for “retirement” accounts and $2,000 for “non-retirement” accounts. It also offers three additional share classes of the fund:
- Class A (VICAX)
- Class C (VICCX)
- Institutional Class (VICVX), which carries associated alternative cost structures.
These are the ten stocks with the highest weighting within this fund:
- Altria Group Inc.
- Philip Morris International.
- Reynolds American Inc.
- MGM Resorts International.
- Las Vegas Sands Corp.
- Imperial Tobacco Group Plc.
- American Outdoor Brands Corp.
- Wynn Resorts Ltd.
- Raytheon Company.
- Constellation Brands Inc.
7. Flutter Entertainment (OTC:PDYPF)
This company owns some of the most famous brands in the casino industry. Flutter Entertainment is behind Betfair, PokerStars, TVG, FoxBet, and more. In addition, it is also responsible for sponsoring eSports tournaments and traditional sports that you can bet on from its platforms.
Thanks to all its operations, this company owns almost $40 billion. They also have 40% of all the shares in the sports betting sector in the United States. Its shares have increased up to 12% and are expected to continue to grow as it expands its operations to other states and countries.
8. Caesars Entertainment (NASDAQ:CZR)
This company has more than 50 properties related to the gaming industry around the world. Eight of these properties are located on the Las Vegas Strip. A few years ago, the company was facing bankruptcy, but that is in the past.
They now have a turnover of more than $18 billion a year and are expanding their operations to other markets. Among them, we can highlight sports betting, which is one of the most popular.