Whether it’s getting together with friends and doing battle over a game of Monopoly, meeting online for massive multiplayer online roleplaying games (MMORPGs) or entering an online casino and playing roulette, blackjack or other traditional casino games, gaming is popular.
According to statistics on the website of consumer and market data company Statista, revenue in the online gambling market is estimated to reach around $97.15 billion in 2024. Some people enjoy gaming, especially igaming, so much that they think it’s a good investment. Below is a look at why people see gambling as a profitable way to invest, the growth of gambling, the rewards investment in the industry can bring and some of the benefits and risks of investing in gambling.
Thinking gambling is a good investment
The one thing that people who think gambling is a good investment have gotten right is that it’s possible to win a lot of money in a short space of time.
They also think doing so requires relatively little effort, which couldn’t be further from the truth. Just like investing in shares or startups or engaging in other forms of investment, the gambler must manage risk successfully to succeed. They must weigh up the odds of making a profit, and the more money they risk, the higher the profit they make could be.
All of this means that just like investors, gamblers must study data, patterns and more. They may even study how others invest or gamble and see what they can learn from it and apply (and not apply).
Quite apart from this, there is the thrill gambling brings. Making lots of money from investments gives quite a buzz. A big win does the same. Even if the gambler loses, they still get pleasure from having played.
The growth of gambling
The internet has been a major catalyst for the growth of gambling worldwide. The ability to place bets online and casino games online, not to mention study online for the purpose of gambling, has helped gambling grow hugely. Today, people have much more access to gambling services than ever before. They can play at any time they want in the comfort of their own homes.
Then there is the access to gambling allowed by authorities. In more than 80% of countries around the world, gambling is legal in some shape or form. The tax dollars generated from gambling activities are simply too good for many authorities to resist.
The US and Canada are two countries known to have opened up their gambling market over the last few years. Now residents can play at an online casino in Alberta, Ontario, New Jersey, Michigan and many more.
Making investment in the gambling industry work for you
If you’re looking to invest in gambling, shares in a casino gaming operator could prove very profitable for you. The casino industry is extremely robust and going from strength to strength despite some of the challenges it has faced legally and economically. Part of this is driven by the public’s demand for entertainment.
Investment in a casino operator is a solid investment because these establishments offer gaming, dining, entertainment, in some cases hotel accommodation and more. This diversified income stream reduces risk, allows casinos to boost growth and makes them stable investments.
Technology is another factor that lends to a casino operator’s appeal to investors. Casinos, particularly online casinos, keep up with technology because it allows them to expand their offering and enter new markets. Casinos are always looking for opportunities to grow, and a lot of the time they’ll identify them and act upon them. This can see them reach into new countries, diversify their offering, open new establishments and more.
Weighing up the pros and the risks of investing in the gambling industry
As mentioned, casinos and other gambling services have massive potential growth and, in theory at least, are very stable investments. They can provide you with a steady and even highly profitable source of income because of this stability. When investing in the gambling industry, you should consider not just financial stability, but also the regulatory environment, technology, the operator’s market share and the power of their brand.
As sweet a deal as investing in the industry gambling may sound, it does come with risks. Despite their robustness, gambling operators are still sensitive to changes in the economy, and when things are bad, players will cut back on how much they spend. They must also comply with tax and licensing regulations, and any changes to these could affect your investment. Be aware, too, that the gambling industry is highly competitive. There are lots of operators, which can lead to major spending on marketing, competition on pricing and lower profit margins.
The nature of gambling means investors in the industry can make a lot of money, either from operating gambling services or by investing in one. Well established operators make appealing investment opportunities for investors because of their stability and their potential for growth.
