Should you hold these 2 FTSE gambling stocks in 2022?

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Should you hold these 2 FTSE gambling stocks in 2022?

 Should you hold these 2 FTSE gambling stocks in 2022?
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Highlights

  • Betting and Gaming Council (BGC) supported enhanced spending checks while also cautioning the ministers that they should focus on gamblers with problems rather than incorporating blank measures.
  • The call comes amidst the government’s plans to overhaul gambling rules in the country.

The UK’s gambling lobby group, Betting and Gaming Council (BGC) has recently stated that though it was supportive of improved affordability checks, the ministers ought to focus on gamblers with problems rather than incorporating blank measures.

The body said that the government should seek to strike a balance between protecting vulnerable groups while simultaneously risking the strict rules would not push punters to the growing black market.

The call from the industry body comes as the government is planning to overhaul its gambling and betting-related rules in the country. A recently YouGov survey commissioned by the BGC found about 20 per cent were willing to submit to the affordability checks, while 58 per cent did not support the move.

Gambling stocks to hold in 2022

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Given this scenario, let us look at 2 FTSE 100 index listed gambling related stocks and explore their investment prospects:

  1. Entain PLC (LON: ENT)

Entain is among one of the biggest gambling and sports betting companies.

The group’s Q4 2021 total net gaming revenue (NGR) rose by 6 per cent on a constant currency basis year-on-year, while its FY 2021 NGR jumped by 8 per cent on a constant currency basis year-on-year.

Its FY 2021 total online NGR was 13 per cent on a constant currency basis, year-on-year, wherein FY 2021 online gaming segment had a constant currency y-o-y growth of 6 per cent, and the online sports segment had a CC y-o-y growth of 22 per cent.

The group has a market cap of £9,590.14 million and has given shareholder’s a return of 20.70 per cent as of 25 January 2022.

  1. Flutter Entertainment PLC (LON: FLTR)

Flutter Entertainment PLC is an Irish bookmaking company involved in the global sports betting, gaming, and entertainment sector.

In a note published on 11 January, the group reported it had completed its acquisition of Tombola following the receipt of the necessary regulatory confirmations.

Its Q3 2021 average monthly players rose by 13 per cent on a y-o-y basis to 7.257 million, from 6.401 million in Q3 2020.

Its Q3 2021 total revenue rose by 12 per cent on a constant currency y-o-y basis to 1.439 million, up from 1.325 million in Q3 2020.

It estimates its adjusted EBITDA for the group (not including US) FY 2021 to be between £1.24 billion and £1.28 billion, compared to an earlier guidance range of £1.27 billion and £1.37 billion. The lowered guidance is due to unfavourable sports results of 24 days in October 2021, and other factors.

The group has a market cap of £19,257.40 million as of 25 January 2022.

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