Top 3 FTSE betting and gaming stocks to buy

Highlights 

  • Casino and gambling-style online games have witnessed a huge surge in the UK in the last few years.
  • Gambling companies have been benefiting because of the rise in online casinos. Many companies reported a rise in revenue and profits in the past one year due to a pickup in online gaming.

Casino and gambling style online games have witnessed a huge surge in the UK in the last few years. Gambling companies have been benefiting because of the increase in online casino. Many companies reported a rise in revenue and profits in the past one year due to pick up in online slots gaming because bricks-and-mortar betting shops and centres were closed primarily due to lockdown.

As per the market report, the UK public spent close to £2.2 billion on online gambling in 2019. Due to the rise in online gambling in recent years, primarily due to ease of access through a smartphone, a new Online Safety Bill was drafted in the UK to reduce online frauds and protect users.

Also, there has been a visible rising trend in the casino industry in the United States market following the lifting of the sports betting ban. As per market research, the US sports betting industry is estimated to be worth USD 55 billion a year, a bigger market than the UK market.

As a result, many UK-based companies like Entain Plc and Flutter Entertainment Plc have set up business divisions in the US market through tie-ups and joint ventures with the US partners.

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Let us look at 3 FTSE listed casino and gambling stocks that could be a good buy because of huge potential and surge in online betting:

Entain Plc (LON: ENT)

The company is into sports betting and gaming segment in the UK and the US market. It is one of the largest companies from the casino industry operating its services through a portfolio of popular brands.

The company reported strong gaming revenue in the third quarter ended 30 September 2021. The company and its US partner BetMGM have a 23% market share in the US sports betting market. As a result of good performance across the major markets, the company expects EBITDA to be in line with the previous expectation of £850m - £900 million for FY2021.

Entain Plc’s current market cap stands at £12,730.81 million as of 20 October 2021. In the last one year, the stock has given a 110.45% return to its shareholders.

888 Holdings Plc (LON: 888)

The company operates through consumer-facing websites providing online entertainment and solutions.

The company reported a surge in B2C gaming and betting revenue driven by the company’s expansion in the regulated markets. As a result, it reported total revenue of USD 229.9 million and a 6% rise in average daily active user in the three months ended 30 September 2021. The company expects to start operation in the Netherlands by the second half of 2022 after getting the licence, which will further boost the company’s revenue.

888 Holdings Plc’s current market cap stands at £1,516.39 million as of 20 October 2021. In the last one year, the stock has given a 48.74% return to its shareholders.

Flutter Entertainment Plc (LON: FLTR)

FTSE100 listed company has operation in several countries providing sports betting and gaming services through different brands. The company has recently appointed Amy Howe as the new CEO for its US division, FanDuel. The new CEO will handle day-to-day operations in the US markets. The company plan to list FanDuel in the US stock market is back on track following the appointment of a full-time CEO. Listing of shares in the US market will unlock value for the shareholders and increase the company’s investor base.

Flutter Entertainment Plc’s current market cap stands at £25,222.11 million as of 20 October 2021. In the last one year, the stock has given a 11.23% return to its shareholder.

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