Casinos have traditionally kept customers coming back to their brick-and-mortar establishments by offering gaming and associated leisure activities. As technology advances, physical locations give way to online spaces where gamblers can participate from anywhere in the world. Thus, casinos can now attract a wider audience, resulting in more revenue and overall industry growth.
Since more and more investors are looking toward this industry for potential trading opportunities, we have created this guide to introduce you to the best casino stocks to buy in 2021.
Where Can I Buy Casino Stocks?
Most of the online casinos operate globally and are listed on various stock exchanges. Finding a reputable platform that lets you buy these stocks with low fees can be a challenge, but our shortlist of the best trading platforms should help. A good broker will always prioritise transparency and will focus on making trades as simple as possible.
Overview of the Casino Industry
For many decades, the casino industry has tapped into the primal human instinct - opportunism. Traditionally, gamblers would travel to their local casino, or for the big players, make the pilgrimage to the birthplace of gambling: Las Vegas.
In 1994, the first virtual gaming software was developed by Microgaming, paving the way for online casinos. Two years later, the need for regulation of the online casino space saw the formation of the Kahnawake Gaming Commission to ensure fair play and transparency.
Between then and now, the casino industry has leveraged digital innovations to improve gamblers’ access to online gaming. You can now play almost any casino game using any device — mobile, PC, and even your TV — from the comfort of your home. Market data shows the casino industry is expected to keep growing, both in terms of new entrants (pure online casinos) and incumbent companies looking to complement their physical presence.
What Are the Trading Hours for Casino Shares?
Trading hours refer to the times that markets are open for the buying and selling of stocks. Depending on where the company is based and listed, trading times will differ. Casino stocks listed in the North and South American countries are typically traded during NYSE trading hours, from 9:30 A.M. to 4 P.M. (ET), with allowances made for the NASDAQ pre-market session. However, as this is now a global marketplace, you should be able to trade them around the clock since they’re listed on stock exchanges around the world.
How to Trade and Invest in Casino Stocks?
Open a Trading Account
Before you begin to invest in casino stocks, you will need to open a trading account on your selected brokerage platform. This is a relatively simple process, taking only a few minutes to select a username, a password and provide a contact email or telephone number. After this, you will need to provide some identification to verify your account, e.g., a valid passport or driving license.
Once you have your trading account fully activated, you can add funds using a debit or credit card. These deposits rarely have fees attached, but it is always worth checking to make sure when you select which broker you plan to use. Once this is done, you can navigate to the stocks trading page and select the casino stocks of your choice.
Place Your Trade
If you are a beginner, it is worth making use of a demo account (if available) before committing to any actual trades. These practice areas allow you to get a feel for the platform and get comfortable with the trading mechanisms. Once you feel confident, you can place trades in a live account.
Top 10 Casino Stocks to Buy
The best way to gauge the casino industry's overall performance is by analysing the VanEck Vectors Gaming ETF (BJK), which comprises both traditional brick-and-mortar casinos and online casinos. Although the price of this ETF fell in Q1 2021, it performed well in the previous five years. Also, you can check this curated list of the ten best casino stocks to buy this year.
- MGM Resorts International
- Monarch Casino Resort
- Vail Resorts
- Caesars Entertainment
- International Gaming Technology
- Hilton Worldwide Holdings
- Ballys Corp
- Boyd Gaming Corp
- Penn National Gaming Inc
- Las Vegas Sands
1. MGM Resort International
With a market cap of approximately $14 billion, MGM is one of the most rewarding and best-known casinos. This company offers world-renowned hotels and amenities, gaming activities, and online casino gaming. The partnership between Bet MGM (an MGM sports betting subsidiary company) and The Athletic (a leading digital sports media company) helped MGM gain an additional 1 million subscribers. The adaptability of this corporation makes it the one to watch out for at any given time.
2. Monarch Casino Resort
This Nevada-based casino has been operating since 1993 and currently has a market cap of around $1 billion. It offers convention facilities, casino gaming activities, resort amenities, and retail outlets. It manages the Colorado-based Black Hawk casino, Atlantis Casino Resort Spa, and BetMonarch. Through BetMonarch, it has established itself as a player in the online gambling space and sports betting industries. Despite being one of the small publicly-traded gaming industry companies, Monarch casino boasts one of the best balance sheets.
3. Vail Resorts
With roots in Colorado, Vail Resorts has a presence in 15 US states and operates 37 resorts in total. It also has resorts in Europe, Canada, and Australia. With a valuation of about $11.6 million, Vail is the closest casino resort to MGM holdings in terms of market capitalisation and gaming revenue. Vails Resorts is a significant player in the casino resorts industry and hence makes it to this list.
4. Caesars Entertainment
With a market cap of approximately $16 billion, Caesar Entertainment is yet another casino with roots in Nevada. In addition to its brick-and-mortar spot on the Las Vegas strip through Caesars Palace, it also has an agreement with online casino software provider NetEnt gaming. Such adaptability means this casino will use every opportunity to make money for its investors.
5. International Gaming Technology Plc
Through its various segments — from the North America Lottery to International gaming interactive, North America gaming interactive, and Italy gaming interactive — IGT provides casinos with the gaming equipment and the software that runs them. This company designs, manufactures, and markets the products in their designated regions. It is safe to say that, as long as casinos continue operating, this company will be one of the leaders in the industry. IGT has an approximate market cap of $3.6 billion at the time of writing.
Expert Tip for Investing in Casino Stocks“ When investing in casino stocks or any other stocks, it is important to be comfortable with the risks of investing so that you don’t panic if the market goes against you. If your fundamental and technical analyses are sound, you won’t have to worry about minor market fluctuations. ”- Alice Wanjiku
Why Invest in Casino Stocks?
The 2020 coronavirus crisis demonstrated that technology and gaming companies can perform well when people are locked down and have to stay at home. Online casinos perfectly fit the bill, and once users are hooked, they would probably keep playing when lockdown restrictions are lifted.
Frequently Asked Questions
Many casinos can claim to be the top-performing ones, but MGM Holdings seems to be the best in terms of value and growth potential as of this writing.
As gambling is legal in most countries around the world, its spread to the online space has opened a whole new world of possibilities. Therefore, casino stocks could be a good investment.
Many casinos have strong balance sheets, but the most liquid casino company at the time of writing is Las Vegas Sands, which has a market cap of approximately $42.8 billion.
Any trader or investor with access to a trading platform can invest in casino stocks, either as individual share purchases or buying a basket of casino stocks via an exchange-traded fund (ETF).
Beginner investors may feel most comfortable when investing in a popular casino stock. Alternatively, it’s always a good idea to spread your risk by investing in the catch-all VanEck Vectors Gaming ETF or selecting multiple assets to add to your investment portfolio.
Although it might sound odd to describe casinos as important, they do provide opportunities for people to relax and detach from their daily routines.