The world of online gambling is becoming more and more popular as each year passes. This includes casinos, sports betting sites and all other forms of gambling websites. This promises a huge investment potential for people that are looking to diversify their portfolios.
It’s interesting to note that when you look at the wealthiest people in the world not all of them have physical assets that you could consider to be significant. In fact, in most cases, at least 90% of the wealth they have derived has been through the acquisition of software and technological assets.
The economy now is tech-driven and the investments of today are not the same as what they were in the recent past. Investors can currently consider several different digital opportunities such as cryptocurrencies, forex, online gambling and much more.
Online Gambling Investments
Online gambling surged in 2020 due to the pandemic when many physical casinos and sports events were closed. Gamblers moved to a new method of placing bets and online gambling sites were thriving. The trend has continued with many gamblers preferring to place their bets online versus going to the brick-and-mortar casinos and sports events that have since reopened.
There are some online companies offering ETFs including Penn National Gaming, Flutter Entertainment and Draft Kings, to name a few. Investors should be aware, however, that online gambling stocks can be extremely volatile. You can expect to experience 20% up to 30% swings on the stocks. This is not a short-term but rather a long-term investment that should not be a primary component of your portfolio but rather an add-on to it.
Should You Invest in Gambling Stocks?
When viewed as an entire sector, many casino stocks have been underperforming during the last 10 years while on the market. On the other hand, there have been some gaming stocks that have done very well. It’s hard to tell right now with the future will look like in terms of online and off-line gambling but it’s expected that the online gambling trend will continue. There is a potential to see a huge payoff by investing in the casino industry if you’re willing to take the risk over the long term.
Watch the new trends
You’ll need to watch emerging trends carefully as well. For example, right now many individuals are looking for crypto casino without verification requirements. Many individuals don’t like the idea of sending the information contained in private documents over the Internet to prove their identities. Keep an eye on the trends and the stocks that look the most promising if you want to venture into online gambling ETFs.
One interesting thing to note as well is that there is a big similarity between online gambling and investing in the stock market. Both of these industries rely on supply and demand, high profit and loss potentials and price volatility. Many online gamblers began to speculate on the stock market when sporting events closed down during the pandemic in 2020. Perhaps this is why it makes so much sense to invest in gambling stocks when you’re gambling in the stock market itself.