Has the rapidly growing iGaming industry piqued your interest? Do you want to invest in it and make some profits? Then you’re in the right place!
In this article, you will get a deep sense of the iGaming market and its growth potential. There are a few crucial points you need to consider before you actually choose to inject your hard-earned money into the iGaming sector.
Only after you have carefully gone through all the points should you make your decision. So, what’s the wait? Let’s begin!
Although iGaming is more than a sixty billion dollar growing industry, it may have risks and pitfalls like any other fast-growing market.
The most common and concerning issue that persists is iGaming payments. Due to the increasing banking fees, held-up payments, security concerns, vague user interface, etc., investors are holding their cash back.
But despite those, the iGaming industry has been growing steadily and ceaselessly. Several states in the US have opened up this market, while Canada has recently expanded the possibility of a large legal iGaming industry.
Furthermore, China, India, Japan, Brazil, the UK, and many more countries have robust iGaming and eSports markets too.
Therefore, investing in the iGaming sector could very well be one of the wisest investment decisions. However, you need to keep in mind certain crucial points.
Check the five top tips before making your iGaming investment kickstart:
1. Learn How iGaming Works
Essentially, iGaming is online gambling. This can involve online betting as well as online casino games.
The gaming variations under iGaming are eSports, online casinos, poker, and sports betting among other things. Learn about every aspect a little bit – enough to understand the entire industry in sufficient depth.
2. Potential iGaming Instruments
iGaming is not a single-function industry. It’s a market where you’ll have opportunities to invest in several instruments. This may be one of your best investments if you’re careful about its several niches.
That’s how your investment will become more secure and rewarding. You don’t have to put all your eggs in one basket.
So, what iGaming offers for an investor are:
Stocks of Game Provider
You can buy the shares of the licensing companies that actually operate the online casinos. These are the companies that obtain the licenses and operate the casinos or allow other brands to operate online casinos under their auspices.
Online Casino or Online Sportsbook Stocks
Ever heard of Leo Vegas, Stars Group, or Ladbrokes? These are public shares from online casinos or online sports betting sites. They are often considered the equivalent of blue-chip stocks in the iGaming industry.
If you want to invest in the iGaming industry, this might be the best investment vehicle for you.
Exchange-Traded Funds (ETFs) in Gaming
Some of the high-profile money-making stocks of ETFs are:
- SPDR S&P 500 ETF Trust (SPY)
- Vanguard Mid Cap ETF (VO)
- Vanguard Total World Stock ETF (VT)
- iShares Core US Aggregate Bond ETF (AGG)
3. Assess the Market
Testing the waters is highly essential in any investment. And the iGaming market poses a high risk due to its volatile nature. That is primarily due to the high regulatory and licensing requirements. Moreover, online casinos and sports betting sites are also vulnerable to cyberattacks.
However, you may look for scopes of diversified investment in this sector. How so?
Well, being a technologically backed industry, it needs research and development, technological advancement, legal and financial support, etc. And they need hard cash for these functions too.
So, you should analyze such opportunities for secure and long-term investment.
4. Cash in the Technological Advancement
Technology is the lifeblood of the iGaming industry. The state-of-the-art tech has been adapted to enhance the eSports and online casino user experience.
Let’s not forget the virtual reality, 3D, etc., which have pushed the gaming industry some extra miles.
So, that should make you think. If the online gaming experience is exponentially living up to the users’ expectations, how far can the iGaming market expand!
Exactly! The market potential is simply too big to ignore. You can only expect the market to grow bigger and bigger every day. And investing in such a robust market will be a wise decision for you.
5. Foresee the Future Growth
Investment proves fruitful when you can see what lies beyond the horizon for a particular market or investment vehicle. As far as iGaming is concerned, the growth projections seem to follow an upward trajectory and you can consider them to be quite accurate.
You should also consider the number of markets being included in this industry. Maybe not all jurisdictions in every state in the US or countries outside will allow the iGaming sector to flourish.
However, the market is substantial as it is and the number of markets is also projected to grow. Thus, it will remain a pretty good area for investment for a long time to come.
How to Invest in iGaming?
Now that you’ve learned the basics let’s get to the action.
There are five ways you can invest in the iGaming market:
- The Game Makers: The gaming companies, known as casinos, can be the investment spots. These casinos run both regular sportsbooks and online sportsbooks besides hotels and gambling. Las Vegas Sans, Penn National Gaming, etc., are a few notable players in this market.
- Gaming Exchange-Traded Funds (ETFs): Gaming ETFs can give you more comprehensive access to online gaming, sports betting, and traditional gaming spots. Roundhill Sports Betting and VanEck Vectors Gaming are the two major funds in this investing zone.
- Apps: Look for the sportsbook app-making companies directly involved in sports betting. Your betting investment agenda should find its way down this line. Rush Street Interactive, Draft Kings, etc., are some of the top players in this area.
- Tech Support Organizations: If you’re smart, you can put your money in the tech support companies that back the online gaming and betting apps and operations. Kambi Group is one of the most notable names in this particular area.
- Race Course Operators: Even horse racing courses are an excellent place to connect to online betting for investment. The operators in the race course also have eSports facilities. One of the popular names in this zone is Churchill Down.
If iGaming is your next investment target, we urge you to follow the five tips before putting your money on the line. Take notes of the points we’ve tried to make.
Be wary of the areas of the iGaming you will invest in. Let your emotion not drag you toward a lost project.
The iGaming industry is a growing and lucrative market. There seems to be no reason you shouldn’t invest in it. However, prudence is imperative when it’s about your hard-earned money.