iGaming Stock Predictions for 2022

Sports betting and iGaming has become big business in the US over the past few years. Since legalising both forms of gambling at a federal level in 2018 more than two dozen states have chosen to legalise sports betting and some online gambling, with another dozen expected to follow suit in 2022. It’s likely to be a big year for iGaming companies, so what’s likely to happen with the stock prices? Are they going to do well in 2022 or will they remain volatile as a result of the uncertainty of the past few years?

Investing in Stocks This Year

There is no black and white answer as to whether you should be investing in stocks this year; no one can accurately predict what the future of any industry is going to look like over the next 52 weeks. However, if you have some money that you wish to invest then doing some research and looking up your options is a wise idea. Just remember that any investment such as this can increase as well as go down so be sure to only invest money that you can afford to lose should something go wrong. It is a wise idea to look at what stocks have done well over the past 12 months, alongside reading industry news for anything coming up that could affect the value of any stocks you have an interest in.

Should I invest in the iGaming Industry?

In all honesty, the answer to this question depends on where you look. Some of the biggest companies are predicting that 2022 is going to be a bad time to invest in iGaming stocks as the market is likely to see more volatility. Meanwhile, others are still convinced that the gold rush is going strong and investing in stocks is like printing money. Really, it’s a reflection of the industry as a whole over the past few years – very much unpredictable.

According to CNN, investing in iGaming this year would be a huge gamble  – although their predictions are based on the stock prices of either hybrid casinos or brick and mortar casinos. One of the driving factors for this pessimistic view of the stock market is the share price of MGM who have announced that they’re looking to sell one of their most famous resorts on the Las Vegas strip. Caesars are also looking to sell one of its Las Vegas properties but hasn’t yet said which location. Despite their disappointing article of the gambling industry’s ability to succeed, many critics have pointed out that this is more of a nod to the gambling industry-changing than dying. All of the major brands that are selling properties on the Las Vegas strip are doing so because it’s not as profitable as online. Their point isn’t entirely lost though – DraftKings is one of the biggest online casino and sports betting companies in the US and their stock is down nearly 25% this year.

Why Are People Unsure About the iGaming Industry?

One reason for this could be the number of online casinos being set up and the amount of money going into promotion, rather than a wider nod to the state of the industry. As an example, Maryland is set to legalise sports betting and mobile gambling in 2022, but has limited the number of online retailers that are allowed to operate in the state. This is creating fierce competition and uncertainty within the online market. Many of these sportsbooks may also expand further into other iGaming areas, like online casinos and seek to entice new customers with some of the best casino offers in the UK. The launching of new services like this can affect the value of stocks; which means that keeping an eye on this news and investing at the right time is crucial if you want to have the best possible chance of ensuring that your investment is a success.

What To Watch Out for in 2022

Volatility is definitely something that you can expect in the market in 2022 with so much uncertainty around unemployment and so many companies fighting for limited places in the market.

Investor Place actually listed DraftKings as one of the best companies to invest in this year, alongside Esports Technologies and GAN. Their reasoning for this is that DraftKings is currently one of the biggest platforms – offering mobile sports betting in 14 states and has announced big mergers with companies like Golden Nugget Online Gaming. In November 2021 their revenue had increased by 60% year on year, but their losses had also increased by over $200million.

Nevada based Esports Technologies isn’t a bookmaker as such but offers wagering products and develops predictive gaming technologies. One of its platforms also allows affiliates to receive commissions based on confirmed deposits. In October they announced a merger with Aspire Global, but overall net revenue came in almost 30% down on the previous year. However, their net loss improved from $27,654 per share to just 38 cents per share which indicates that 2022 could be a good year.

California based GAN is another one to watch in 2022. The Software As a Service company provides online gaming and sports betting solutions. Revenue was down 7% from the previous quarter with an increased net loss.

Investing in stocks is always going to be a gamble, but it appears that iGaming and online sports betting is particularly volatile at the moment. In some corners, it looks as if the gold rush has already been and gone, but other stocks show the promise of future growth. While it’s impossible to tell, it’s likely that the increase in states legalising online betting and gambling will at least have some positive effects. If you do decide to take the plunge into iGaming investment then just make sure that you research as much as possible and keep an eye on industry relevant news, the value of stocks can change quickly and often timing is everything when it comes to successful stock investment.

Jack Potter

“Entrepreneur. Freelance introvert. Creator. Passionate reader. Certified beer ninja. Food nerd.”