It's been a rough year so far for casino and online gambling stocks, but one firm has identified a handful of gambling stocks that investors should consider buying on the dip.
The Analyst: JMP Securities analyst Jordan Bender has initiated coverage of the following five stocks:
Related Link: Final Draft Of Macau Gaming Law: What Investors Need To Know
The Thesis: Bender broke down his bullish stance on iGaming, online sports betting and the Nevada casino market.
U.S. iGaming legislation could be a major catalyst for Rush Street, Bender said.
"As NA online sports betting (OSB) and iGaming markets ramp, we believe gross gaming revenue (GGR) of ~$8.1B in 2021 will reach $39B by 2030E (23% CAGR), $3.9B in Canada (30% CAGR), and >$800M in Colombia/Mexico," he wrote.
Related Link: MGM Resorts Analysts React To Q1 Earnings Beat, LeoVegas Acquisition, Macau Weakness
Bender said Penn's Barstool brand differentiates it from competitors.
"Barstool complements PENNs casino database to create customizable content and product for a younger, more football-focused audience, a similar demographic to the OSB player," he said.
Bender values BetMGM at $15 billion and says MGM is the market leader in iGaming.
"We believe a combination of BetMGMs omni-channel, with 37m database members, along with Entains market-leading technology positions it ahead of the competition," he wrote.
Golden Entertainment is focused primarily on Nevada, but Bender said it is diversified within the state.
"Nevada is one of the healthiest U.S. gaming markets, and despite volatility in the broader macro environment, our recent visit points to no slowdown for the core casino customer or the size of the wallet," he said.
Finally, Bender said DraftKings is a high-growth, vertically integrated online sports betting and daily fantasy sports market leader.
"While we are in [the] early innings of the online gaming sector, we think DKNG can maintain top share in NA online gaming, driven through cross-sell and its superior technology capabilities in SBTech, leading to profitable growth," he said.
Benzinga's Take: There are several different dynamics playing out in the gambling space these days that make stock selection critical. Ongoing lockdowns in China has made Macau an albatross for casino stocks, while Las Vegas has recovered nicely from the pandemic. In addition, online sports betting and iGaming have been tremendous growth sources, but some of the early market leaders are struggling with heavy losses associated with aggressive marketing and advertising spending.
Link:
JMP Analyst Names 5 Gambling Stocks To Buy On The Dip - Benzinga - Benzinga
- OnlineGambling.com > #1 Online Gambling Sites Guide 2016 [Last Updated On: June 10th, 2016] [Originally Added On: June 10th, 2016]
- Gambling Problem Hotline - 800 Gambler [Last Updated On: June 10th, 2016] [Originally Added On: June 10th, 2016]
- Online Gambling Sites & Games Guide | Gambling.com [Last Updated On: June 10th, 2016] [Originally Added On: June 10th, 2016]
- World Casino Directory - Casino Guide and Gambling Forums [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- South Florida Events & Restaurants - southflorida.com [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- Online Casino & Online Poker Room - 888.com [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- Gambling Addiction and Problem Gambling - helpguide.org [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- The History of Gambling - Complete Gambling History Timeline [Last Updated On: June 21st, 2016] [Originally Added On: June 21st, 2016]
- Welcome to The Alderney Gambling Control Commission [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- Gambling Law US - State Gambling Laws United States [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- Gambling Addiction: Ten Ways to Stop Forever | Healdove [Last Updated On: July 14th, 2016] [Originally Added On: July 14th, 2016]
- GambleAware: Gambling Help & Gambling Addiction [Last Updated On: July 14th, 2016] [Originally Added On: July 14th, 2016]
- New York Casinos & Gambling in New York [Last Updated On: July 31st, 2016] [Originally Added On: July 31st, 2016]
- Virginia Casinos & Gambling in Virginia - World Casino ... [Last Updated On: September 2nd, 2016] [Originally Added On: September 2nd, 2016]
- William Hill Casino Club - Up To 150 Casino Bonus [Last Updated On: September 6th, 2016] [Originally Added On: September 6th, 2016]
- gambling | Britannica.com [Last Updated On: September 10th, 2016] [Originally Added On: September 10th, 2016]
- Texas Casinos & Gambling in Texas - Texas Casino Directory [Last Updated On: September 16th, 2016] [Originally Added On: September 16th, 2016]
- Problem gambling - Wikipedia, the free encyclopedia [Last Updated On: September 20th, 2016] [Originally Added On: September 20th, 2016]
- Casino Gambling Web | Best Online Gambling News and Casinos ... [Last Updated On: October 13th, 2016] [Originally Added On: October 13th, 2016]
- Gambling | Wex Legal Dictionary / Encyclopedia | LII / Legal ... [Last Updated On: October 13th, 2016] [Originally Added On: October 13th, 2016]
- The Florida Council on Compulsive Gambling [Last Updated On: October 13th, 2016] [Originally Added On: October 13th, 2016]
- Gambling Addiction: Symptoms, Causes, and Treatment [Last Updated On: October 13th, 2016] [Originally Added On: October 13th, 2016]
- Gambling Addiction Treatment Center, Rehab - Non Gambler [Last Updated On: October 25th, 2016] [Originally Added On: October 25th, 2016]
- New Jersey Casinos & Gambling in New Jersey [Last Updated On: November 21st, 2016] [Originally Added On: November 21st, 2016]
- Gambling | Las Vegas Review-Journal [Last Updated On: November 23rd, 2016] [Originally Added On: November 23rd, 2016]
- Remote Gambling Association (RGA) [Last Updated On: December 16th, 2016] [Originally Added On: December 16th, 2016]
- Gambling - The New York Times [Last Updated On: December 23rd, 2016] [Originally Added On: December 23rd, 2016]
- Hard Rock Casino proposal announced for Meadowlands [Originally Added On: December 26th, 2016]
- Trusted Online Gambling Sites Since 1996 - Online.Gambling.org [Last Updated On: January 6th, 2017] [Originally Added On: January 6th, 2017]
- One of the biggest gambling days of the year: Super Bowl Sunday brings big temptation for gambling addicts - fox6now.com [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Famous YouTube FIFA gamer fined for gambling offences - Goal.com [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Gambling Stock Roundup: Macau Sales Rise Again in January, Nevada Records a Drop in December - Yahoo Finance [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Carryout owner facing gambling house charges - Lima Ohio [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Crackdown on illegal gambling in the Philippines now underway - GamingTodaySlotsToday [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Problem Gambling Researchers Know Issue All Too Well - KNPR [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Military should screen for gambling disorder, GAO says - Virginian-Pilot [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Gambling with people's autonomy - Spiked [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- YouTuber admits Fifa gambling offences - BBC News [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Older gamblers face worse odds for addiction - Times Herald-Record [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Bill introduced to lower age for legal gambling in Nevada - Las Vegas Review-Journal [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Dangers of sports gambling - Daily Sundial [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Military Should Screen for Gambling Problems, says Government Report - Casino.Org News [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Gambling inquiry: Pokies no different than going to the movies, hospitality group says - ABC Online [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- GAO report recommends military members be screened for ... - wtkr.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- How to Handle Gambling Wins and Losses This Tax Season - TheStreet.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- FIFA gaming YouTuber faces huge fine after pleading guilty to gambling charges - Digital Trends [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- The Newest Challenge in Gambling: Finding Growth - Motley Fool [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Federal oversight agency wants the military to screen for gambling addiction - Military Times [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Gambling and plastic politics - San Diego Reader [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Is gambling 'good for Gearhart'? - Daily Astorian [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Super Bowl Betting Tally Helps Make the Case for Legalized Sports Gambling - TheStreet.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Idaho House panel introduces bill limiting Indian gambling - Virginian-Pilot [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- MLB commissioner admits the league is rethinking its stance on gambling - FOXSports.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- YouTubers fined for running illegal FIFA 17 gambling site - Ars Technica [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Proposal to lower legal gambling age gets cold reception from gaming industry - News3LV [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- South Australia's gambling tax highlights the regulatory mess of online betting - The Conversation AU [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- MLB Commish Opens Door to Legalized Gambling: 'We Are Reexamining Our Stance' - Mediaite [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Kenyan youth splashing cash on looks, gambling Geopoll study - Nairobi News (satire) (press release) (blog) [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- No truth to alleged link between missing Spencerport teen, illegal gambling - 13WHAM-TV [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Gamblers caught in Hat Yai open-air casino bust - Bangkok Post [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Idaho House Panel Introduces Bill Limiting Indian Gambling | Boise ... - Boise State Public Radio [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Duterte orders war on illegal gambling - Philippine Star [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- OUR VIEW: Transparency needed in gambling operations - Pacific Daily News [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Rob Manfred may change MLB's stance on gambling - SB Nation [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Kenya: Gambling in Kenya Gets Out of Hand - AllAfrica.com [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- The world's biggest gamblers - The Economist (blog) [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Gambling Responsibly - New York Times [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Do you have a mobile gambling/gaming problem? - KMTV [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Worldwide Gambling Win Totaled $385 Billion in 2016, Australia Biggest Loser - Casino.Org News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- New York State transformation into the gambling big leagues nearly ... - The Daily Freeman [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Palace: Duterte won't hesitate to remove officials protecting gambling lords - Philippine Star [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- UFC 208 odds, gambling guide - MMA Fighting [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Vote down gambling - The Augusta Chronicle [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Casino gambling in Texas: Probably not this session, says lawmaker - LubbockOnline.com [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Calendar urges gamblers to cut their losses l Dayton, Ohio - Dayton Daily News [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- AFL: Geelong's Harry Taylor questions 'worrying' effects of gambling advertising on children - ABC Online [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Football's gambling problem: You better, you better, you bet - Football365.com [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- States are gambling with law enforcement safety | TheHill - The Hill (blog) [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Scary graph shows how Australians are the biggest losers - NEWS.com.au [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Last holdout Lakewood to vote on repealing video gambling ban - Northwest Herald [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]