A recent report shared that the global casino gaming market will grow in the coming years. From $131100 million in 2020, experts predict that the market size will reach $191620 million by 2027, at a CAGR of 5.5% from 2021 to 2027. According to the same report, the increasing popularity of social gaming applications, which are accessible using smartphones, is one of the major factors why the industry is growing at such an unbelievable pace.
But apart from recent developments in casino gaming applications, changes in consumer trends and government regulations can also potentially propel the global gaming industry to new heights in the near future.
Why Are Casino Stock Prices Rising?
The city of Macau in Hong Kong is one of the biggest casino cities in the world. Recently, the local government approved the new gaming law bill that authorizes the issuance of new casino licenses to the six Macau casino operators, which are all due to expire this year. This is good news for casino executives, investors, and analysts since it means companies can continue to conduct transactions in the city.
Apart from acquiring new business permits, this news caused casino operators to experience a massive increase in share values. Las Vegas Sands, MGM Resorts, Wynn Resorts, and Melco Resorts climbed between 4% and 13%, leading gains among S&P 500 components. As the future of the casino industry in the world’s casino capital is secured, investors are now more willing to invest in casino companies, causing the demand and stock prices to increase as well.
Licensing permits for casino businesses is not the only reason behind rising casino stock prices. Today, more casinos are already accepting Bitcoin and other cryptocurrencies for online casino games, with some websites operating solely on crypto. Because of the increased use of cryptocurrency in online poker games, more players can legally play poker online while also swaying the decision of lawmakers to make online poker legal nationwide. This is possible because of the decentralized nature of these digital currencies.
Cryptocurrency can be an easier way to fund online poker accounts since digital currency can be acquired online through exchanges or authorized applications without the intervention of traditional banks. If banks are bypassed when funding an online poker account, this could potentially increase the number of poker players online because it’s hassle-free. From the perspective of casino operators, the widespread use of cryptocurrencies may also encourage lawmakers to legalize online poker sites in the US, allowing them to expand business operations and attract investors.
Should You Invest in Casino Stocks?
Casino stocks have generally been a safe investment over the past few years. As the casino gaming industry continues to grow, you might be interested in investing in casino stocks as a form of passive income.
When buying stocks, you should know which company you want to invest in and study their current market standing. Numerous sites can help you keep track of companies with real-time financial data updates and objective market analyses. It doesn’t matter if they’re a small, private, or large corporation. What’s important is that you know which companies are worth investing in. Lastly, remember that no matter how solid a stock pick is, it’s always susceptible to market risk. It means your initial investment can lose its value when the broad market takes a downturn, and casino stock prices are no exception. If you’re investing in casino stocks, don’t rush and take your time to do extensive research on the company.