Going All-In: Is investing in Online Gambling Worth It
Casino stocks are among the hardest hit since the pandemic. And it comes as no surprise why - investors from all walks of life can now easily place bets online, confer with a number of experienced brokers, and even delve through lots of markets and assets thanks to the Internet.
There is a plethora of markets with potential growth available. A good example of such a market that is gaining a lot of notoriety lately is online gambling – a billion-dollar industry with a great number of providers popping up daily. Playing poker and slots online has quickly become a favourite pastime of many.
As an investor, you are probably already aware of the potential success of this market. And, most likely, you have heard someone say," Investing in the stock market is just like gambling at the casino"? While it might be true, gambling and investing both involve risk and choice – more precisely, the risk of capital with the hope of tomorrow's profit. On the other hand, gambling is typically a momentary activity, while equities investing can last a lifetime. What's more, there is a risk expected return to bidders, on average and over the long run. But investing in the stock market can also carry with it a positive expected return on average over the long run.
Gambling vs. Investing: Key Differences
In both investing and gambling, a key principle is to reduce risk while increasing profits. However, when it comes to gambling, the agency always has an edge - a mathematical plus over the player that grows the longer they play. On the other hand, the stock market is constantly appreciating over the long term. That doesn't necessarily mean that the bettor will never hit the jackpot, and it also doesn't mean that a stock investor will always relish a positive return. A with everything that implies investing – time means money. If you keep playing, the odds will be in your favor, but not as a gambler but as an investor.
- The Time Factor
Another key difference between these two activities has to do with the idea of time. An investment in a company can last several years, while gambling is a time-bound event. When you gamble, once the race or hand or game is over, your opportunity to profit from your wager has come and gone. It's as simple as that: you either have lost or won your capital.
Meanwhile, stock investing can be time-rewarding. Those who invest purchase shares in companies that pay extras and are actually rewarded for their risked dollars. Companies can pay you more regardless of what will happen to your risk capital, as long as you hold onto their stocks. Experienced investors realize that returns from extra or dividends are a key factor in making money in stock over the long term.
Global Online Gambling Market Reports 67% Increase
The global online casino market was valued at US$44.327 billion last year and is expected to reach its highest peak of US$66.994 billion in 2025.
The success of betting across different countries is considerably driving the global online market – the adoption of smartphones coupled with fast internet connectivity across various regions/countries is encouraging its success across multiple gambling platforms. With companies now offering gaming bonuses on your mobile, the number of gamers engaged in various types of online gambling is growing at a considerable pace, which, in turn, is enhancing the growth of the global online gambling market.
The mounting number of affordable mobile applications to play different online gambling games on smartphones is also a contributory factor to the market growth of the online game blind industry. Today's is easier than ever to bet on your favorite sports using portable devices such as laptops, smartphones, and tablets, so it's no wonder why the number of players in the online gambling industry keeps rising.
What's more, the propagation of sports betting along with a plethora of gambling ads is further attracting hard hitters to try online gambling, thus positively impacting the growth of the market. Online companies, networks, third-party ad servers and exchanges are used to promote different companies' gambling websites. Virtual gambling service providers enter into agreements with players or individual customers to offer betting services for real money, which is leading to more and more gamblers allowed, have stringent and restricted regulations, which further hinders the expansion of this overall online gambling world.
Diversity and Unlimited Growth
A smart investor must know where the market is headed. So why would you invest in a market that is headed for the dumps? The same goes for online casinos. Why invest in a casino that has already touched its peak unless you have some smart marketing plans that will change the image of the agency.
With that in mind, you should be aware of the fact that it is difficult for a certain casino to succeed in today's ever competing market, but the gambling industry as a whole isn't going anywhere. The online gambling industry's future looks pretty good, and the experts only predict a positive growth potential.
As an entrepreneur or investor, there is a good chance that you have heard about diversifying your portfolio to avoid risk or reduce loss. The concept is that when you face a loss in one market, the earning in the other markets will make up for the loss. In this scenario, the old saying "Don't put all your eggs in one basket" can be annoyingly true. While online gambling can be a billion-dollar industry, it's still somewhat of a new concept.
One of the best reasons more and more people are investing in the online gambling industry is that there will always be an unlimited number of options. As we've previously mentioned, the online providers are literally popping up daily, and it is only helping the market grow. What's more, an endless amount of options to choose from can only mean good news as you can easily and quickly find trustworthy investment opportunities with review sites.