Investment Analysts Predict Online Gambling Will Be Profitable in Several Years

Posted By PlayNJ Staff on June 18, 2014 - Last Updated on February 8, 2021

Online gambling has returned to the United States. Three states have legalized online gambling over the past year, while others are considering passing similar legislation in the near future. However, the industry is growing more slowly than most experts would like. Many financial advisors have advised their clients to wait a few years before purchasing stock in online gambling companies.

James Brumley, a former stock broker that writes for InvestPlace, said that many people invested in companies with a stake in online gambling. They hoped that substantial online gambling revenues would cause the stocks to surge over the past year.

However, their expectations were overly optimistic. Zynga’s stock have increased much less than many investors hoped. Body Gaming’s stock price has been essentially unchanged over the past year. Caesar’s Entertainment may be the only company that has benefited from the legalization of online gambling. The company’s share price has increased nearly 40% over the past year. However, some analysts argue that only a small part of the increase can be attributed to the company’s success in Nevada and New Jersey’s online gambling markets.

While the market’s gambling revenue has grown more slowly than experts hoped, Brumley and other analysts argue that online gambling is still a good long-term bet. California and several other states are planning to introduce legislation to legalize online gambling in the near future.

Brumley also pointed out that a new merger between Amaya Gaming and the Rational Group could be a huge opportunity for the U.S. online gambling market. The new merger could allow PokerStars and Full Tilt Poker gain access to the U.S. regulated online gambling market. This could drive industry growth and spur other states to legalize online gambling. However, Brumley still feels that investors should be conservative with their estimates.

PlayNJ Staff Avatar
Written by
PlayNJ Staff

NJ online casino news and online gambling promos from the writers of PlayNJ.com.

View all posts by PlayNJ Staff
Privacy Policy