When it comes to generating passive income, it’s hard to beat the stock market. Prices may go down sometimes. But over time, the prices of stocks from good companies grow consistently.
Although you can invest in a wide range of companies, this guide focuses on casino stocks. To learn how to find great gambling stocks, continue reading this guide.
Learn The Different Ways You Can Invest In Stocks
There are three major ways to invest in the stock market. Buy individual stocks, invest in index funds, or work with robo advisors. There's no right or wrong way to invest.
But the method you choose depends on a few factors. For example, do you like to do research? Are you a busy person with no time to study the stock market? What’s your stance on risk-taking?
If you like to do research, consider picking individual stocks. The benefit is that great stocks can skyrocket tremendously and make you more money than index funds.
Speaking of which, most experts recommend index funds to beginner investors. With an index fund, you spread the risk amongst multiple companies. This way, you don’t have to lose a lot of money if one stock crashes.
Robo investing involves the use of a computer to select stocks for you. It's a great idea for people with little time to study the market. The algorithm considers your age, budget, risk tolerance, and other factors to determine where to best invest your money.
Create A Budget
The stock market is no place to invest money you will need in the next few weeks or months. Prices go down all the time. And when this happens, it can take months or years to get back in profit.
Against that backdrop, select your investment budget wisely. Create an emergency fund. Pay your bills and debts. If you have plans to go for a vacation, set money for that purpose aside.
Basically, think of all the ways you plan to spend your money in the next twelve months. Set money aside for significant projects like a house downpayment, upgrading your car, or starting a new business. If you still have spare money, invest it in the stock market.
Buy casino stocks fully aware that you might not make profits in the short term. Of course, there’s a chance you could buy shares in a company at the right time. But more often than not, patience is needed to make money in stocks.
Create An Investment Account
Learning how to invest in casino stocks won’t do you any good if you have no way to invest your money. Shop around for a good investment broker and create an account.
Consider the trading fees, security, reputation, availability of gambling stocks, and mobile support when choosing an account. In case you're wondering, Robinhood, Webull, E*TRADE, and Fidelity are some of the best stock brokers in the world.
Besides choosing a broker, consider the type of account that best suits your investing needs. A standard brokerage account lets you invest in individual stocks, mutual funds, and ETFs. Additionally, it lets you access your money conveniently.
If you want to invest for retirement, consider an IRA—Individual Retirement Account. You will benefit from lower taxes. But on the downside, you must wait for years before you can access your money.
Select The Best Gambling Stocks
Now that you’ve chosen a stock broker, the next step is to decide which companies to invest in. Buy shares from companies you trust. Avoid penny stocks or stocks likely to fluctuate too much.
Importantly, diversify your money. Buy shares in a few well-known gambling brands. Then invest more money in upcoming companies. Alternatively, put your money in an ETF or mutual trust fund.
It can be tempting to invest all your money in high-growth companies. But keep in mind no company whose shares will surge forever. This is why diversification is necessary. It protects you from market uncertainties.
That being said, below are some of the best gambling stocks to look out for.
Flutter Entertainment
Flutter Entertainment is the company behind FanDuel, Paddy Power, Betfair, and PokerStars. For the uninitiated, FanDuel is one of the most dominant sportsbooks in the US.
PokerStars ranks amongst the best poker sites in the world. On the other hand, Paddy Power and Betfair dominate the UK and Irish markets. In other words, Flutter Entertainment is a rock-solid company.
It’s one of the companies to keep in mind if you want to invest in an established casino stock.
DraftKings
DraftKings is FanDuel’s biggest competitor in the US. It dominates 25% of the country’s sports betting market. It operates in more than 20 states—jurisdictions that already permit legal betting.
With time, the company will likely expand in more states. It’s also considering entering the Canadian market: Canada legalized single-event betting in 2021. Since then, provinces can make laws to commercialize the industry. To find more trustworthy online casinos in Canada to invest in, refer to the casino brands listed on Bestcasinosites.net.
Scientific Games Corporation
As legal online gambling increases in the US, so will the demand for casino software. Scientific Games specializes in creating slot machines and table games for online casinos around the world.
The company is valued at more than $5 billion and generates roughly $2 billion in revenue per year. Experts expect the business to grow significantly in the next decade.
MGM Resorts
MGM Resorts is an established gambling brand in the US. Traditionally, MGM used to buy brick-and-mortar casinos in Las Vegas and Atlantic City. Lately, it's been launching gambling sites left, right, and center.
Entain PLC
So far, we’ve mentioned popular gambling stocks in the US. But guess what? The UK iGaming industry has been around much longer. And some of the stocks in Britain have been performing tremendously in the last few years.
Entain PLC is a good example. This company runs popular gambling brands like Party Poker, Bwin, Coral, and Ladbrokes. In 2021, the brand's stock surged by 300%. It has since experienced a market correction like most stocks. But it's a stock you should watch out for once the bear market is over.