It’s not often that we cite a finance article as the source for of one of our blogs. But in this instance, The Motley Fool may be on to something. A recent market expose on their site highlighted a dramatic increase in share prices for online gambling companies. So what does that mean to us? That betting addictions could most certainly be on the rise.
One of the companies that appears to be “soaring” right now is Draft Kings. We’ve certainly mentioned this site before and the ease they provide when it comes to betting money. Flutter Entertainment was another business that is doing quite well in the market. One of their big brands is Poker Stars, which lets people spend money on Texas Hold ‘Em tournaments.
The trend here is that people with an itch to gamble can now get their fixes online. COVID-19 has famously shut down lots of brick and mortar locations; which include casinos throughout the United States. To us, that was actually a silver lining amid the quarantining; giving people less opportunity to walk into a resort and bet their life savings away.
But online gambling certainly changes the game on that. Now people in need of a betting fix can simply turn on their laptop and provide a credit card number. These sites take millions of dollars away from people on an annual basis. And the scary thing is, more new customers may be arriving as compulsions and boredom drive them to visit these sites.
Motley Fool writer Travis Hoium broke down the situation quite well. From his perspective, investing in these companies is a win because of the great success he’s seeing. Hoium also correctly mentioned that regulations could soon be lifted for more online gambling, to help boost the economy.
“Rising stock prices have been driven by stronger-than-expected online play during the pandemic,” Hoium writes. “And there is a lot of speculation that budget shortfalls in states across the country will open up online gambling.”
Interestingly, the Motley Fool article speculates that many other big casino players could soon be entering the online gambling market. With closures all across Las Vegas, don’t be surprised to see brands like MGM Grand and Caesar’s Palace having a bigger internet presence.
We definitely want to make ourselves available to anyone struggling with a gambling issue. Please reach out if you feel you need help.