888 and L&W bi-weekly & yearly figures are in the green, while Evolution stays green for the year but dips into the red yet again for its bi-weekly figures. As for Entain & Playtech, both are in the red bi-weekly and yearly! (Image by Pabitra Kaity at Pixabay.com)
The multibillion-dollar iGaming industry is evolving at an exponential rate.
Technology is driving this evolution, and security is a critical factor in play when assessing the industry. The challenge for the industry is protecting personal online data when online gambling is exploding and “data is king.”
This conundrum, expansion and protection, will be the main focus of all companies moving forward if they are to succeed.
All online websites request detailed personal information from their customers. If this falls into the hands of hackers, the customer is open to account fraud (access to funds), identity fraud and AI bots (account access). These scenarios hurt the company, and customers will lose confidence in the industry because they aren’t adequately protected.
Plus, online companies have large risk management departments that try to stay ahead of suspicious activities. These activities are analysed and ranked in order of potential threats, tackling the most severe immediately and less minor accordingly.
The industry has very technical automated risk computer programs, but hackers also have access to these programs, and it is a continuous cat-and-mouse game. While the industry relies on technology to weed out fraud/threats, it is much faster than relying on humans.
Disclaimer: This report is here to keep track of prices and not for trading. We do not offer trading advice. If you would like to keep track of past prices, check out the previous report here – Issue 16 – iGaming Stocks Update.
Evolution (EVO) – NASDAQ Stockholm – SEK
After posting poor Q2 results last month, Evolution’s share price has tumbled and continues to hit 6-month lows. The company is still in positive territory for 2023, up 13%, but is struggling to regain those losses. This has not scared off institutional investors, though… as 48% of the stock is owned by large institutions, and confidence in EVO remains high. The stock price is down 5% in the last 2 weeks but opened up at the time of writing and is trading at 1,182 SEK, with resistance at 1,114 SEK and fragile support at 1,159 SEK.
- Current: 1,182 SEK
- 9 August: 1,255.80 SEK
- 14-Day Gain/Loss: -73.80 SEK (-5.88%)
- 2023 Market Open: 1,050.50 SEK
- Yearly Gain/Loss: +131.50 SEK
- Yearly (%) Movement: +12.53%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
Entain share price has plummeted since it came to light 2 months ago that it was under a bribery investigation in Turkey by the HMRC. The company was previously called GVC and has tried to distance itself from its former name and executives. After engaging in settlement talks with HMRC, ENT expected a substantial fine, and it put aside £300 but has now increased that figure to a provisional £585m (paid over 4 years). While the company boasted increased profits last week, the UK online revenue was down 2% and attributes this to government safer gambling measures and the associated costs of adhering to the new legislation.
ENT is down almost 7% since the last report, broke through the psychological support level of 1,171GBX, and is expected to hit new lows. Investors are awaiting the judicial decision on the fine amount, but it appears that the company’s share price will continue to drop.
- Current: 1,166.75 GBX
- 9 August: 1,390 GBX
- 14-Day Gain/Loss: -223.25 GBX (-16.06%)
- 2023 Market Open: 1,350.50 GBX
- Yearly Gain/Loss: -183.75 GBX
- Yearly (%) Movement: -13.60%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
Playtech continues to sign partnerships and release innovative games, but this has not improved their share price. The embattled company’s stock has fallen since May after hitting a yearly high of 640 GBX, a 20% decline. The stock has dropped almost 7% in the last 2 weeks and is currently trading at 516.22 GBX. PTEC has resistance at 514.46 GBX and support at 508 GBX. If the stock pushes through this support level, it will hit lower lows and continue to fall as the bears stay in control.
- Current: 516.22 GBX
- 9 August: 548.00 GBX
- 14-Day Gain/Loss: -31.78 GBX (-5.80%)
- 2023 Market Open: 536.00 GBX
- Yearly Gain/Loss: -19.78 GBX
- Yearly (%) Movement: -3.69%
Light & Wonder (LNW) – NASDAQ NYC – USD
LNW beat Q2 EPS estimates 2 weeks ago, and the share price is up almost 4% as they posted substantial revenues. The company completed the acquisition last week, which will enhance its web platforms and the development of digital games. The purchase paid quick dividends as the New Zealand national lottery has named SciPlay the sole system technology provider for the next 7 years. This contract will include a games library, digital/retail lottery system and upgraded technology for retail terminals. SciPlay has a similar agreement with the national Latvian lottery as well. The share price of LNW is up almost 4% in the last 2 weeks and is currently trading at USD 73.84. The stock is trading just below a yearly high of $76.43, which was realised on August 14th.
- Current: 73.84 USD
- 9 August: 71.78 USD
- 14-Day Gain/Loss: +2.06 USD (+2.87%)
- 2023 Market Open: 58.12 USD
- Yearly Gain/Loss: +15.72 USD
- Yearly (%) Movement: +27.05%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
888 appears to be turning its misfortunes around, and the stock continues to creep up. After the Middle East money laundering scandal at the start of the year, 888 initiated restructuring the executive board and streamlining the business. Last week the company reported mixed H1 results, with an increase in overall revenue growth of 165% but lower profits. Their consequential tax bill diminished this exemplary result, which reduced yield to £11.7m. The company expects strong Q3 growth from subsidiary William Hill, where the online operator controls 15% of the UK market. 888 is up almost 6% since the last report and is currently trading at 119.50 GBX, with resistance at 123.80 GBX and support at 116 GBX.
- Current: 119.50 GBX
- 9 August: 110.80 GBX
- 14-Day Gain/Loss: +8.70 GBX (+7.85%)
- 2023 Market Open: 88.05 GBX
- Yearly Gain/Loss: +31.45 GBX
- Yearly (%) Movement: +35.71%
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