While ENT:L and PTEC:L are down on 2023’s open, L&W, EVO, 888:L remain in the green in this week’s iGaming Stocks Update Issue 19 2023. (Image by Pabitra Kaity at Pixabay.com)
The most troubling news coming out of the iGaming industry, other than the stock market in general, which is very flat, is the cyber-attack on two of the biggest gambling companies in the world.
MGM Resorts and Ceasars Entertainment came under attack around September 7th, but news of the cyber-attack was slow as the companies didn’t want the public to know their security systems had been breached.
Many of the services provided by the casinos were not available to guests, such as on location ATM/credit card transactions, bookings had to be processed through a 3rd party, room checkouts couldn’t be made, room keys/phones didn’t work, and slot machines and other online based games were offline.
A group called Scattered Spider, also known as UNC3944 has claimed responsibility for the security breach and said that 6 terabytes of data had been taken. This sensitive information included driver’s license information and social security numbers, and the ransomware group has been linked to over 100 attacks in various industries.
Ceasars has reported paying out USD 15m in ransom to the hackers after initially demanding USD 30m, most of which will be covered by insurance policies. The company doesn’t expect this ransom payment to affect its year-end bottom line. MGM is still negotiating with cyber hackers and is losing up to USD 8.4 million daily because their computer systems are still down. By upgrading their security technology, the iGaming industry firms must stay ahead of the ransomware groups. This event is a wake-up call for the iGaming industry, and companies will set aside more of their profits to invest in future cybersecurity measures.
The report will catch up on Playtech, Entain, 888 Holdings, Evolution and Light & Wonder to see how they have faired in the last few weeks.
Disclaimer: Please do not use this report for investment advice. We are not experts on the financial industry or stocks. This report is here for iGaming fans that want to see how brands in the gambling industry are performing financially. For the previous report please see Issue 18 – iGaming Stocks Update.
Evolution (EVO) – NASDAQ Stockholm – SEK
Evolution has remained relatively flat since the last report, after a slight pop in the share price a few days ago. The company is up an impressive 44% in the last year and 13% since January. After hitting a yearly high last June of 1,469 SEK, it has slowly come off and is currently trading at 1,190 SEK. Market analysts still have a positive outlook on this stock because it has outperformed other companies in its sector. The current support level is 1,176 SEK and strong resistance at 1,216 SEK.
- Current: 1,190 SEK
- 5 September: 1,194.60 SEK
- 14-Day Gain/Loss: -4.60 SEK (-0.39%)
- 2023 Market Open: 1,050.50 SEK
- Yearly Gain/Loss: +139.50 SEK
- Yearly (%) Movement: +13.23%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
Entain share price has dropped considerably since January, falling almost 18%. Investors were not impressed with their Q2 earnings and their year-end forecast. The average daily trading volume is around 4m shares but has dropped to 900k, currently trading at 1,109 GBX. The company is close to an all-time low of 1,045 GBX and is approaching the critical support level of 1,088 GBX. If the stock reaches this support level, the stock may continue to push down. Analysts are mixed regarding ENT, with some believing that the stock may be good value at this price, while others state that future EPS forecasts will not be achievable.
- Current: 1,109 GBX
- 5 September: 1,165.44 GBX
- 14-Day Gain/Loss: -56.44 GBX (-4.84%)
- 2023 Market Open: 1,350.50 GBX
- Yearly Gain/Loss: -241.50 GBX
- Yearly (%) Movement: -17.91%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
Since the last report 2 weeks ago, PTEC has pushed downward through the critical support level of 524 GBX, shedding another 6%. While the stock is still off a yearly low of 360 GBX, analysts believe that Playtech is still in a bearish trend and could go as low as 400 GBX. The stock opened down today and is at a new yearly low of 491.40 GBX.
- Current: 491.40 GBX
- 15 September: 527.04 GBX
- 14-Day Gain/Loss: -35.64 GBX (-6.77%)
- 2023 Market Open: 536.00 GBX
- Yearly Gain/Loss: -44.60 GBX
- Yearly (%) Movement: -8.32%
Light & Wonder (LNW) – NASDAQ NYC – USD
Light & Wonder is up marginally in the last 2 weeks and is currently trading at USD 77.90. The iGaming equipment manufacturer has benefited from the growth in the industry and partnerships with large global firms. The stock has gained 5.5% in the last month, outperforming the 3 U.S. stock indices and most stocks in the LNW sector. Market analysts continue to support LNW as the stock hit a yearly high of USD 79 last week and is not far off an all-time high of USD 86.11.
- Current: 77.90 USD
- 5 September: 75.84 USD
- 14-Day Gain/Loss: +2.06 USD (2.72%)
- 2023 Market Open: 58.12 USD
- Yearly Gain/Loss: +19.78 USD
- Yearly (%) Movement: +34.01%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
888 Holdings has had a great run in the last few weeks, hitting a yearly high of 133 GBX on September 4th, up 10% since the last report. The stock is currently trading at 117.86 GBX, coming off due to industry pressure and low trading volumes. On the bright side, the company has hired a new CFO, Sean Wilkins, who has an impressive resume of working as a CFO for large retail companies and in the iGaming industry. The new hire is expected to focus on streamlining William Hill and other possible acquisitions.
- Current: 117.86 GBX
- 5 September: 128.79 GBX
- 14-Day Gain/Loss: -10.93 GBX (-8.49%)
- 2023 Market Open: 88.05 GBX
- Yearly Gain/Loss: 29.81 GBX
- Yearly (%) Movement: +33.85%
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