A slow start to 2024 for iGaming share prices – EVO (-2.09%), ENT:L (06.64%), PTEC:L (-4.58%), LNW (+0.4%) and 888:L (-10.77%). (Image by Pabitra Kaity at Pixabay.com)
While online gambling across Europe, Oceania, South Africa, and North America focuses on fair play and player protection to create fun live casino sites, Southeast Asia has come under scrutiny as the new centre for fraud and money laundering.
With many of the companies in this iGaming stocks update involved in Asia, news of SEA’s unsafe gambling market may have had a marginal downward effect on stocks. However, where there is room for improvement, it could mean an increase in price later down the line.
The UN focused resources on cleaning up Macau in 2019, but the illegal activities have spread throughout SEA to lesser-known countries. According to a recent United Nations report, the casino industry in Southeast Asia has developed into a hub for criminal activity, such as cyber fraud and massive money laundering.
The region’s growing casino industry has created a criminal ecosystem encouraging organized crime networks to use the area as a money laundering conduit. The illegal profits are frequently the result of online frauds, like “pig-butchering” schemes, in which con artists build rapport with their targets and convince them to make false financial investments.
The report emphasizes that casinos located in lawless regions of nations such as Laos and Myanmar are frequently the starting point for these scams. These areas are thought to have been the site of hundreds of thousands of human trafficking cases, where scammers coerce people into committing telecom fraud.
According to a regional representative for Southeast Asia and the Pacific at the United Nations Office on Drugs and Crime (UNODC), the acceleration of globalized crime networks centring in the Golden Triangle has been aided by technology that has dramatically expanded criminal revenue streams. The development of systems and infrastructure capable of moving and laundering massive volumes of local currencies and cryptocurrencies is forcing a revolution in the regional structure of underground banking.
Using casinos to launder money from organized crime in SEA is not new. The report states that many Philippine-based casinos were implicated in the money laundering of about $81 million that was allegedly taken from Bangladesh Bank by North Korea’s Lazarus hacking group.
The industry has grown significantly in the last few years, exhibiting “exponential growth” after the UNODC launched a crackdown on Macau’s gambling sector in 2019. The report states that as of early 2022, there were more than 340 land-based casinos. The shift to cyber fraud operations gained prominence when the pandemic forced many casinos to modify their operations.
Citing technological tools that facilitate the establishment of online gambling operations, the report underscores the role that online casinos play in money laundering. Online gambling platforms have become a popular vehicle for cryptocurrency-based money laundering, thanks in part to the use of cryptocurrencies, mirror websites and white-label service providers. According to the report, Tether (USDT) is the preferred cryptocurrency for cyber fraud because of its dependability, user-friendliness, anonymity and inexpensive fees.
The report also covers the successful rebel offensive in the Kokang region, which resulted in the arrest and repatriation of thousands of individuals involved in the industry and China’s crackdown on cross-border cybercriminal operations in Myanmar. Despite these precautions, organized crime groups engaged in cybercrime have shown flexibility in relocating their activities quickly and efficiently.
Disclaimer: For sound financial advice on whether iGaming stocks are worth investing, please seek the help of proffesional traders and financial advisors. Livecasinocenreal only reports on the latest prices. We do not give investment advice – iGaming Stocks Update Issue 1 2024.
Evolution (EVO) – NASDAQ Stockholm – SEK
While Evolution’s peers have suffered share price declines, EVO has held up remarkably well in last year’s volatile market. The company was relatively flat for 2023, up 3.29%. Market analysts’ consensus is that EVO is undervalued, and most have a buy on the company. The company trades at 1,192 SEK, with strong resistance at 1,202 SEK and support at 1,154 SEK.
- Current: 1,192 SEK
- 7 January 2024: 1,156 SEK
- 15-Day Gain/Loss: -36 SEK (-3.03%)
- 2024 Market Open: 1,217.40 SEK
- Yearly Gain/Loss (2024 Market Open): -25.40 SEK
- Yearly (%) Movement: -2.09%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
Entain had its share of problems in 2023, a bribery probe that forced the CEO to step down after a £585m fine was paid, misses on earnings reports, and a recent downgrade by Goldman Sachs. In the last 3 years, under the previous CEO, ENT lost 35% of its value and is down 6.6% since the beginning of January. The share price is currently trading at 920 GBX and appears to be in a downward trend.
- Current: 920 GBX
- 7 January 2024: 973.80 GBX
- 15-Day Gain/Loss: -53.80 GBX (-5.53%)
- 2024 Market Open: 985.40 GBX
- Yearly Gain/Loss (2024 Market Open): -65.40 GBX
- Yearly (%) Movement: -6.64%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
Playtech has struggled since last May, when the share price started a bearish run, declining 31%. In 2023, the company struggled with court cases, a CEO resignation, fines and poor earnings reports. A recent UK news article has stated the PTEC may have been a target of multi-year corporate espionage. A former employee of PTEC moved to OnAir Entertainment and allegedly still had logins to confidential information on technology, files and games. The former employee may have stolen private data to aid his new company. PTEC is investigating these claims and stated that authorities will question the person involved in the coming weeks. The stock is trading at 425 GBX with weak support at 411 GBX and resistance at 453 GBX.
- Current: 425 GBX
- 7 January 2024: 432.60 GBX
- 15-Day Gain/Loss: -7.60 GBX (-1.75%)
- 2024 Market Open: 445.40 GBX
- Yearly Gain/Loss (2024 Market Open): -20.40 GBX
- Yearly (%) Movement: -4.58%
Light & Wonder (LNW) – NASDAQ NYC – USD
Light and Wonder has experienced double-digit growth in the last few months (over 10%), outperforming all other companies in its sector. Market analysts believe the mid-cap company is undervalued at its current trading value of USD 81.89; some have put a target of USD 114 in H1. The company will release 2023 Q4/year-end results on February 27th, and the financial data is expected to be positive.
- Current: 81.89
- 7 January 2024: 77.60 USD
- 15-Day Gain/Loss: -4.29 USD (-5.54%)
- 2024 Market Open: 81.56 USD
- Yearly Gain/Loss (2024 Market Open): +0.33 USD
- Yearly (%) Movement: +0.4%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
888 Holdings released a statement last week that stated it expects 2024 profits to be at the low end of market expectations. This will be a year-on-year fall in 4th quarter revenue (-8% to £1.7b). To compound future company performance, a major partner, DraftKings, abandoned their deal in the UK as the regulatory commission could cancel their license. The share price 888 Holdings is trading at is 81.20 GBX, down 11% since the start of the year.
- Current: 81.20 GBX
- 7 January 2024: 86.75 GBX
- 15-Day Gain/Loss: -5.55 GBX (-6.39%)
- 2024 Market Open: 91.00 GBX
- Yearly Gain/Loss (2024 Market Open): -9.80 GBX
- Yearly (%) Movement: -10.77%
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