Yearly stock price movements since the 2023 market open show ENT (-33.91%), EVO (-2.33%), PTEC (-22.54%), L&W (+48.79%), and 888 (-11.52%). (Image by Pabitra Kaity at Pixabay.com)
The iGaming industry has taken a lot of criticism for promoting gambling as a socially acceptable behaviour. Through advertising and public discourse, gambling has become part of the fabric of society. While gambling is generally associated with the dark side of sports, betting/gambling has moved into the spotlight as a revenue generator for governments and associated groups/companies.
The main purpose of legalizing gambling is to generate tax revenues. Governments permit businesses and enterprises to offer their goods and services inside their borders. In return, the government demands that the developers give up a certain percentage of their total income. In line with previous trends, legalized gaming has produced substantial profits. The gambling business currently pays taxes to the governments that have legalized gaming and casinos.
Another major factor is job creation. The gambling industry creates job opportunities through physical casinos and online gaming. This has a knock-on effect on land-based businesses – hotels, casino staff, operators, retailers, etc. The online sector provides jobs for game designers, content providers, website developers, graphic designers, and cyber security… the list is endless.
The above elements support the economic expansion of nations that allow gambling. Numerous industries have joined forces with the gaming sector to collaborate for increased revenue. Joining larger groupings allows individuals to profit from small businesses and employees near casinos. Numerous governments are aware of the advantages of allowing both online and physical gambling in their nations. As the industry gains more traction globally and improves safeguards to protect gamblers, governments will embrace the benefits of supporting/regulating gambling in their jurisdictions.
This week, the report will look at the price movements of Playtech, Entain, 888 Holdings, Evolution and Light & Wonder and where they may be headed.
Disclaimer: If you want to trade iGaming stocks, then please visit a financial advisor or a website portal with specialists on the topic of investment as we are not financial experts – also for the previous version of this report 2 weeks go, please visit Issue 22 – iGaming Stocks Update.
Evolution (EVO) – NASDAQ Stockholm – SEK
Evolution has gained some of its losses after posting positive earnings last month. The stock price has increased almost 4% since releasing the data but is still down 25% after hitting a yearly high of 1,469 SEK last June. Institutional investors own 46% of Evolution and may choose to sell EVO to cut their losses. These ‘market movers’ could move to push EVO down even further, negatively affecting individual investors. It seems odd that the number one company in live dealer games could face such issues with its stock prices. Especially when considering Evolution has won 7 industry awards this year, with the latest honours picked up at the SBC Awards Latinoamérica 2023 and EGR Italy Awards 2023. The share price currently trades at 1,026 SEK with resistance at 1,073 SEK and supports 998 SEK.
- Current: 1,026 SEK
- 31 October: 1.005.40 SEK
- 14-Day Gain/Loss: +20.60 SEK (+2.05%)
- 2023 Market Open: 1,050.50 SEK
- Yearly Gain/Loss: -24.50 SEK
- Yearly (%) Movement: -2.33%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
Entain has struggled for the last couple of months because of a weak revenue forecast and then posting a poor Q3 financial report. The company has stated that UK regulation and adverse sports bets were the leading causes of the Q3 metrics, but slower growth in Australia/Italy contributed to poor numbers. On the positive side, Entain anticipates that the joint venture with BetMGM will report positive cash profits in Q4. The ENT share price has been very volatile in the last 2 weeks and is currently trading at 892.40 GBX.
Despite the negative drop in share prices, Entain is still at the top of its game in the gambling entertainment industry. The company recently won the Customer Services Operator award at the EGR Italy Awards 2023. It also picked up bronze for Casino Operator of the Year and silver for ESG Strategy of the Year at the EGR Operators Awards 2023. Entain also won the ‘Safer Gambling Operator’ award at the same event.
- Current: 892.40 GBX
- 31 October: 913.00 GBX
- 14-Day Gain/Loss: -20.60 GBX (-2.26%)
- 2023 Market Open: 1,350.50 GBX
- Yearly Gain/Loss: -458.10 GBX
- Yearly (%) Movement: -33.91%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
Playtech share price has been pummeled in the last 6 months, down 32%, but has bounced back since the last report. The stock is up almost 6% in the last 2 weeks and exhibits a bullish trend. Investors probably consider this a good entry point after touching a yearly low of 365.40 GBX on October 25th. The company continues its expansion strategy in newly regulated markets, solidifying its commitment to evolving the industry’s growth and governmental goals. An example of this is that PTEC has placed much confidence in their BetParx and Hard Rock Digital partnerships to expand market share and drive revenue in the coming year in the U.S. market. The stock trades at 415.20 GBX with resistance at 424 GBX and support at 400 GBX.
The company is still at the top of its game after winning 3 EGR B2B Awards – ‘Live Casino Supplier (Winner)’, ‘Casino Software Provider (Bronze)’, ‘Poker Supplier (Winner)’. Plus, Playtech picked up bronze at the latest EGR Awards Italy 2023 for the ‘Casino Content Supplier’ award.
- Current: 415.20 GBX
- 31 October: 386 GBX
- 14-Day Gain/Loss: +29.20 GBX (+7.57%)
- 2023 Market Open: 536.00 GBX
- Yearly Gain/Loss: -120.80 GBX
- Yearly (%) Movement: -22.54%
Light & Wonder (LNW) – NASDAQ NYC – USD
Light & Wonder posted positive Q3 financial data last week, and the stock jumped 9% on the news. The company boosted a 10th consecutive quarter of revenue growth, with a 13% increase in Q3. Market analysts feel that the stock is marginally overvalued at the current price of USD 86.48. They maintain that LNW profitability is stable, but growth will slow in the coming quarters. Light and Wonder could decline as a market correction looks imperative for the overvalued share price. For the full Q3 results analysis, check out the Light & Wonder Q3 Revenue/Net Profit Boosts Share Price report created by yours truly.
- Current: 86.48 USD
- 31 October: 73.34 USD
- 14-Day Gain/Loss: +13.14 USD (+17.91%)
- 2023 Market Open: 58.12 USD
- Yearly Gain/Loss: +28.36 USD
- Yearly Percentage Movement: +48.79%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
After posting mixed Q3 results last month, the 888 share price has been in the red. The company has struggled with regulatory headwinds and management changes in the UK, affecting its bottom line. In recent news, it was revealed that DraftKings was in indirect secret discussions with 888 to purchase the company last summer. Several factors caused DraftKings to walk away from the all-stock purchase; the main reason was the 888 Holdings gaming license was under review by the UK gambling regulator. Another hurdle was 888s’ £1.7bn debt from the acquisition of William Hill. 888 is trading at 77.90 GBX with strong resistance at 84.25 GBX and appears to be headed to lower lows. The bearish movement could spark new talks to purchase 888 from DraftKings or bigger competitors that want to expand their international presence. Its latest In-house product innovation award is a good start at the EGR Italy 2023 awards.
- Current: 77.90 GBX
- 31 October: 82.36 GBX
- 14-Day Gain/Loss: -4.46 GBX (-5.42%)
- 2023 Market Open: 88.05 GBX
- Yearly Gain/Loss: -10.15 GBX
- Yearly Percentage Movement: -11.52%
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