The outbreak of the COVID-19 pandemic last year put a dent in the gambling industry worldwide. Notably, social distancing measures required the brick-and-mortar casinos to be shut to curb the spread of the virus, leading to an adverse effect on the industry. However, online gambling emerged as a silver lining during the crisis as people were compelled to remain at home and resort to online platforms for gambling. Moreover, the rising usage of smartphones across the globe has helped in bolstering the interest in online gambling.
Nonetheless, the situation seems to be improving gradually, thanks to vaccination programs across major economies, which should lead people back to casino floors, along with their continued interest in online gambling. Notably, a report by Research and Markets stated that the overall global gambling market is expected to reach $516.03 billion in 2021 from $465.76 billion in 2020, witnessing a CAGR of 10.8%, as mentioned in a
PR Newswire article. Moreover, the article stated that the global gambling market is estimated to reach $674.7 billion in 2025, at a CAGR of 7%. U.S. Gambling Makes a Comeback in Q1
The PR Newswire article also stated that North America was the second-largest region in the global gambling market in 2020, and accounted for 29% of the global gambling market. Nonetheless, the gambling industry in the United States was negatively impacted by the pandemic last year. However, thanks to the gradual reopening of the economy, the U.S. gaming industry made a comeback in the first quarter of 2021, indicating that people are now willing to go out and travel to the casino floors for fulfilling their entertainment needs.
Markedly, the American Gaming Association stated that U.S. commercial gaming revenues reached $11.13 billion in the first quarter of 2021, witnessing a rise of 17.7% over the year-ago quarter, as cited in another
PR Newswire article. In fact, the article stated that first-quarter 2021 revenues matched the revenues recorded in the third quarter of 2019, which was the industry’s highest-grossing quarter of all time. Notably, the article further stated that more than half of the states with commercial casinos witnessed an increase in quarterly gaming revenues over the first quarter of 2019 while many states also reported record quarters. 4 Stocks to Buy Now
The gambling market worldwide seems poised to make a comeback this year as the major economies continue to reopen. Notably, first-quarter results in the United States already showed how rapidly the U.S. gambling industry is making a comeback. Hence, this seems like an opportune moment to invest in companies that can make the most of this turnaround. Notably, we have handpicked four such stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see
. the complete list of today’s Zacks #1 Rank stocks here Boyd Gaming Corporation ( BYD Quick Quote BYD - Free Report) , together with its subsidiaries, operates as a multi-jurisdictional gaming company. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 60.1% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Red Rock Resorts, Inc. ( RRR Quick Quote RRR - Free Report) , through its interest in Station Holdco and Station LLC, engages in the casino, gaming, and entertainment businesses in the United States. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its next-quarter earnings increased 52.9% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. International Game Technology PLC ( IGT Quick Quote IGT - Free Report) operates and provides gaming technology products and services worldwide. Moreover, the company provides digital gaming products and services, including poker, bingo, and online casino table and slot games, among others. It currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased more than 100% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Golden Entertainment, Inc. ( GDEN Quick Quote GDEN - Free Report) , together with its subsidiaries, engages in the ownership and operation of a diversified entertainment platform in the United States and operates through two segments, namely, Casinos and Distributed Gaming. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased more than 100% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Time to Invest in Legal Marijuana
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