As the COVID-19 pandemic eases, people across the UK and around the world are flocking back to casinos to unwind after a tough year.
In this guide, we’ll review 10 popular casino stocks in the UK for 2021.
Popular Casino Stocks UK List
These are 10popular casino stocks in the UK for 2021:
- Entain PLC (GMVHY)
- Draftkings (DKNG)
- Flutter Entertainment PLC (FLTR)
- Las Vegas Sands (LVS)
- MGM Resorts (MGM)
- The Rank Group PLC (RNK)
- Penn National Gaming (PENN)
- Caesars Entertainment (CZR)
- Melco Resorts (MLCO)
- VanEck Vectors Gaming ETF (BJK)
Casino Stocks UK Reviewed
Let’s take a closer look and review 10 popular Casino stocks that are available for users to purchase in the UK.
1. Entain PLC (GMVHY)
Entian PLC, formerly known as GVC Holdings, is a UK sports betting and casino company that owns well-known brands like Ladbrokes, Coral, Bwin, Partypoker, and Sportingbet. This company has weathered the coronavirus pandemic surprisingly well – over the past 12 months, this FTSE 100 stock has gained a whopping 332%.
Entain has built itself into one of the biggest gambling companies in the UK through a series of smart acquisitions. It seems to be continuing that trend, as the gambling commission just approved its takeover of Swedish gaming company Enlabs AB. In addition, the company is benefiting from a long-term deal with MGM Resorts to co-manage an online gambling platform.
Your capital is at risk.
2. Draftkings (DKNG)
Draftkings is a high risk investment compared to most of the other online casino stocks on this list. However, we think this company’s potential for growth is truly enormous. Over the past year alone, this casino stock is up 466%.
That’s because Draftkings occupies a niche with a lot of appeal. It merges fantasy sports with online sports betting, and hooks users with tournaments and cash prizes. The company hasn’t turned a profit yet, but that’s in large part because it’s spent so much on advertising to get its name out into the public sphere.
The wind is at Draftkings’ back, particularly as more and more US states legalize online sports gambling. The platform recently launched in the UK, too, and it could dramatically expand its potential market by moving into Europe when the time comes.
3. Flutter Entertainment PLC (FLTR)
Flutter Entertainment PLC is a holding company formed after the merger of Paddy Power Betfair (PPB), which is listed on Safe Betting Sites UK. The company also owns FanDuel, the most direct competitor to Draftkings in online sports gambling, and online casinos like FOX Bet in the US and Sportsbet.com.au in Australia.
The company was one of the popular online casino stocks in terms of performance over the past year. It posted a gain of 160% since the pandemic market crash last March, and now sports a market cap of over £28 billion.
4. Las Vegas Sands (LVS)
Las Vegas Sands is one of the largest casino operators in the world. Despite that, the company’s share price has lagged far behind its peers in the gambling industry since last March. This casino stock dropped by more than 50% when the coronavirus pandemic shut down Macau and then Las Vegas. Shares have grown by 64% since the crash, but the stock still sits 19% below the level at which it entered 2020.
None of the company’s fundamental attributes have changed over the past year, save for the death of its founder and CEO Sheldon Addelson. So, investors should expect the shares to bounce back once Las Vegas fully reopens to gamblers.
There’s another bonus for investors looking at LVS shares: a 5.24% dividend yield.
5. MGM Resorts (MGM)
MGM Resorts is another popular casino operator with resorts in both Las Vegas and Macau. The company was hit hard when in-person gambling shut down, first in China and then in the US, and the share price dropped a devastating 73% in just a few days.
On the bright side, MGM used the low-volume year to focus on its growing sports betting and online casino business, BetMGM. The service was available in 7 US states at the start of last year, but is now available in more than 20. That should provide a boost to the company, which expects to resume growth at a rate of 4% per year for the next 5 years.
Another thing investors can look forward to as MGM recovers is a return of the dividend. This NYSE stock paid a yield of 1.8% prior to the pandemic.
6. The Rank Group PLC (RNK)
The Rank Group PLC is a popular Casino stock which may possess a lot of growth potential in the long term. This company owns brands like Mecca Bingo and Grosvenor Casinos, and it’s placed a big bet on the future of online gambling in the UK through its Blue Square platform. In fact, the company’s online gaming revenue rose 23% last summer.What’s valuable about this stock is that it is trading at a discounted rate. It’s trading at around 7 times expected 2021 earnings, and the share price is still down 40% from its pre-pandemic high. The company also cut its dividend payouts, and these could be reinstated to around a 3% yield as normalcy returns.
7. Penn National Gaming (PENN)
Penn National Gaming had the most incredible 2020 of any casino stock. The company’s shares are up more than 1,250% since last March. In addition, Penn’s market cap jumped from $4 billion before the pandemic to nearly $17 billion today.
A lot of this growth has been thanks to the fact that Penn has an ownership stake in Barstool Sports, an online sports betting app and media platform. Barstool pivoted from betting on sports to betting on stocks during the pandemic, so it’s been in the news a lot. The platform has more than 60 million monthly active users, many of whom are fiercely loyal to the gaming service.
8. Caesars Entertainment (CZR)
Caesars Entertainment looked at the COVID-19 pandemic and saw, within crisis, an opportunity. The company made a £2.9 billion all-cash takeover bid for William Hill (WMH), an FTSE-listed casino operator and sports betting company in the UK, last fall. The acquisition sent Caesars’ share price soaring and gave it a foothold in both Las Vegas and London.
Since the Caesars share price bottomed at less than $9 per share last March, investors have been picking up as many shares of this casino stock as possible. It’s now up 870% over the past 12 months, and it’s hard to identify any reason why the company’s growth would slow down in the near future.
Of course, there is some risk to investing in Caesar’s. Despite the stock’s recent run-up, the casino still hasn’t returned to profitability in the wake of the pandemic. In addition 8 of Caesars’ properties are on the Las Vegas Strip, so it’s heavily dependent on Vegas tourism. So, if you want to purchase shares of Caesars Entertainment, you’ll need a strong tolerance for short-term risk.
9. Melco Resorts (MLCO)
It’s important to look for a diversity of opportunities when investing in online casino stocks, just like you would in any other sector. That’s what makes Melco Resorts so interesting. This casino operator is based in Macau and runs several of the biggest casinos on the Chinese island. As such, it’s more affected by trends in gambling in Asia than in the US or UK.
Perhaps unsurprisingly, Meclo Resorts was hit extremely hard by the COVID-19 pandemic and China’s strict lockdown measures. The company lost 57% of its market capitalization. It’s since recovered somewhat, but the share price is still hovering 22% below pre-pandemic levels since China continues to impose strict restrictions on foreign travel.
As a long-term investment, though, it’s hard not to see the appeal of investing in the Macau gambling industry. Wealth is growing not just in China, but in all of Southeast Asia. The new middle class will want to gamble, and Macau is likely where they’ll go to do it. Melco Resorts trades on the NASDAQ stock exchange, so investors get the added protection of US financial regulations.
10. VanEck Vectors Gaming ETF (BJK)
The VanEck Vectors Gaming ETF is the only exchange-traded fund on this list of popular Casino investments. This fund offers instant diversification in your portfolio of casino stocks. Its holdings include Flutter Entertainment, Draftkings, Las Vegas Sands, Caesars, Entain, and more.
The Gaming ETF has done extremely well over the last year, posting a gain of 44.5%. The expense ratio of 0.65% is slightly on the expensive side, but that’s not unexpected given that there are very few other ETFs focused specifically on the gambling industry.
The fund trades on the NASDAQ stock exchange and has net assets of $141 million. So, you are unlikely to encounter any issues entering or exiting a position in this fund.
Are Casino Stocks a Valuable Investment?
Casino shares were among the hardest-hit stocks when the coronavirus pandemic caused lockdowns in the UK, US, and China. But they’ve also been among the fastest to rebound over the past year, and many casino company stocks have exceeded their pre-pandemic prices.
However, the Casino stocks are available at a discounted rate – Las Vegas Sands shares trading 19% below their pre-pandemic price level, for example.
That might make sense if there was long-term damage to the gambling industry, but all signs point to a swift recovery in 2021 and growth in the years ahead. In Asia, the pandemic might keep a lid on spending through the rest of this year, but the long-term forecast for in-person and online gaming in Macau is bullish.
The push into online gambling and sports betting is another factor to consider in the Casino markets. The casino industry is years behind other market sectors in digitization, and the COVID-19 pandemic provided plenty of motivation to accelerate the shift. That means new sources of revenue for gambling companies as they can reach people even when they’re not in Vegas.
Online casino stocks have also benefited from the trend towards legalisation of more modes of gambling. In the US, many states are allowing sports betting for the first time in decades, and that’s created niches for companies like Draftkings and FanDuel (part of Flutter Entertainment PLC). Sports betting could become an enormous new gambling market that doesn’t cut into casino’s existing profitable operations at all.
The one thing investors need to keep in mind is that the bullish prospects for casino company stocks has led to some fiery valuations. While casino company stocks have momentum behind them, stock prices will likely need to pull back and consolidate sometime in the next few months.
However, make sure to carry out your own analysis and research before investing in any company.
Popular Stock Brokers that Offer Casino Stocks UK
If you are looking to purchase Casino stocks, it would make sense to do so with a reputable stock broker. Popular casino stocks span the LSE, NYSE, and NASDAQ exchanges, so it’s important to find a broker with a wide range of stock offerings.
Let’s take a closer look at two stock brokerage platforms that allow users to invest in Casino stocks in the UK.
eToro offers trading on nearly 2,000 shares from the UK, US, Europe, Singapore, Hong Kong, and around the world. Plus, you get to choose whether to purchase shares outright or trade stock CFDs with leverage up to 5:1.
eToro also offers 100% commission-free trades, even if you purchase shares outright. The broker does charge small inactivity and withdrawal fees, but these are straightforward to avoid.
eToro offers advanced technical analysis tools for day trading as well as long-term investing. You have the option to access over 100 built-in technical studies plus dozens of drawing tools. eToro also offers research from professional stock analysts, a market news feed, price alerts, and more.
This platform also has a built-in social trading network where users may follow other traders and share ideas. eToro even has a copy portfolios feature that enables you to automatically mimic the moves of professional traders or copy traders’ existing casino stock portfolios.
eToro is licensed by the UK Financial Conduct Authority (FCA) and provides 24/5 customer support by phone and email. You can access all of eToro’s features through the web platform or a mobile trading app for iOS and Android. eToro accepts deposits by credit card, debit card, PayPal, Neteller, and Skrill.
|Stock Broker||Minimum Deposit||Fractional Shares?||Pricing System||Cost of Buying Stocks||Fees & Charges|
|eToro||$10||Yes – $10 minimum||0% commission on ALL real stocks, spreads for CFDs||Market spread is not included when buying real stocks||No Deposit fees, $5 withdrawal fee, $10 inactivity fee, no account management fees.|
Sponsored ad. 68% of retail investors lose money trading CFDs at this site
Capital.com is a UK CFD broker that offers trading on more than 3,000 shares and ETFs from the UK, US, and Europe. The platform enables you to trade with leverage up to 5:1. However, this should only be used if you have a high-risk appetite since it increases your chances of multiplying losses as well.
Trading with Capital.com is 100% commission-free. The broker has some of the lowest spreads we’ve seen for investing in casino stocks and doesn’t charge deposit, withdrawal, or inactivity fees.
You also have the option to apply and customise dozens of technical indicators and drawing tools, plus manage risk with stop-loss and limit orders. Capital.com only supports price alerts on the mobile app, not the desktop platform, but this is only a minor drawback.
Capital.com has a dedicated education app where users can learn about the basics of CFD trading and technical analysis. It also offers video tutorials and guides, plus a paper trading account so you can practise new strategies without risk.
Capital.com is regulated by the Cyprus Securities and Exchange Commission (CySEC) and does not hold an FCA license. Still, all UK accounts are insured under the Financial Services Compensation Scheme. The broker provides exceptional 24/7 customer support by phone, email, and live chat.
75.26% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
How to Invest in Casino Stocks in the UK
If users are looking to invest in Casino stocks in the UK, you should look to choose a suitable broker that can provide you with low fees, multiple stock options and additional tools & features.
After choosing your suitable broker, here is how you can begin the investment process.
Step 1: Open Account
Head over to the homepage of your chosen broker and begin the account set-up process. You will be required to fill in your personal details – including your full name, email address and mobile number. Create a username and password for the platform to continue.
Step 2: Verification
Most reputable brokers in the UK are regulated by the FCA – which is why users may be required to verify their accounts. To do this, simply upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). Once these documents have been uploaded, your broker should verify them in a couple of minutes.
Step 3: Deposit funds
The next step is to deposit funds into your trading account. Most brokers may support 1 or more of the following payment methods:
- Credit card
- Debit card
- Bank transfer
Choose your preferred payment option and deposit the funds into your account.
Step 4: Invest in Casino Stocks
Once your account has been funded, proceed to search for any Casino stocks or any other stock you wish to purchase on your platform’s search bar. Fill in the amount you want to credit into the trade, and confirm your transaction.
Casinos were hit hard by the coronavirus pandemic, but many have bounced back and the stocks have exceeded their pre-pandemic price levels. Casinos are expecting an influx of visitors and many companies are expanding into online gambling and sports betting.
Due to the uncertainty in the market, users should make sure to conduct their own separate research and analyse the company’s financials and stock, prior to their investment.