4 Gambling Stocks Set for a Bull Run in 2021
If someone could bet a large sum of money in late 2019 that the novel coronavirus alter global conditions would change so dramatically, the return would have been astronomical. And while there are ways to bet on unusual things with little odds of profiting, the gambling stocks below offer high odds of performing well in 2021.
A ReportLinker report on the global gambling industry predicts growth:
- Global gambling market to reach $647.9 billion by 2027 even accounting for the pandemic.
- Lotteries are projected to post a 9.9% compound annual growth rate and total $209.9 billion by 2027.
- The casino segment’s CAGR, citing the pandemic, was revised to 2%.
The gambling resorts that follow attract thousands of visitors each year. Traveling is expected to rebound – entertainment too. And, the stakes are high that adding quality gambling stocks to your portfolio could mean a nice bull run in 2021.
With economic recovery and an increase in consumer spending, these exchange-traded funds and companies could perform well next year:
- Roundhill Sports Betting & iGaming ETF (NYSEARCA:BETZ)
- VanEck Vectors Gaming ETF (NASDAQ:BJK)
- MGM Resorts International (NYSE:MGM)
- Las Vegas Sands (NYSE:LVS)
Gambling Stocks: Roundhill Sports Betting & iGaming ETF (BETZ)
This sports betting ETF includes gambling stocks focused on the sports betting & iGaming industries. But the good news is that it has a global view and not just U.S. stocks.
As of late December 2020, the assets under management were $204 million and the expense ratio was 0.75%. This ratio is considered neither too high, nor too low.
While the U.S. is the largest country with net assets exposure, this fund offers plenty of diversification with the rest assets targeting Europe and Asia. There is a preference for mid-cap stocks, which represent 51.4% of the net assets. Assets are rebalanced quarterly.
The net asset value increased by 39% since its inception in June 2020.
VanEck Vectors Gaming ETF (BJK)
According to the fund description, this gambling ETF “seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Gaming Index, which is intended to track the overall performance of companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology, and gaming equipment.”
As of late December 2020, the total net assets were $75.7 million, and the net expenses ratio was 0.66%. This ETF can add diversification investing in gambling stocks with 42 holdings. The U.S. is the country with the largest weighting at 46.92%. Other countries represented include Australia and China. With a year-to-date performance of net asset value of 11.59%, the overall performance is considered attractive.
Both of these ETFs offer the benefit of investing in gambling stocks without focusing directly on stock analysis, suitable for passive investing. For investors with a more active style of investing, the following gambling stocks offer attractive risk-reward potential in 2021.