An astonishing 3.32 billion gamers can only mean explosive industry growth and swift expansion in the online gaming realm.
To help you understand what this’ll look like in the near future, this blog guides you through 2024’s 8 biggest iGaming stocks.
Overview of the Online Gaming Industry
Growing market
In 2022, this powerhouse industry was valued at over $63 billion. It’s projected to skyrocket to a staggering $426.02 billion by 2029, with a 9.32% growth rate (CAGR).
Legalization in more states
As more companies cash in on the digital casino craze, plenty others want a piece of the pie. However, only a handful of states in the U.S. currently allow iGaming. But places like New Jersey and Pennsylvania prove it’s a lucrative income source. So, more states might soon follow their lead. The buzz surrounds merging games of chance with the internet’s old rules and forging new ones. However, this change isn’t happening rapidly; for example, New York had an opportunity but decided against iGaming for the 2024-25 budget.
Meanwhile, more than 30 states have embraced sports betting, letting fans wager from home or venues. With each state rewriting regulations, keeping track becomes a game itself. Additionally, the rise of the live casino adds another dimension to the gambling landscape, offering players the opportunity to experience real-time gaming with live dealers and interactive features.
Top 8 iGaming Stocks of 2024
DraftKings
DraftKings achieved a whopping 44% revenue surge in a recent quarter. Though missing Wall Street expectations, the leap was bold. Commanding around 25% of the U.S. online sportsbook market, DraftKings remains an online betting and gambling heavyweight. Stock prices saw a decline due to updated estimates, highlighting investors’ focus on the company’s financial well-being.
MGM Resorts
In the casino industry, MGM Resorts stands tall among giants, maintaining a strong market share and impressive Macau presence. On April 15, 2024, Seaport Global recommended a buy for them. MGM Resorts isn’t just big in the U.S. – their Macau operations are thriving too. Their market share there surged from 9.5% to 15.2% in 2023, a significant leap. However, MGM Resorts’ stock hasn’t always been on the rise, dropping 4.10% year-to-date despite success.
Caesars Entertainment
This company saw digital net revenues soar to $1.0 billion in 2024 – a massive increase. Their online games attracted more players, driving 77.5% revenue growth.
Caesars Entertainment has become the largest casino operator in the United States, with its market capitalization reaching an impressive $9.6 billion. This success can be attributed to their merger with Eldorado Resorts in 2020.
Penn National Gaming
Penn National Gaming, now known as Penn Entertainment, Inc., has established itself as a prominent player in the U.S. and Macau casino markets. This entertainment conglomerate is making significant strides in online gambling and sports betting. Their strategic partnerships for both iGaming and sports betting operations are a clear demonstration of their commitment to these sectors. Notably, institutional investors hold over 147 million shares, reflecting their confidence in Penn’s business strategy.
FuboTV
FuboTV has emerged as a leading name in the live TV streaming space, particularly catering to sports enthusiasts. At the conclusion of Q4 2023, FuboTV accumulated between 1.415 and 1.435 million compensated consumers across North America.
This was a remarkable surge of around 11% compared to the preceding year, though its shares encountered a setback, plunging by 28% during early 2024. But the platform exhibited resilience, with the share price rebounding to $1.45 by mid-April. This virtual multichannel video programming distributor transcends merely delivering live sports to households; it is shaping up to be a formidable contender in the streaming platform arena.
Microsoft
Microsoft has executed bold moves in the gaming realm, most notably its $68.7 billion acquisition of Activision Blizzard. This monumental deal propelled Microsoft’s prominence in the gaming industry skyward.
Their financial resources are formidable—with a market cap surpassing $3.1 trillion, describing them as a “major player” seems like something of an understatement. After fortifying its gaming lineup with Activision Blizzard’s hit titles, expectations are elevated for Microsoft to garner even greater financial gains and sustain robust growth.
Electronic Arts
Electronic Arts (EA) is riding a wave of triumph in 2024. EA’s stock has shone among top gaming picks despite some prior dips. Their games keep players glued, fueling a slow yet steady climb of sales. Critics suggest EA might be an underrated gem in mobile gaming, a hot March 2024 pick. It’s not mere gameplay; investing in EA could spell major non-virtual wins too.
Nintendo
The buzz around Nintendo roars, especially with rumors of a new Nintendo Switch afoot. This anticipation has gamers and investors on high alert, given past launches skyrocketing stock prices. Since the original Switch hit shelves, Nintendo’s value has soared over 200%, hinting at potential with this next release.
Nintendo proudly sits among 2024’s top 8 iGaming stocks for good reason—not just new console releases, but a track record of knocking it out of the park every time.
Industry gurus anticipate Nintendo shares could leap by 30% if the rumored Switch 2 launches in 2024 as expected. Investors seeking long-term gaming stock opportunities may want to monitor Nintendo closely, as past successes suggest potential for history to profitably repeat itself.
To conclude
The iGaming landscape in 2024 buzzes with excitement that surpasses summertime backyard festivities. Leading players like DraftKings, MGM, and Nintendo stand at the forefront, driving staggering growth. With billions worldwide fueling this gaming craze, investing in select stocks presents an opportunity to partake in substantial gains. Today’s financial commitment could yield tomorrow’s windfall.