How to Invest in the iGaming Industry?

Invest in the iGaming Industry

If you want to invest in non-GamStop casinos, stocks and ETFs are the natural options. With shares, you have proof that you are the owner of equity in a listed iGaming industry company together with other owners. With ETFs, you get the advantage of investing in many companies at once, which means that you get to spread the risk. This is also a cheaper way to invest, as you can do it with just one trade.

CFDs are contracts offered by many online brokers. These have been prepared so that the price development follows the underlying share's price development. However, when trading CFDs it is important to know that you do not own the stock, but only the contract between you and the trading broker.

Cryptocurrencies and NFTs are a very volatile market with extreme price fluctuations, which gives a very high risk. At the same time, the upsides are all the better. After all a proper investment here can make the value skyrocket and give an enormous return. Your risk preference should therefore be something you think about before deciding whether investing in crypto and NFT is for you.

Brokerage & Spread

There are costs every time you buy or sell shares, CFDs, ETFs, cryptos, or NFTs. Typically, you pay a brokerage fee. Furthermore, there is a hidden cost called the spread, and this is the difference between the purchase price and the sale price. These are costs you have to calculate every time you shop, whether you buy or sell. Thus, these costs must be as low as possible. If the brokerage and spread costs become too high, this can lead to your returns being eaten up.

Portfolio & Risk

A common mistake among beginners is to go "all-in" on one particular stock of non-GamStop casino. Although this can go well, there are also high chances of it going badly. If the one company you hold shares in delivers bad news that causes the share price to fall, this naturally causes your investment to fall as well. However, if you invest in several different companies, you spread the risk so that it is lower.

Let's take an example: You invest in 4 different iGaming industry companies and you have 25% of your portfolio in each of these stocks. You have therefore spread your investment equally across the four companies. If one company ends up with bad figures that lead to the company's share price being halved, the investment you have in this company is also halved. However, since you only invested one-quarter of your portfolio in the company, the loss is only one-quarter of 25% of your portfolio's total value. If you had gone all-in on this one stock you would have suffered a loss of 50% of your investment, but by spreading your investment over several companies you avoid this.

iGaming ETF

In recent years, iGaming ETFs have become very popular investment objects. ETF stands for Equity Traded Funds. These may specialize in investing in specific industries and trades such as iGaming.

There are several advantages to investing in these listed funds. The main reason is that the funds spread the risk by investing in several companies. So even if one company in the fund should do poorly, the other companies can make up for this. Thus, the fund still gives a positive return.

Investing in several companies to spread risk is something anyone can do in theory. But, this can quickly become expensive for an individual who has to carry out many trades. If, on the other hand, you invest in an ETF fund, you only need to make one trade to be invested in several companies. In other words, it is a more affordable way of investing.

Several listed funds focus on investing in the iGaming industry. Some of the most popular are:

  • Roundhill Sports Betting & iGaming ETF (BETZ) - This listed fund tracks the Roundhill Sports Betting & iGaming Index. By trading this fund you are invested in companies such as Kindred Group, Entain, and Kambi Group.
  • VanEck Vectors Gaming ETF (BJK) - This is a listed fund that follows the MVIS Global Gaming Index. By investing in this fund you are simultaneously investing in companies such as Las Vegas Sands, Draft Kings, and Flutter Entertainment.

The Metaverse & Investments in Non-GamStop Casinos

Cryptocurrency has long since gone from being something for those with special interests to becoming something that the vast majority of people know about through regular news reports in the national media. In recent years, there have also been an enormous number of crypto casinos. Or, non-GamStop casinos with cryptocurrency as the main focus. This is where the constant development takes place both within cryptocurrency and blockchain technology in general. The progress of NFTs and Metaverse is undoubtedly a good example.

Many people are keeping their eyes on the Metaverse recently. Especially, as Facebook itself changed the owner company's name from Facebook to Meta. It says a lot about what Mark Zuckerberg and his innovative employees think about the future.

Until then, however, it may be difficult to define what the Metaverse is, stands for, or is about. However, most things these days are about blockchain technology. Thus, several projects are developing digital worlds within this technology. Furthermore, each digital world has its very own cryptocurrency.

It is easy to imagine that Metaverse can have a strong relationship with the iGaming industry in the future. Especially, for things like a live casino experience. The gaming experience can quickly become even more authentic and realistic than it is today when live casinos are integrated into the Metaverse.

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