The IC view of the gambling sector
- The US looks like a key growth market for the gambling sector - sports betting is currently legal in 26 US states, and Morgan Stanley predicts this will rise to 39 by 2025
- US gambling companies are increasingly looking to snap up UK operators for their technology and expertise
- Featured companies: Entain, 888 Holdings, Flutter Entertainment, Penn National Gaming and Caesars Entertainment
Gambling companies have been among the winners of the pandemic as people have looked for a distraction from the boredom of repeated lockdowns. While there has been pressure from the cancellation of sporting events and closure of casinos and betting shops, this has been tempered by consumers flocking to online and mobile betting.
Indeed, for Ladbrokes-owner Entain (ENT) – formerly known as GVC – while underlying cash profits (Ebitda) from its retail operations dropped by close to two-thirds last year, to £98m, profits from its online businesses jumped by 50 per cent to £804m.