Covid-19 changed the world in a lot of ways.
Perhaps most obviously, it accelerated the world’s shift into the modern digital era.
During the pandemic, we have all shopped online more. Ordered more food through delivery apps. Spent more time on Facebook, Instagram, and Twitter. Watched more Netflix shows. Engaged more with digital work platforms like Slack and Teams.
You know what else we did more of during the pandemic?
Gambled online more.
U.S. iGaming revenues have risen an astounding 105% from February 2020 (right before the pandemic) to September 2020.
This is not a temporary shift.
Much like the e-commerce and the streaming TV shifts, the 2020 shift to online gambling is a permanent acceleration into the future of the $100 billion gambling world.
Why?
For all the same reasons that Amazon is the future of shopping and Netflix is the future of media.
IGaming offers consumers a gameplay experience that’s on par with in-casino gambling, while at the same time lending itself to superior convenience, access, and affordability.
You can play a game of virtual poker or Blackjack, and win real money, by just sitting at your home and clicking a few buttons on your computer.
Much in the same way you can shop on Amazon.com, and buy real products that get delivered to your door within days, by just sitting at your home and clicking a few buttons on your computer.
And in the same way you can open up Netflix on your TV, and watch high-quality TV shows on par with Hollywood content, by just sitting at your home and clicking a few buttons.
Folks… the parallels here are too strong to ignore.
Casinos will get virtualized over the next decade much like movie theaters and malls have been virtualized over the past decade.
Of course, the best question to ask here is: Why haven’t casinos been virtualized yet?
After all, e-commerce sales already account for more than 15% of total retail sales and Netflix is essentially in every TV household in the U.S.
Why the lag in the iGaming megatrend?
Legislation.
In short, iGaming is only legal in four states: Pennsylvania, New Jersey, Delaware, and West Virginia. The lack of legalization has kept this industry from following in the footsteps of streaming TV and e-commerce.
But the legislative tide is starting to turn.
Three states – Maryland, South Dakota, and Louisiana – voted to legalize sports betting in Election 2020, joining 18 other states and Washington D.C. to have done the same.
Sure, that’s sports betting, not iGaming. But legalization of sports betting is a proven leading indicator of iGaming, because the four states which have legal iGaming, were among the first to legalize sports betting.
Plus, consumer interest in iGaming is growing thanks to Covid-19, while physical casino shutdowns have increased casino operator support of and investment into the iGaming market.
The writing is on the wall.
The nascent iGaming market is gaining tremendous momentum…
And will leverage this momentum to follow in the footsteps of the streaming TV and e-commerce megatrends over the next decade, ultimately virtualizing casinos much as those industries have virtualized movie theaters and malls.
It’s a disruptive, hypergrowth megatrend that deserves your attention now.
What’s the best way to play this megatrend?
Glad you asked. A few names come to mind.
Of course, there’s the market leader in DraftKings (DKNG), a company that will leverage network effects and first mover’s advantage to dominate the sports betting and Daily Fantasy Sports verticals of iGaming.
Then there’s Golden Nugget Online Gaming (LCA), a spin-off of the Golden Nugget casino chain which is already dominating the online gambling market in New Jersey.
Technology company GAN (GAN) is a solid picks-and-shovels play on the industry, as they provide the technology framework upon which iGaming platforms operate.
The list goes on and on…
As it should. Think about all the successful e-commerce companies in the marketplace – there will similarly be a ton of successful iGaming companies at scale.
It’s a hypergrowth megatrend that will present you with multiple compelling long-term investment opportunities.
And that’s why we will keep this megatrend – and its top stocks – at the top of your mind…
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The New Daily 10X Stock Report: 98.7% Accuracy – Gains Up to 466.78%. InvestorPlace’s brand-new and highly controversial newsletter is rocking the industry delivering one breakthrough stock recommendation each and every trading day delivered straight to your inbox. 98.7% Accuracy to Date – Gains Up to 466.78%. Now for a limited time you can get in for just $19. Click here to find out how.
