When it comes down to sizing the global online gambling market, “all bets are on.” Grand View Research says it will grow 11.5% to $127.3 billion in 2020-2027, while The Business Research Company predicts an increase of 10.4% to $92.8 million in 2019-2023. With these estimates, gambling stocks –including those of online casinos– are roaring up.

Online Gambling Growth

It was a tough last couple of years for brick-and-mortar casinos. The American Gaming Association reports that all commercial and tribal casino properties in the U.S. closed during Covid lockdowns, with tiers 1 and 6 operating between 24% and 50% capacity upon returning to operations. 

However, with this reactivation and the technological advances of online betting, the gambling industry is back with a bang and has become one of the fastest-growing businesses on the planet.

According to Insider Monkey, the online gambling market has reached 1.6 billion people, reigniting an industry that has seen a dramatic transformation through new technology. 

Play Today says that at least 80% of Americans gambled in the past year, as users rushed to online casino directories like Canada Casinos to crash the website, looking for some blazing betting fun.

During the pandemic, the business not only grew in size but also witnessed some eye-catching movements in online gambling stocks, with companies like DraftKings Inc (NASDAQ:DKNG) soaring after its 2020 IPO.

Also, “MGM Resorts International (NYSE:MGM) launched its mobile betting app BetMGM in partnership with Roar Digital, LLC,” Insider Monkey Reports.

Stocks On The Rise

This year, 12 states in the U.S. will legalize sports betting spreading the impact to online gambling platforms. With this outlook, the famous site Gambling.com going public under the “GAMB” ticker, with a price per share estimate of 8$ –although down from $11 to $13.

The company controls more than 30 websites in 13 countries, and hit nearly $28 million in revenue in 2020 and $11.5 million in the first quarter this year.

Another attractive stock option within the online gambling market is Penn National Gaming Inc (NASDAQ: PENN), which was mentioned in the second quarter investor letter of Baron Funds.

The letter said: “Following a 232% gain in 2020, the shares of Penn National Gaming, Inc. declined 29% in the most recent quarter and are down 13% year-to-date. At its recent price of only $73 (down from a peak price of $136 in March), we believe Penn’s shares are now attractively valued.”

The casino firm is based in Pennsylvania boasting an $11.1 billion market capitalization. “PENN delivered a -17.98% return since the beginning of the year, while its 12-month returns are up by 32.73%. The stock closed at $70.84 per share on August 13, 2021.”

Brick-And-Mortar

Amid the economic comeback, brick-and-mortar casinos are also on the way up. According to Truist analyst Barry Jonas gave Las Vegas Sands Corp. (NYSE:LVS) a Hold rating “and increased its price target from $43 to $38.”

The vaccine rollout is likely to exert a positive effect on these stocks, coupled with the company’s solid earnings and optimistic forecast.

Insider Monkey reports that “In the first quarter of 2021, Las Vegas Sands Corp. (NYSE:LVS) had an EPS of $0.68, short on estimates of $0.85. The company’s net revenue decreased 15.6% or $1.20 billion from the previous quarter.”

As for Caesars Entertainment Inc (NASDAQ:CZR), the casino leader saw a solid EPS of $2.03 in the first quarter, up from $1.80. Its revenue during the same period hit $1.7 billion, an increase of 259.2% versus the last year. “Caesars Entertainment, Inc. (NASDAQ:CZR) has gained 131% in the past 12 months and 27% year to date.”