Evaluating the progress of publicly limited iGaming companies

There is no doubt that the iGaming sector is one that is currently booming and there are still a number of huge external factors that could suggest there will continue to be an increase in the industry in the future.

One such advantage that the sector has includes the American market, as lawmakers have started to legalise betting in certain states on sports and iGaming. The market is still considered to be a relatively new one as well, therefore giving all in the industry that are involved the opportunity to have success almost immediately, should they get things right.

“The driver for all of these companies is that the United States presents tremendous market opportunity, both for sports gambling and iGaming. It is the largest market, by far, in the world,” said Joe Stauff, an analyst with Susquehanna International Group. “So any company that believes it has the ability to offer sports wagering or iGaming would be crazy not to enter the U.S. market.”

Whilst the appeal of something new for players in the US provides iGaming companies with a new target audience moving forward, the recent Coronavirus pandemic will have also provided businesses with new opportunities as well.

As global lockdown measures were put in place, one of the first businesses that would have taken a hit in earnings would have been the physical casinos. Bettors would not have been allowed to play in these establishments, although some will have likely turned to the online casino market and started to use their offerings.

Public limited iGaming companies look to take advantage

Although it would be difficult to realise the full extent as to how damaging the COVID-19 pandemic has been, it would be wise to suggest that the online market will have seen some increase and one that will likely continue to grow, even once normality to the world is restored in some capacity.

There have been some publicly traded companies to have taken advantage of the relaxation of laws in America, with DraftKings stepping into new territory. The company went public on April 24, and will offer investors around the world their first real chance to get direct, pure play exposure to the American online gambling market.

However, some iGaming companies have taken the plunge to trade as publicly limited companies for a significant period of time with investors having been on board for decades in some cases.

Ireland-based Flutter Entertainment, who own a large stable of gambling giants (FanDuel, Poker Stars, Paddy Power and others), have been publicly traded on the London Stock Exchange, in one form or another, for the last 20 years.

NetEnt

NetEnt is just another prime example of a company that has used the Stock Exchange to their advantage, as they have a reputation that is considered to be one of the best online casinos and platform developers.

The Swedish developers have been listed on the Stockholm Stock Exchange since 2007 and have continued to trend in an upward trajectory over the last decade or so. According to their website, a total of 276.6 million NetEnt shares were traded on the stock exchange for a combined value of SEK 8.5 billion ($920m/ £725m/ €811m) in 2019. NetEnt also reported that the average daily volume of shares traded during the year was 1,106,225, equal to an average daily traded value of SEK 34.0 million ($3.68m/ £2.9m/ €3.2m).

Whilst the earniers that have been made through trading will have been handsome, the developers will have also benefited from the influence the investors will have no doubt had on their business.

Based on market statistics for 2017 from h3GC, NetEnt had an estimated global market share of 17% as well as 28% share of the European market. This figure will have only likely have increased over the last few years as the Swedish company acquired Red Tiger Gaming in 2019.

This success has not passed by unnoticed by the iGaming industry. The industry has recognised NetEnts innovative and mobile friendly games in several B2B awards. Since 2012, NetEnt has won over 32 high prestige awards. The awards have been given from organisations like EGR, IGA, WiG, Global Gaming Awards, and International Gaming Awards.

In fact, NetEnt slots are doing so well, that SlotCatalog have the company ranked as one of the best providers of games across most regions across the world.

For those unaware, SlotCatalog is an internet platform that is continuing to grow at a rapid rate that aims to provide players, casino operators and game developers with everything they need to know about the current online market. The company currently has a database with over 16,000 games and 1,700 casinos, although these are continuing to be added to at an exponential speed.

Some of the benefits that the company brings to their users are comprehensive guides and reviews of the slot machine games in their database, they provide visual information about all the games, but perhaps most importantly, is their data regarding how well companies are doing across certain markets and regions.

When looking at the United Kingdom market, SlotCatalog’s ranking system has NetEnt slots as one of the highest rated online casinos, with five of their top titles all sitting firmly near the top of the rankings. These games are: Starburst, Gonzo’s Quest, Twin Spin, Gorilla Kingdom and Finn and the Swirly Spin.

The Scandanavian company has also managed to maintain consistent positions/rankings when it comes down to their average lobby positions, as well as continually increasing the games that are on offer.

Conclusion

Considering there are a number of different iGaming companies that have decided to turn into publicly limited companies now, perhaps it would be fair to say when evaluating progress of this particular business decision is one that has been doing well.

NetEnt have shown just exactly what they have been able to achieve since being listed on the Stockholm Stock Exchange, whilst the likes of DraftKings have only just decided to take the plunge themselves in a market that is likely to grow massively.

Irish firm Flutter Entertainment appear to be thriving with the two or more decades they have had on the public trading floor, whilst the likes of International Game Technology (IGT) and Playtech have both taken a leaf out of NetEnt’s book.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes