• July 30, 2021

Investing in Casinos – A Modern Financial Trend

Gambling has been popular for centuries, but only in recent years have casino companies and corporations also become a major investment option in public markets, and with quite a bit of popularity as well. Online gambling has been pushing casinos and traditional gambling into the modern primetime view, now becoming a big past time on sports TV with large-billing casino card game contests and championships being aired.
Casinos and card rooms have long been associated with vice, but in modern times the same companies that years ago used to be parked on the wrong side of town are now major corporations employing hundreds and thousands of workers. In some cases, these companies are multi-national, operating sites in different countries halfway across the world. And as a business, their ability to make profit seems to be reliable enough to withstand economic ups and downs, ironically making more money when times are tougher in some cases. Even more so, the Internet is offering new business ventures with major ventures setting up online gambling where possible.
Investing in casinos is quite easy now too. Following a traditional format, one could buy shares in a public casino company, making a profit either on the rise in share value or, where offered, on the stock’s dividend payout as well. Las Vegas Sands (LVS) is a perfect example, offering stock shares that can be bought and owned through any typical stock brokerage service. LVS has been a viable public share stock available since December 2004, providing investors a way to diversify into the gambling industry without actually gambling to make a profit.
Alternatively, one could invest in mutual funds that purchase casino stocks in their portfolio. This gives an investor a bit more protection because the casino shares are part of a bigger mix of stocks from other companies within the mutual fund’s holding. Exchange-traded funds work the same way but in a more passive way, without a fund manager directing the decisions. Instead, ETFs follow a given market measurement whether it goes up and down. It allows exposure to an industry or market slice and still offers a portfolio defense versus investing in a single stock. Market Vectors Gaming (BJK) is an example of a gambling ETF.
Thirty years ago the tools discussed above didn’t exist. Casinos were still relegated to Las Vegas or Atlantic City, as a past time activity that was not allowed proper entry to the full circles of national business. However, decades later all of that attitude has changed. Much of that change has been ushered into reality by the Internet and online gaming, which continues to be a booming aspect of the gambling industry.

Steve Carr

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