Should You Invest in UK bookmakers?

The betting industry in the UK is getting bigger every year, with the industry now worth around £14 billion in 2023 or £9.5 billion without the inclusion of lotteries. It has been estimated that 44% of the UK gambles, although this does include buying a lottery ticket for many. 75% of the UK gambling is now done online which equates to around £6.8 billion and this was given a further boost during the Covid pandemic when betting shops were closed and customers had a lot more time at home to place bets and play games online.

 

Betting first became popular in the many high street shops in which customers could just walk in and place a bet on any sport they wanted but now online gambling has become a very popular alternative. Online gambling not only consists of sports betting but also offers casino games and slots to further enhance the entertainment of customers and encourage more money to be spent with a chance of winning.

The Types of Online Gambling

Sports Betting: Horse racing was one of the first and most popular sports to bet on in a high street shop, but over the years more sports have been added to the mix including football, golf, cricket, tennis, basketball and so much more. One of the biggest growing sports in the UK and Ireland is horse racing, with Betfree.ie suggesting that it is the single biggest sport bet on in the UK (by wagers placed). The range of bets have also broadened from the simple match outcomes and scores to the more unique options such as number of corners or yellow cards or choosing a specific player to get sent off.

Casino Games and Slots: Fruit machines were very popular in land casinos along with table games such as blackjack and roulette and now there are even more options available on online gambling. There are thousands of virtual games online on mobile phones and desktops with an array of different themes, TV show or film based or even variations of the classics and live dealers to create a realistic gaming experience.

How to Invest in UK Bookmakers

The majority of UK bookmakers are publicly listed on the London Stock Exchange apart from William Hill which is privately owned and therefore you are unable to invest in this company directly. The UK market is dominated by five companies that own or operate the high street and online names which are Flutter Entertainment, 888, Entain, Rank and the private company Bet365.

You must first create an account on a legitimate investing platform such as eToro or Interactive Brokers before you can invest in a gambling company. You should consider the different platforms security, fees, trading tools, and market data to ensure you make the right choice for your needs. Before you invest, you also need to consider these factors:

• Stock Prices

You should always check out the current share prices and note any recent price changes. Find out what may have caused the shift in price such as the market conditions or business occurrences before you commit to investing in some shares.

• Financial Reports

You should also learn about the performance of the company in the market and read through the quarterly and annual financial reports. Check out the London Stock Exchange website and the company’s website where you should be able to find the necessary data such as their expenses, revenue and debt.

• How Much You Want to Invest

Once you have done plenty of research and have decided which company to buy shares in, you must also decide how much money you want to invest. This may depend on the current share prices and if you want to invest in more than one company as well as the amount of money you can afford.

Should You Invest in UK Bookmakers?

With the ever increasing popularity of online gambling each year that is providing a big boost to the annual revenue, it may be a good time to invest in UK bookmakers. The gambling space is constantly expanding with new forms becoming available which only boosts profits and the company shares are known to provide a high return on investment. The stocks and shares can also be easily bought and sold due to their high liquidity and depending on how much you can afford, investing in UK bookmakers is a possibility for high reward.