Dividend Outlook for Online Casino, Trading and Sports Betting

June 17, 2022

The global online casino market was valued at $72.3 billion in 2021. The industry is expected to see a CAGR of 9.9% during 2022-2027, reaching a value of $131.4 billion by 2027. The Covid pandemic of the past two years is likely to have played a role in this growth. However, increasing internet penetration across the world and rapid urbanization are the key drivers of the online casino industry.

The industry’s growth is also being fueled by increasing legalisation across nations, along with cultural approval of online betting. This is quite evident from the high-profile sponsorships that many online sports companies, especially football clubs, have been able to garner. Technological advancements, including the convenience of accessing online casinos on a smartphone, have also played a role in popularising the industry.

However, the online gambling industry remains highly fragmented, with numerous small and large players competing for clients. The most popular game types include sports betting, football, horse racing, eSports, live casino, baccarat, blackjack, poker and slots.

Top Online Casino Stocks to Keep an Eye On

With brick-and-mortar casinos forced to shut down in the wake of the pandemic, many established casino operators jumped onto the online bandwagon. Some of the biggest names among these were MGM Resorts and Wynn Resorts. Leading online gambling firm, DraftKings held its IPO in 2020 and saw a huge surge in share price. Let’s take a look at online casino stocks and their dividends.

MGM Resorts International

MGM operates casinos in the US and Macau. In 2020, the casino giant partnered with Roar Digital, LLC to launch a mobile betting app, BetMGM. In the first three months of 2021, the BetMGM earned $163 million and contributed 90% of the company’s total revenue in 2020. MGM declared a dividend of $0.0025 on May 2, 2022, ex-div date of June 9, 2022. We expect the company to declare a dividend of the same amount on August 3, 2022, ex-div date of September 9, 2022.

Wynn Resorts Ltd.

Wynn is another diversified casino company that has not yet recovered from the pandemic impact. The casino segment posted revenues of approximately $2.13 billion in 2021, a little higher than $1.2 billion in 2020, but much lower than $4.57 billion revenue in 2019. The company’s focus on luxury properties in areas like Dubai and Boston could be positive for investors in the future. Wynn hasn’t declared a dividend since early 2020 and isn’t expected to pay out in the near future.

Las Vegas Sands Corp

The company has a huge base in the Asian market, with 5 casinos in Macau, and 1 in Singapore. In 2021, it sold its Las Vegas business to a private equity firm. With a focus on the international market, the company has been slow to enter the online gaming market. Finally, in July 2021, Las Vegas Sands announced plans to invest in digital gaming technologies. The company hasn’t declared a dividend since January 2020 and we do not expect it to declare one in 2022.

The Sports Betting Market Outlook

The global online sports betting market is segmented into sports types like cricket, football, tennis, boxing, golf, horse riding, and others. Europe holds the largest market share, followed by North America. Since the US Supreme Court revoked a federal ban on the activity in 2018, the market has grown in the US. The industry is further segmented into spread betting, e-sports, line-in-play, daily fantasy, fixed old betting, and others. The web-based segment holds a larger market share than mobile-based applications. Rising investments in digital technologies will propel this sector further. However, Covid-19-led restrictions have led to the cancellation of many major sporting events, impacting the growth of the market.

Football is expected to grow at the fastest rate in the online sports betting segment, at a CAGR of 12% during 2019-2026. The overall global sports betting market is expected to grow at a CAGR of 13.6% during 2019-2026, to reach a size of about $60 billion in 2026.

Top Online Sports Betting Stocks to Watch

Boyd Gaming Corp

The company is expected to declare a dividend of $0.15 in June 2022, ex-div date of June 10, 2022. We are forecasting the next interim dividend with ex-date 22nd September 2022.

International Game Technology PLC.

The UK-based company declared a dividend of $0.20 in May. We are forecasting an interim dividend again in August 2022, ex-div date August 10, 2022.

Online Trading Market Outlook

The pandemic-induced lockdowns brought many young retail investors to the financial market. The popularity of online trading has grown with the advent of mobile-based, custom trading platforms, with chatbot integrations, market alerts, trading tools and huge access to global assets.

Increased regulatory oversight has improved investor protection in the American, European, Asian and Australian markets. Rising demand for cloud-based trading solutions will support broker companies, while top brands have made key geographical expansions and key investments in 2021. The global online trading platform market is forecasted to grow from $8.59 billion in 2021 to $12.16 billion in 2028.

Top Online Broker Stocks to Look Out For

Interactive Brokers Group Inc.

The US-based online broker declared a quarterly dividend in April 2022. It is expected to declare a dividend of $0.10 on July 19, 2022, ex-div date of August 31, 2022.

Plus500 Ltd.

The FTSE-listed company expanded to North America in February 2021. The group has significant expansion plans, reflecting its operational resilience in the face of market volatility. The company declared a special dividend of $0.22 in February 2022. Its biannual dividend is forecasted at $0.60, ex-div date September 1, 2022.

Predicting Dividends the Woodseer Way

Rising global internet penetration will continue to drive the online casinos, spread betting, and the trading industry. So will advancements in smartphone technology. However, these industries are always under tight regulatory scrutiny, impacting their expansion policies, products and business strategies.

Woodseer Global combines analyst expertise with AI to provide accurate dividend projections of companies in these sectors. Our accuracy is unrivalled and helps investment managers pick stocks to diversify portfolios the right way. Contact us to learn more.