It’s an interesting condition for gambling stocks to counter gambling problems. On the other hand, cash flow will be significantly reduced. On the other hand, if you don’t, you may be compared to some kind of monster that destroys your life. Several gambling stocks took the first corner of that dilemma today, but most shareholders aren’t happy.
MGM Resorts (New York Stock Exchange:MGM) has decreased by only a fraction, Flutter Entertainment (New York Stock Exchange: Flutto) fell nearly 7%. DraftKings (NASDAQ:DKNG) struggled even more, falling nearly 8%. The only company to buck this trend was Penn National Gaming (NASDAQ:PEN), which rose slightly in Wednesday morning trading.
These four gaming operators, along with Hard Rock Digital, bet365 and Fanatics Betting and Gaming, have all come together to form ROGA, the Responsible Online Gaming Association. Together, these seven represent just over 85% of all legal online gambling in the United States, making them a significant market force.
They also poured in their own money, putting in more than $20 million to fund the operation. His $20 million will go toward educational programs, advertising and marketing efforts, and the creation of an “independent clearinghouse” of data for consumer protection.
DraftKings intentionally limits itself
DraftKings’ recent operations detail how puzzling this type of setup is. On March 8, the company announced that it has expanded into the North Carolina gaming market, giving it access to a huge new market. It also vowed to operate in accordance with “responsible gambling procedures”, including deposit limits. Meanwhile, just two weeks later, the company announced it would make its problem gambling program available in conjunction with Kindbridge Behavioral Health. Essentially, you are intentionally placing limits on yourself.
That may seem counterintuitive. Why wouldn’t you want to sell as much of your product or service as possible? You won’t know until you consider the potential value of restraint and your ability to keep customers coming back, rather than taking everything they have and ruining their lives. , and will be blamed for it later. The term “plausible deniability” comes to mind here.
Which gambling stocks are good to buy right now?
Looking to Wall Street, PENN stock is now the clear leader. With an average price target of $26.07, this “Moderate Buy” rated stock gives investors an upside potential of 45.68% on his stock. On the other hand, his “Strong Buy” rating for DKNG stock and its average price target of $50.93 make it a laggard, with only 13.42% upside potential.
