From the 2024 stock market opening, iGaming share price movement is as follows: PTEC.L (+4.49%), ALL.AX (+9.26 %), LNW (+23.12%), 888.L (-9.45%), EVO.ST (+8.69%), and INSE (-7.01%). (Image by Mohamed Hassan from Pixabay)
Latin America is home to new business opportunities for the iGaming industry.
The market has slowly matured, and regulatory commissions have risen to the challenge of making online gambling safe and profitable. Many of these countries have populations over 40 million, with Millennials and Gen Z making up most of the inhabitants, the latest focus for the iGaming industry.
The regulatory status of online gambling is very inconsistent from country to country. Some countries outright ban gambling (including online gambling), some only allow lotteries, and some allow gambling in both regulated and unregulated nations.
Brazil is the biggest market, with over 200 million people, with the largest demographic being 61% between the ages of 18 and 60. It is estimated that 64% of the population has access to mobile phones, which is a huge advantage for sportsbook operators as the country is football crazy.
It is estimated that Brazil will generate around USD 1.9b in 2024 from gambling, with 78% of that coming from sports betting (football). The government has approved the regulation of sports betting and gambling, with accompanying tax laws. Market analysts expect the Brazilian market to increase in revenue by 16% annually for the next three years.
Argentina is another important market for online gambling, with a population of over 40m and around 75% of people with access to mobile technology. The country regulates gambling from province to province, and operators can offer all forms of gambling in fully regulated regions. The issue these companies face when operating in Argentina is the tax laws. Federal tax laws allow 3 forms of taxes: 41.5% income tax, 21% value-added tax and a tax on deposits/debits at a rate of 0.6%. Certain iGaming companies may find this a barrier to entry, but Bet365 and 888 Holdings have operated there since 2021 through local partnerships.
One of the biggest markets is Columbia, which has a population of over 50m and 56% mobile accessibility. The country has the 4th largest economy in South America and also loves its football. Historically, Columbia was the first country in Latin America to regulate online gambling (2016). Taxes are more reasonable, operators only play 15% if the provide a return percentage of 83%… if not, the tax increases to 17%. There are yearly licensing fees of around USD 200k, and concession ownership is levied a 1% fee of the NGR (Net Gaming Revenue).
As the iGaming companies include Latin America in their future strategic business plans, investors should see added value and hopefully an increase in share value from additional revenue streams in this growing market.
This bi-monthly report will examine Playtech, Aristocrat, Light & Wonder, Evolution, 888 Holdings, and Inspired Entertainment to see where they may be headed in the coming weeks.
Gambling Company Share Price Reports: For the previous review of the latest gambling share prices on 22 MArch 2024 visit the ‘Gambling Share Prices 2024 – Issue 5‘ update.
Gambling Share Prices Update March 2024 – Part 2
Playtech – (PTEC.L)
- Playtech has been in a horizontal holding pattern for the last month. The company’s share price has not fluctuated 2% (either way) over the last couple of weeks. Most PTEC investors are institutional, which could explain the stagnant share price. These investors may not have confidence in the company and are not actively buying stock. Playtech stock opened down today and is trading at 465.40 GBX, with strong resistance at 462 GBX.
Current Price: 465.40 GBX
2 Jan 2024 Open: 445.40 GBX
(+20.00 GBX | +4.49%)
3 Jan 2023 Open: 506.50 GBX
(-41.10 GBX | -8.11%)
Aristocrat – (ALL.AX)
Aristocrat – (ALL.AX)- Aristocrat suffered an almost 4% drop in share price on March 14th, after they accused an industry rival of stealing/plagiarizing one of their most popular games. ALL filed a suit against Light & Wonder that states that LNW embezzled trade secrets for its Dragon Link game from staff that had resigned years before but are now working at LNW. Since filing the lawsuit, ALL share price has dropped almost 4% and is currently trading at 44.36 AUD.
Current Price: 44.36 AUD
2 Jan 2024 Open: 40.60 AUD
(+3.76 AUD | +9.26%)
3 Jan 2023 Open: 30.66 AUD
(+13.70 AUD | +44.70%)
Light & Wonder – (LNW)
- Light & Wonder has a looming court case, alleging that they stole Aristocrat proprietary technology, but this has not affected the share price. The company hit an all-time high on March 1st of 103.11 USD but has come off, currently trading at 100.41 USD. A consensus of market analysts believe that LNW is undervalued and the stock price should be 21% higher than it is now.
Current Price: 100.41 USD
2 Jan 2024 Open: 81.56 USD
(+18.85 USD | +23.12%)
3 Jan 2023 Open: 56.95 USD
(+43.46 USD | +76.34%)
888 Holdings – (888.L)
888 Holdings – (888.L)- The London listed 888 Holdings has announced that the deal they signed with Sports Illustrated in 2021 has ended. The CEO of 888 stated that the commitment to the U.S. market would require a huge investment to meet “economies of scale” to be profitable in America. In January, the company said they expected revenue and profits to be lower (single digits) in 2024 and are looking at different strategies to cut costs. The share price has been flat the last two weeks and is currently trading at 82.40 GBX.
Current Price: 82.40 GBX
2 Jan 2024 Open: 91.00 GBX
(-8.60 GBX | -9.45%)
3 Jan 2023 Open: 84.60 GBX
(-2.20 GBX | -2.60%)
Evolution – (EVO.ST)
- After posting their full year 2023 earnings a month ago, the share price is up 5%. The company met market expectations for revenue and net income but faltered with profit margins. The company also in a legal battle for allegedly committing securities fraud for non-compliant regulatory issues stemming from making false statements to customers. The share price is presently in a bullish trend and looks poised to hit monthly highs. The stock opened down today but is trading in positive territory at 1,367.80 SEK.
Current Price: 1,323.20 SEK
2 Jan 2024 Open: 1,217.40 SEK
(+105.80 SEK | +8.69%)
3 Jan 2023 Open: 1,028.00 SEK
(+295.20 SEK | +28.71%)
Inspired Entertainment – (INSE)
- After delaying their Q3 2023 report last September and then posting mixed results a month ago, INSEs’ share price has moderately declined. Yesterday, INSE stated that they would post their year end 2023 on or before April 15th, 2024. The stock closed trading at 9.15 USD on Friday and is in an upward trend.
Current Price: 9.15 USD
2 Jan 2024 Open: 9.84 USD
(-0.69 USD | -7.01%)
3 Jan 2023 Open: 12.85 USD
(-3.70 USD | -28.79%)
Disclaimer: The opinions written in this article covering iGaming stocks and shares are our view on the market. This is not financial advice. For professional investment advice please visit sites like Investopedia or Investing.com. These sites are professional advisors for those interest in investing in the stock markets.
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