The sports and gambling industry is one of the fastest-growing sectors in the world. The exponential growth happened mostly during the Covid-19 pandemic as most people took advantage of online sports. In this article, we will look at the three best UK gambling stocks to invest in.
Flutter Entertainment (LON: FLTR) is a sports and gambling stock that is a member of the FTSE 100 index. It has a market capitalisation of more than £19.7 billion, making it the biggest gambling company in the UK.
It owns some of the best-known brands in the UK like PaddyPower, Betfair, FoxBet, Pokerstars, and FoxBet among others. Still, its most valuable brand is known as Fanduel, which is an American fantasy sports and betting company.
Flutter Entertainment’s business has been growing rapidly. For example, the company’s revenue jumped from £2.4 billion in 2019 to more than £4.4 billion in 2020. Most importantly, the Flutter share price will likely do well if the company decides to spin off Fanduel. Analysts believe that Fanduel itself is worth substantially higher as a separate company.
Still, the Flutter Entertainment share price has declined by more than 35% from its highest level this year. This performance is mostly because investors expect that the growth will start slowing down. Still, in the future, I expect that the FLTR share price will do relatively well.
Entain (LON: ENT) is the second-biggest sports and gaming company in the FTSE 100. The company has a market value of more than £9.7 billion. It owns some of the best-known brands like Bwin, Ladbrokes, Coral, Betboo, PartyPoker, and Poker Casino among others.
Entain has been in the spotlight in the past few months. A few months ago, the company turned down a £13 billion acquisition offer by MGM. Later on, DraftKings made an offer for £20 billion. Draftkings called off the offer because of a joint venture that exist between Entain and MGM.
The Entain share price has dropped by about 36% from its highest level this year as investors remain disappointed that the deal failed to materialize. Entain had more than £3.8 billion in revenue in 2020.
888 Holdings is a leading operator of online gambling products. The company is a member of the FTSE 250 index and has a market capitalization of more than £1 billion. It generates more than £800 million in annual revenue.
888 Holdings owns brands like 888 Sports, a leading sports betting company. It also owns 888 Poker and 88 Bingo. This week, the company said that it will sell its Bingo business in a deal valued at more than $50 million. The company also acquired William Hill International in a deal valued at more than £2.2 billion.
Like Flutter and Entain, the 888 share price has collapsed by 40% from the YTD high. This could be a discount if the stock rebounds.
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