It is getting harder to make money in the London-listed ngambling sector.
This note discusses the key investment drivers in this new-ish reality and also looks beyond our usual horizons to see if there is more fun to be had elsewhere.
The investment attractions of the UK-listed online gaming sector have faded somewhat; growth has slowed and revenue and profits have been impacted by regulation. M&A is still a theme but is partly played out and not successful in every case; travelling clearly has been better than arriving. Grey market revenue may be more in favour now but with more markets regulating, we expect the pendulum to swing back in favour of regulated markets. Regulation (and taxation) continue to be an analytical challenge and even positive change (sports betting in the US for example) may come with a requirement to invest ahead of revenue.
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