Over the last five or six years, the gambling industry has been one of the hottest industries in the world. Yes, that includes the UK where gambling has been a popular form of adult entertainment for centuries.
Of course, the driving force behind the industry’s success over these last few years has been the proliferation of online gambling. If the COVID19 pandemic did nothing else, it could certainly be said it was the catalyst that drove millions of UK residents to the internet in search of ways to stay entertained while locked down at home. Online gambling was a top option of choice.
Today, some industry analysts are quick to point out that as many as 12 million UK residents now have some type of online gambling account. This has proven to be a boon throughout the UK gambling industry as gambling operators and software developers are really reaping the benefits of this growth.
The Importance of iGaming to the Overall UK Online Industry
As online gambling technology improves the online gambling experience, it is sure to appeal to a new generation of “risk-takers” who have always been curious about gambling but unwilling to make the trek to any of the UK’s retail casinos or betting shops. To be clear, there is great appeal to the notion someone can gamble on the internet from the comfort of home without having to deal with the scrutiny of others. This alone is the primary reason the gambling industry is entering a new phase of explosive growth.
If there are doubts about the trajectory of the UK gambling industry over the next few years, the UK Gambling Commission (UKGC) has been signalling what they think. In anticipation of this explosive growth, they have been pushing hard on UK licensed online gambling operators to support responsible gambling initiatives like the GamStop Self-exclusion program.
In the eyes of the UKGC, the importance of GamStop membership cannot be overstated. They strongly feel there needs to be a viable way for problem gamblers to protect themselves from the onslaught of problem gambling issues.
Below, we will take a look at some of the UK gambling companies that are worthy of investment by investors as they benefit from the aforementioned growth. The list will include top licensed UK operators that are subscribed to GamStop, and perhaps a company or two that hasn’t yet secured a UKGC license or GamStop membership.
Regarding the latter, the Non GamStop Odds team reviews British casino operators that aren’t on GamStop for viability as safe and secure online gambling options.
Top Five (5) UK Gambling Stocks
The following information details what could be considered the top five (5) gambling stocks in which investors should consider investing. On the list will be companies that offer retail/online gambling services as well as companies that are aligned as software developers that are providing gambling content for UK operators and operators across the world. The criteria for making this list are recent stock performance and consistent results year-over-year.
Note: Many of these entries have taken a significant price hit in 2022 due to inflation/recession concerns. However, they all figure to rebound strongly as the world’s economy improves over the next year or two.
1. Entain Holdings (Symb: ENT)
Entain (formerly GVC Holdings) was founded in 2004, making it one of the youngest companies on this list. While the company has some presence at the retail level, its digital holdings (bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet) have become the company’s bread and butter. The company is part of the elite FTSE 100 Index and currently trades on the London Stock Exchange at a current price of £1,204.50 per share.
It’s worth noting that Entain received an offer in 2021 from the American retail/online gambling force MGM Resorts at a valuation of $11 billion USD.
2. Flutter Entertainment (Symb: FLTR)
Flutter has made a meteoric rise within the UK gambling industry since its entry into the market in 2016. While targeting acquisitions as a means of growth, Flutter currently owns top retail/online gambling concerns like Betfair, FanDuel, Fox Bet, Full Tilt Poker, Paddy Power, PokerStars, Sky Bet, Sportsbet.com.au, and TVG Network (horse racing).
Flutter is a component of the FTSE 100 Index and currently trades on the London Stock Exchange at a current price of £81.72 per share.
3. Rank Group (Symb: RNK)
Founded in 1995 as a motion picture industry concern, the Rank Group transitioned to the UK gambling industry in 2006. As the owner of over 60 retail casinos (Grosvenor brand) and 100 bingo clubs (Mecca Bingo brand) worldwide, the company has recently increased its presence in the online casino community through heavy investment in the company’s online gambling flagship Rank Interactive.
The company trades on the London Stock exchange at a current price of £92.60 per share.
4. Playtech (Symb: PTEC)
Founded in 1999, Playtech has consistently been one of the online gambling industry’s top software developers. It has been that way since the company’s begging with the company focusing on Gaming B2B and Gaming B2C segments. Among the company’s extensive library of online casino games is its line of Marvel Comics-themed games like Iron Man I, II, and III, Hulk, The Avengers, and Thor.
The company is currently listed as a component of the FTSE 250 Index and trades at a price of £479.00 on the London Stock Exchange.
5. 888 Holdings (Symb: PLC (888))
After 25 years in the UK gambling industry, 888 Holdings is generally considered one of the industry’s most popular brands. The company owns and operates popular gambling websites like 888sport, 888casino, and 888poker. They are also heavily invested in the UK online bingo community through the company’s Wink Bingo, Posh Bingo, Tasty Bingo, and RedBus Bingo brands to name a few.
888 Holding PLC holds a place on the FTSE 250 Index and trades on the London Stock Exchange at a current price of £141.80 per share.
