The Intersection of Sport and Online Casinos: What Investors Should Know

The Intersection of Sport and Online Casinos: What Investors Should Know

The rise of the smartphone promised to usher in a new dawn in many areas of life, and the way in which we play games and entertain ourselves is certainly at the top of that list. Whether it’s gambling, video games, live sports, or streaming video, it’s safe to say there have been no shortage of advancements in recent years. This acceleration of new forms of entertainment has created a dynamic market for investors who are looking to profit by backing the next big thing. The intersection of sport and online casinos is a particularly interesting example

What does the intersection look like?

20 years ago betting on football or rugby would involve walking into a betting shop and trying to predict the winner, the final score, and the scorers. In-play betting changed all of this by allowing players to bet using dynamic odds that changed during the course of the game. The integration of live betting systems with user-friendly mobile apps led to a raft of new interactive betting features, each designed to be used while simultaneously watching the match.

In many ways, sports and gambling have always had a natural synergy because they allow fans to exercise some of their own competitive sides without taking to the pitch. Marketers have long been taking advantage of this through a range of financial sports sponsorship strategies, many of which are now looking to also embrace the shift to crypto-based finance.

What is the opportunity for investors?

Investors who want to be able to benefit from the opportunities that arise when technology bridges the gap between two previously distinct industries should take note here. While we don’t wish to endorse any particular stock, brand, or investment strategy, we do believe there is a lot to be said for understanding the overall trajectory.

The trend towards greater integration between sports and betting is very much a global one, with the US leading the way. Major sports leagues like the UFC now have betting sponsors that feature heavily during live broadcasts. By showing live odds and providing multiple touchpoints, they smooth the transition from the TV to the mobile app.

An investment in an online casino that is able to gain similar exposure and PR would potentially come with a dual benefit. Firstly, the stock could be appreciated due to organic growth in the business. And secondly, the stock price could also be driven up as a result of a positive association with a growing sports league, team, or franchise

What does the global picture look like?

Sites like AskGamblers South Africa introduce players to the best online casinos in South Africa, as well as those that offer new modes of gameplay. These types of sites are also a way for players to find new avenues of entertainment, with many companies in places like the UK now developing functionality for betting on virtual sport. This allows players to work on their strategies and exercise their competitive side without the need for live sport to be in progress at that precise moment.

The point here is that the reach of interconnected sports and online casinos is global, and with that comes a global audience. Investors who want to be able to diversify their risk portfolio by investing in a variety of different geographical locations could benefit from this level of diversity.

Local markets could also generate new breakthroughs in viral gameplay, while major sporting events that capture the imagination of certain regions could also have a positive impact. A strategy used by many investors is to hedge investments made in startups against larger, more stable investments made in established names and brands

The importance of perspective

Investors, like anyone, can be led by their heart rather than their heads at times. While passion is never a bad thing, investing in a casino-sport partnership purely out of love of the game may not be the best long-term strategy. Not every part of this new industry will lead to wealth creation for investors, and nor should we expect it to. There will always be the risk of a startup not delivering on its initial promise, even if it’s able to partner with a major sports league.

The increasingly interconnected nature of this new crossover industry can also lead to unexpected consequences. A sports star who is defamed or disgraced due to off-pitch issues could potentially damage the reputation of an online casino that is sponsoring them. The knock-on impact that this would have on the share price can be notoriously hard to predict.

Final thoughts

Investments in the interconnected world of live sports and online casinos require a big-picture approach based on numerical analysis. Looking for a combination of established name recognition and credibility alongside growth potential and new niches would be advisable. The interplay between sports teams and online casinos in terms of sponsorship should also be factored into the equation to accurately assess the overall risk. And finally, actively looking for spikes in value that occur during major sporting events would be beneficial.