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DATA SHOWS REASONS FOR OPTIMISM

The GAMING INDUSTRY: A safe, stable sector full of opportunities

 
Gambling is a sector that has undergone enormous technological, social and economic changes over the last two decades, and is currently experiencing a significant regulatory challenge as it tries to catch up on its reputation. His response to the global crisis caused by Covid-19 has shown that we are facing a branch of the global economy, safe, stable and full of opportunities.

In this article, in addition to pointing out the various ways in which the gaming sector can continue to develop and sharpen its competitive advantages developed over the years, we will try to demonstrate with data the solvency with which the complex trance involved in dealing with the problems has been resolved. consequences of the Coronavirus pandemic that we have suffered since the beginning of 2020.
  • Financial robustness and growth in the value of companies
  • Success in betting on technology
  • Trust environment in the future
  • Challenges in the short term
  • The situation in Spain
INFOPLAY |

1- Financial robustness and growth in the value of companies

The strongest argument is the one we developed first. And it is none other than the demonstrable and evident strength of the large companies in the sector.

Reviewing the evolution of the London Stock Exchange and of the main US indices and of the European countries with large listed corporations, we observe that the main operators have fully recovered from the first moments and the cataclysm caused in March by Covid-19.



With the prices of Flutter Entertainment, 888 Holdings or William Hill in the lead, we can see how well their stocks have performed and in an almost identical way, with the long-awaited recovery in the shape of a "V", although the revaluation of their shares continues to skyrocket.

In the United States, face-to-face operators have taken flight more moderately, but investors also enjoy a clear improvement in the value of companies such as MGM Resort or Sheldon Adelson's Las Vegas Sands ... in which perhaps it has even more merit due to the uncertainty that elements such as the next presidential elections in the United States or the rumors of an imminent vaccine generate in the face-to-face sector.



Also in the United States, the American Gaming Association (AGA) has supported these promising data provided by the Stock Exchanges with a recent publication that announces that the online gaming sector in the country has generated 254% more revenue between the last month of the second quarter of the year and the first two of the third (June, July and August), coinciding with the end of the break in professional sports.

On a face-to-face level, the AGA also confirms that Las Vegas and Atlantic City are also recovering from the 78.8% drop in their revenues in the second quarter.



2- Success in "DIGITAL trust

It is a certainty that the future of the sector has been reactivated to a great extent for years thanks to this aspect. Virtual reality, new entertainment products or streaming in online casinos at the gates of the generalization of the "5G era" have made traditional online entertainment platforms an important part of face-to-face business.

The data obtained in the first half of the year shows that all these online news are making a dent in the tastes of customers in regulated gaming markets such as Italy, where the growth in products that we have recently had in Spain - virtual sports- it has been spectacular.

If in the previous section we pointed out large operators both in person and online and their evolution in the price of their shares; something much clearer occurs with online gambling providers and developers, which are companies that have made an important quality leap in their value.

In just five months, Netent has multiplied its value on the stock market by 3; the same trend observed in YGGDRAZIL Group PCL and other competitors in this segment. Kambi has also managed to almost triple its price; demonstrating that these important players in the online setcor -also increasingly necessary in the face-to-face-, have consolidated their position in the Industry.



The same has happened with data and information providers and sports content, such as Sportradar or Betgenius. And that despite being almost 3 months without professional sports.

There is no doubt: we are in the time to bet on technology and this formula has been a success. And also while it is verified day by day that the synergies of the different products make progress in this field inevitable; with, for example, eSports increasingly focused on realism, transferring this need to gaming operators but even to sports broadcasts on television.

In this way, the foundations of the economies of the entire planet have been shaken, the companies that offer digital services and in our sector those that bring entertainment to our devices, have managed to stand out and grow.

3 - There is a lot of confidence

Although some did not expect it, the sectorial confidence in aspects such as clients, suppliers or in the capacity to be used again, is quite optimistic. We see it in European studies where a bright future is anticipated in the medium term. And it is that up to 47% of the experts consulted believe that the general climate of the gaming and egaming industry for the next 12 months is "good".

The main reason for this forecast is that the ability - especially in the online sector - to cover the change in demand for the products that customers prefer in this new scenario has been demonstrated.

These results serve as a theoretical barometer of the situation and future of the industry, but also if we go to portals such as Pentasia -the leading company for the recruitment of professionals in the sector- we also check how they have been hired again; and aspects such as the relocation of young specialists in technological activities from other sectors such as videogames is a reality that confirms that the gaming sector is welcoming more specialized employees.

The potential of egaming also continues to show itself capable of providing a fertile ground for business creation and many technology entrepreneurs have managed to become visionary founders of successful companies in this sector.

4 - The Challenges that come in a sector in transformation

Dealing with the challenges in a sector such as Gaming is born from an almost cultural need, such as attending to changes in consumer tastes, so common in the entertainment segment. Fortunately, problem solving is in the DNA of the gaming industry. And investors know it.

Certainly the social and fiscal environment is quite hostile, something that added to the persistence of a series of psychological barriers based on stereotypes or moral principles, but this cannot serve to ignore the potential of the sector. So as the main challenge, perhaps it is to improve the perception of the sector among the business community, the political class and society ... something that needs some improvement through the narrative.

But even with rumors of very aggressive legislation, social policies in the labor field and the digital transition have served for years to prevent growth from being dragged down for years and it seems clear that the coronavirus hack has not changed the situation, placing the gaming sector in a privileged position to demonstrate its ability and adapt to the new reality.


5 - The case of Spain

Although governments and central banks are fighting the danger of a collapse in consumption, if Spain does its homework, a sector like ours can strengthen itself and in the short term continue to promote job creation and business growth. And it is that as it happens all over the world, gaming is a committed, digital and industrial sector.

In our country, especially at the face-to-face level, it is feared that the outbreaks will cause a greater drop in the PIB in 2020, but leisure spaces have been able to adapt to the reality that marks the fight against Covid-19 and the outbreak of the The coronavirus pandemic has been noticed in tourist areas and where the hospitality industry has great weight. We are aware that the gaming sector cannot stay on the sidelines of news such as that European air traffic is plummeting by 60.5% and that in a country where tourism accounts for 18% of GDP (PIB), things are more complicated; but the response of the institutions is presented as a form of necessary protection. We have seen it in the United Kingdom and even in the tax benefits granted by Trump to companies ...


In any case, the companies that have had the best performance and that can deal with situations like the current one tend to coincide with those that have a greater concern for the health of their workers and for helping the communities where they operate; something in which the national gaming industry is a standard bearer.

If institutions do their homework, a sector like ours can be strengthened while boosting job creation and growth, so with a modernizing drive, the use made of technology and capacities already demonstrated by the sector to rise from the crisis of almost a decade ago, they become key elements to stay afloat in these tough times ...

18+ | Juegoseguro.es – Jugarbien.es

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