Casinos & Gaming Sub-Industry Dividends Casino and gaming companies own and operate gaming, hospitality and entertainment resorts. They also operate hotels, casual and fine dining restaurants, nightclubs, cinemas, retail space and other leisure amenities. The securities listed in this page are organized into two tables. Overall positive sentiment can surely be felt for the pure-play ETF VanEck Vectors Gaming ETF BJK which added 1.8% on Oct 31. In any case, the Zacks Industry Rank is in the top 32%.
With casino equities being among the most vulnerable and positively levered to happenings in the war against the coronavirus, the VanEck Vectors Gaming ETF (NasdaqGM: BJK) is a prime example of an ETF that’s been in focus this year. BJK tries to reflect the performance of the MVIS Global Gaming Index. VanEck's gaming ETF provides more comfortable exposure to MGM stock By Will Ashworth, InvestorPlace Contributor Jun 18, 2020, 8:01 am EST June 17, 2020. VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) This fund offers exposure to global companies involved in video game development, esports, and related hardware and software.
With casino equities being among the most vulnerable and positively levered to happenings in the war against the coronavirus, the VanEck Vectors Gaming ETF (NasdaqGM: BJK) is a prime example of an ETF that’s been in focus this year.
BJK tries to reflect the performance of the MVIS Global Gaming Index. For index eligibility, companies must generate at least 50% of their revenues from gaming. Gaming includes casinos and casino hotels, sports betting (including internet gambling and racetracks), and lottery services as well as gaming services, gaming technology, and gaming equipment.
Recently, BJK is rallying as casinos in Las Vegas and regional gaming venues reopen, but there are still catalysts to power BJK, particularly if Macau, the world’s largest gambling market, rebounds in earnest in the fourth quarter.
“Macau, the world’s largest gaming center, isn’t really reopened. Sure, one can gain entry to the plethora of casinos there. It’s getting to the Special Administrative Region (SAR) that’s difficult because mainland China and Hong Kong are still restricting travel to Macau,” according to InvestorPlace. “As such, gaming revenue there is at rock bottom levels. However, Macau operators believe there’s pent up demand and when travel bans are relaxed, the floodgates will open and gamblers will again flock to the casino mecca.”
Betting on BJK
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One of the primary catalysts for BJK is increased legalization of sports betting here in the U.S. Currently, 23 states are legal sports wagering states with 18 being operational. The driver for BJK here in the States is internet casinos or iGaming. Both of these markets are expected to swell to $20 billion in the coming years as more states look for new ways of generating revenue.
During the multi-month shutdown forced by the virus, states’ collection of gas, sales, and gaming taxes were in trouble. Now coffers are running light, prompting some analysts to say more states will approve internet casinos and/or sports betting as avenues for generating revenue.
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Several states, including Louisiana, Maryland, South Dakota, and Virginia, are slated to vote on sports betting ballot initiatives in November.
“As for iGaming, data suggest that’s a booming business. In Pennsylvania, a market in which DraftKings operates, online slot machine handle topped $1 billion for the first time in May, while table games saw $778.5 million in action, up to $150 million from April, according to the Pennsylvania Gaming Control Board (PGCB),” reports Casino.org.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's prospectus. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Risks include those related to investments in the highly-competitive sports betting industry, including from illegal or unregulated companies. Expansion of sports betting (both regulated and unregulated), including the award of additional licenses or expansion or relocation of existing sports betting companies, and competition from other leisure and entertainment activities, could impact these companies' finances. Small and midcapitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments are concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Investments in foreign securities involve social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more develop countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks.