Table 1 is a purely quantitative scoring table of 20 globally listed companies in the online and sports betting industry that are investable. The scoring table considers the following six quantitative aspects:
In investing, the “house” does not always win because some betting companies may be unprofitable or suffer from quantitative and qualitative pitfalls. For the odds to be favourable, investors should stake their bets on companies with favourable financials. To assess whether a company has favourable financials, investors should attempt to understand the business first by conducting qualitative analysis, followed by quantitative analysis, or vice-versa. The most crucial aspect for investors is to judge whether the particular company or industry is suitable for their risk profile and not invest in a company simply because it is “cheap” or “undervalued”, as these are relative and subjective terms.
The Edge Singapore has filtered companies for investors wishing to gain exposure in the online and sports betting industry. The list of stocks excludes large casino and entertainment companies, as generally, a portion of the revenue and income generated is derived from nonbetting segments such as hotels, malls, and other entertainment. Mainly, the two companies that manage horse racing and betting are Nasdaq-listed Canterbury Park Holding and Churchill Downs. The rest of the companies have some exposure to horse, online, or sports betting.
