A Look at the Revenue of Key Players in the Billion-Dollar Gambling Industry
When understanding the long-term and even short-term potential of an industry, it is important to look at a number of factors. Invariably, a lot of these are all interlinked and have a knock-on effect on others, though what cannot be argued with ultimately is figures.
Revenue makes or breaks an industry, regardless of any other fields on a financial forecast, and often, this is driven by ingenuity that helps continued growth and the emergence of related sectors that supplement a particular industry.
The High-Stakes World of Gambling
Arguably, one of the most dynamic industries in the world today is gambling, something that is driven by numbers and underlined particularly by demand. Without a doubt, the popularity and profitability of the gambling industry cannot be disputed, though it has had to evolve even in the last decade to make sure that it continues to move forward and satisfy consumer (and shareholder) expectations.
At the front end of the industry is the operators themselves, which can be split into two categories: land-based casinos and online operators, with some companies (operators) even owning both types of assets. Most of these in the industry began as physical businesses.
Gambling operators make up some of the most profitable companies in the world and are essentially revenue-generating machines and almost an excuse to print money, even rivaling some of the smaller financial institutions.
Indeed, according to a study by The Business Research Company in 2022, it is estimated that by 2026, the iGaming industry will be worth an eye-watering $840 billion, and that is before the emergence of new markets such as the UAE and other potential new ones that may follow such as money factory that is Saudi Arabia and its unparalleled sovereign wealth fund.
In this blog, we have analyzed the gambling firms with the biggest revenues in the world.
Melco Resorts & Entertainment Limited
Based on the ever-emerging Hong Kong market, this is one entity that has shown significantly promising growth. The casino and resort firm that has assets in both Asia and Europe has central headquarters in Hong Kong, and its last recorded revenue figures stood at $1.49 billion.
At the end of the second quarter in 2022, it posted $2.8 billion in liquidity - a figure that was expected to increase substantially. Furthermore, 30 out of 920 hedge funds that were analyzed by research firm Insider Monkey had stakes in the company, highlighting its sheer potential and magnetism to investors.
Arguably one of the biggest online gambling companies in the world and certainly its native US, DraftKings was a pioneer of the industry on its side of the Atlantic. Operating from its headquarters in Boston, Massachusets, the firm has grown into a national brand, being an online heavyweight in the multiple states that it operates in.
With revenue figures of $1.86 billion, it is understood that 34 of the hedge funds that were analyzed are investors in this. As the US market continues to grow, there are multiple possibilities for DraftKings. Their future strategy may include some big gambling company acquisitions over the next few years.
La Française des Jeux Société anonyme
The French company, as the name suggests, though one that may not be widely known in the industry, is an operator based in Boulogne-Billancourt that specializes in lottery and sports betting.
Recording revenues of $2.8 billion, the company has made most of its income from being the country’s sole lottery operator, which has ultimately been responsible for the growth of its profile.
Wynn Resorts Limited
The NASDAQ-listed conglomerate has been a major player in the gambling industry and the US for a number of decades, while it also has assets globally.
With headquarters in Las Vegas, Nevada, it shares the name of its founder, Steve Wynn, who is somewhat of a figurehead in the industry. Recording the mind-melting revenues of $3.8 billion, some experts like investment bank JP Morgan have estimated that it will continue to be a major player over the next few years.
bet365 Group Ltd
Denise Coates' UK-based online gambling empire, headquartered in Stoke-on-Trent, Staffordshire, has undergone remarkable expansion over the past few decades. Gradually ascending to the upper echelons of the online gambling industry, it consistently occupies a coveted spot in the top percentile of companies in the sector.
With staggering annual revenue figures exceeding $3.8 billion, bet365 success underscores the transformative power of the digital age in reshaping traditional industries and the incredible potential for growth in the realm of online gambling.
Las Vegas Sands Corporation
With resorts and casinos that span the US and Asia, the NYSE (New York Stock Exchange) listed corporation, despite recording significant losses in the Macau gambling market over the last couple of years, mainly due to the global pandemic, still records revenues of $4 billion.
There is hope that it can recover in Asia over the next couple of years, while its largest investor is Robert Pitt - the owner of Steadfast Capital Management hedge fund with 2.5 million shares worth in excess of $90 million.
Another UK-based company, though with over 20 brands under its umbrella, including Ladbrokes, Coral (LadbrokesCoral) and Bwin, Entain is somewhat of a whale in the online gambling industry.
With revenue figures of $5 billion, it has grown significantly over the last decade, especially following multiple key acquisitions in addition to dismissing a $22 billion bid from DraftKings.
PENN Entertainment Inc.
Headquartered in Wyomissing, Pennsylvania, this is the first hybrid gambling company to appear on the list, with multiple land-based assets and a growing online presence.
With revenue figures of a staggering $6.4 billion by the end of the third quarter of 2022, 30 out of 920 hedge funds that were polled by Insider Monkey had invested in the firm.
Its largest investor is Parag Vora’s hedge fund, HG Vora Capital Management, which owns 7.5 million shares that have a value well in excess of $200 million.
Flutter Entertainment PLC
To those in the know, it may not come as too much of a surprise to see the FanDuel owner as one of the highest-ranking on this list. With revenues of a staggering $7.66 billion per year, this is one of the biggest players in the industry.
With corporate headquarters in Dublin, Ireland, the conglomerate has some of the biggest and most strategic brands in the industry under its umbrella, including SkyBet, PaddyPower, Betfair (PaddyPower Betfair), Italian giant Sisal, PokerStars, Tombola and the aforementioned FanDuel - a major player in the US. Its acquisition strategy over the last few years has been one of the cleverest in the industry.
Caesars Entertainment Inc.
A gambling powerhouse, the US company that is headquartered in Reno, Nevada, is one of the household names in the gambling industry. A revenue figure of $10.59 billion ($100 million more than the Gross Domestic Product of Tajikistan, to put that into perspective) is somewhat flabbergasting, and this will continue to rise, according to estimates.
Furthermore, 56 of the hedge funds that were analyzed are invested in Caesars, (Parag) Vora’s HG Vora Capital Management, again being the largest with six million shares, worth over $190 million.
MGM Resorts International
It is more than likely you were wondering if this would make the list the more that you scrolled down. True to its name, it really is a global entity and is renowned for having some of the most exclusive casinos and resorts around the world.
With jaw-dropping revenue figures of $12.55 billion, the Las Vegas-based company, despite suffering during the global pandemic, has bounced back strongly and is on track to grow substantially over the next few years, especially in new markets like the UAE.
Also, 53 hedge funds are invested in the conglomerate, with the largest being Keith Meister’s Corvex Capital, which has 6.6 million shares worth in excess of $195 million.
Its decision to launch BetMGM (in equal partnership with Entain) was a masterstroke, with the brand becoming one of the most popular in the US and growing every year.
What Does This Mean for the Industry Moving Forward?
When you add up the figures from the top 10 gambling operators in this list, the total is in excess of $60 billion, and that excludes other smaller firms around the world.
As the industry continues to grow over the next few years, exacerbated by the emergence of new, exciting and potentially game-changing markets, the revenue possibilities are essentially endless, particularly when you consider how technology is going to evolve and aid the industry.
Considerations also have to be considered for new legal-age customers who will add even more to the top line and make a substantial difference. What is also clear is that investor confidence - hedge funds especially, no doubt, see this as a sector that can provide big returns, not just for them but also for their collective, private investors.
Ultimately, the gambling industry, barring the unprecedented, is here to stay, and revenues will continue to move in just one direction for the foreseeable future.