Sweden is home to many large gambling companies. This includes several international casinos, sports betting sites and numerous game developers. Many of these companies are privately owned, but there are also numerous companies that are listed on the stock exchange and that you can easily buy and sell shares in. In this article, I will take a closer look at how Covid-19 affects Swedish gaming stocks and what to think on right now if you want to invest in Swedish gaming shares. Nowadays, online gambling still continued to be so popular. To discover new casinos in Sweden, you can mobilacasinospel.com.
The impact of COVID-19 on gambling
Covid has given Swedish and international players more free time. Covid limits how mn can spend their time. You cannot spend time with friends, at the cinema, in bars or in restaurants in the same way as before. This is true in Sweden but even more true in other countries such as Norway, Denmark and Great Britain where the restrictions have been much stricter. After all, we Swedes have been relatively reconciled to Covid restrictions.
All this has meant that people have time to spend more time on hobbies and other pleasures at home. This should in principle benefit casino coh gaming companies as people have more time to play and in many cases more money to play for. It is true that many people have become unemployed but the truth is that most people still have their jobs and are earning as much as they did before Covid. But now they have less money to spend on which means they have more money left over at the end of each month. Money that they can in theory play for. Hopefully, most people will use most of this money more responsibly, but it is not difficult to imagine that a larger part of the entertainment budget now goes to games.
Temporary regulation
The Swedish government has foreseen the risk of increased gambling and increased problem gambling. They have therefore temporarily limited how big a welcome bonus casinos can offer to SEK 100 . At the same time, they have limited deposits to SEK 5,000 per week. However, it is uncertain what effect this will have, if any. This is because these rules only cover casinos with a Swedish license and Swedish players are free to choose a foreign casino that lacks a Swedish license instead.
In other words, this regulation can have a negative effect for casinos that have a Swedish license and large exposure to the Swedish market. However, some foreign casinos can see a positive effect from this as Swedish players look around the international market to find casinos that offer large casino bonuses.
Even before Covid, there was data that indicated that more and more Swedes were looking outside the Swedish market to play in casinos that were not bound by the strict Swedish rules and that could offer more and more generous bonuses than casinos with a Swedish license could offer.
In other words, it appears that some betting companies will be able to perform much better than other betting companies during this crisis. Below we will take a look at which betting companies we think are worth investing in and which ones to avoid. Note that these are just my thoughts. I do not recommend that you buy these shares and I do not offer financial advice. Always do your own analysis before choosing to buy a stock and only buy stocks that you think will do well.
Gaming stocks that should be positively affected
The games and casino stocks that I think will be the most exposed to the current situation are large international casinos that have a large presence in markets where the shutdowns have been even more restrictive than in Sweden. Casinos that have a large market share in countries such as England, France and Norway/Denmark should be positively affected.
We also expect game developers to develop well. This is because these cooperate with many casinos and benefit from more people playing casino games online regardless of which casino they choose to play in as long as it is a casino that the developer cooperates with. Game developers are probably the safest option to invest in if you want to invest in casino shares. This as they are not significantly affected if an individual casino loses its license or experiences other problems. Personally, I think game developers will be the best casino stocks to invest in during Covid.
Gaming shares that should not be affected to a significant degree
Well-established casinos that have a large presence on the Swedish market should not be affected by Covid to a significant degree. These companies already have a large amount of players who will likely continue to play in the future. These players may end up playing for more money because they have more time and money to play. The new bonus rules may make it a little more difficult to attract new customers which may affect the growth rate, but this will hopefully be compensated by old players playing more.
It is possible that large well-established casinos such as LeoVegas will benefit from the temporary bonus rules. They no longer have to compete with smaller companies that may offer bigger bonuses.
In that case, large established casino companies may find it easier than normal to recruit new customers because they are so well known and have good reputations in the market. They can compete entirely on their reputation without having to compete with casinos that try to attract big bonuses instead of good reputation.
Gaming stocks to avoid
I think it is best to avoid investing in smaller casinos with a Swedish license that are mainly active in the Swedish market. The biggest reason to invest in less established casinos is that they believe they have great growth potential. The temporary strict bonus rules make it very difficult for smaller casinos to be able to attract a lot of new players unless they can offer something very unique. They lack a positive reputation in the market and cannot stand out by offering large or unique bonuses as bonuses are currently not allowed.
I believe that smaller companies that target consumers directly will find it very difficult to establish themselves in the market as long as the current regulation remains.
Important
Remember that both analyze the company and the services they offer before you invest in casino shares. If you e.g. want to invest in a company that operates casinos, it is important to read through the company's reports and see their financial situation. What income and expenses they have. But it is also very important to see what reputation the casino has among players. This can say a lot about how the company will develop in the future. A small company with little profit can quickly grow big if it has a good reputation in the market. A large casino can lose market share or find it very difficult to grow if it has a bad reputation in the market.
A good way to see what players think about casinos is to visit sites to see what they have to say about the casino. It is also good to visit different casino forums and see what they have to say. You should always visit several different sites and casinos and see what they have to say before you decide to buy a casino share. I also recommend that you visit the company's online casino/casinos and try them yourself. If you don't want to risk losing any money, most casinos let you play with pretend money. This allows you to try the casino without it costing you anything.
If you want to invest in a game developer, you should see what casino sites and casino forums have to say about their games before you invest. Are their games popular and popular or not. Not all games released will be successful but you should avoid investing in companies that develop games that do not meet the high standards that today's players expect.
In particular, you should consider how well the developer's newer games have been received in the market. It doesn't matter if they developed many popular games if their later games fail to attract customers the way their older games did. NetEnt is a good example of this. There are many popular NetEnt games but their newer games do not attract in the same way that NetEnt games once did and this affects the company negatively. They are no longer the obvious choice for online casinos that they once were.