Playing the stock market is a little like playing poker – if you play your cards right, then you might just get a nice little (or large!) windfall.
There are plenty of stocks to invest in, however, today we’re going to focus on a particularly niche segment: small cap online casino stocks.
What are small cap stocks?
Small cap stands for small market capitalization. What that means in practice is that the company at hand has between $250 million and $2 billion in outstanding shares. Calculating this is done by “multiplying the total number of a company’s outstanding shares by the current market price of one share” (via Investopedia).
Of course, the higher the share price, the less outstanding shares there need to be to make up that $250m-$2b amount.
Stocks with a smaller valuation are dubbed micro caps, then you have nano caps sitting below them. Go up a step and you have mid cap, one further and it’s big cap.
Small cap stocks are generally smaller companies in the market, but still listed on exchanges such as the NASDAQ. Big cap stocks are your stocks like Apple that give your portfolio stability, however small cap stocks, while they carry larger risk, can turn out to be a winner in the long run.
Tech small cap stocks
Tech small cap stocks can be great investments. Think about if you had gotten in on Zoom before it blew up! However, it can be difficult to gauge what’s going to be the next big thing. Who could’ve guessed a pandemic was just around the corner – well, other than Bill Gates of course.
However, that’s why small cap tech stocks can be good – you can find some that skyrocket given a set of circumstances.
Online casino small cap stocks
Online casinos are a sub-section of tech stocks. Now that the US market is opening up, and there are new legislations being rolled out around the world, it could be the time to jump in and find some online casino stocks to invest in. Many of these small cap operators use top-ranked affiliate sites to market their casinos.
International Game Technology PLC
This company are the designers and manufacturers of both physical gaming machines, as well as online apps and services as well.
IGT is exposed to both online and offline operators
You can take a look at the company’s details over at US News & World Report’s Money section.
Scientific Games Corporation
This company deals purely in technology-based services and has a significant suite of gambling and sports wagering software solutions and distribution platforms that are available for various markets.
Again, head on over to US News & World Report’s Money section to see the full lowdown on the company.
Not a small cap stock but it may be time to get in on the action…
We’re going to include one last stock on this list, even though it’s a mid cap stock, simply because it’s seen some significant gains this year.
The Stars Group Inc is home to some of the biggest online gambling names, such as PokerStars, BetStars and Full Tilt, plus also has a foothold in the sportsbook market. Take a look at their details to see if you want to get in on the action.
Before you decide to invest
Always think before you jump. Make sure to read company reports, check the market overall, see what the competition is up to, and whether your pick is an innovator in the space or seem to be just keeping up. Playing the stock market is fun but doing your due diligence with proper research first is going to make it more likely that you get some great payouts in the future.