Publicly traded companies in the iGaming sector have faced significant losses, totaling around $34 billion in market capitalization over the past nine months. This downturn is attributed to several key changes within the industry.
One of the primary pressures on operators is increasing regulation. The UK has raised its online casino tax from 21% to 40%, while Brazil has placed restrictions on approximately 85 licensed operators.
Additionally, the competitive landscape is shifting with the rise of new formats. Prediction markets are intensifying competition against traditional bookmakers, with Kalshi now valued at $40 billion.
The decline in valuations is also accelerating consolidation within the sector. While the enterprise value of the largest public companies has decreased by 23%, major investors are increasing their stakes, and Lottomatica is merging with CIRSA.
For a comprehensive overview of who is losing ground, who is benefiting from these changes, and the future direction of the iGaming market, read the full report from AVC.