Why Betting On GNOG Stocks Could Prove To Be A Gamble

  • Investors are viewing Golden Nugget Online Gaming (GNOG) as a risky investment.
  • The value of the company is predicated on how well the GNOG app does in new markets.
  • GNOG has a lot of competition in the USA online gambling market.

HOUSTON – Golden Nugget Online Gambling (GNOG) has gone public recently and many investors wonder if the company is a good investment.

GNOG currently sits at $20 per share and the company’s value is going to be predicated on expanding into new markets as well as how good the company does in these new markets.

GNOG does have the issue of dealing with competition, as well as over-saturation of online casino options in key markets such as New Jersey, Pennsylvania, and Nevada.

The Risks Of GNOG Investments

While GNOG is a fairly popular USA online casino, betting on the iGaming provider’s share price gives no guarantees.

Online gambling is a flooded market, and GNOG is not the leading choice in many of the markets it is already available.

GNOG is currently available in New Jersey, Michigan, Pennsylvania, and now West Virginia. While the company is doing successfully in all of these markets, it is not a market leader in any of them and other casino operations have bigger holds.

More states are legalizing online gambling, which would create all the more opportunity for GNOG to expand into their markets, but this same opportunity is available to other USA online gambling providers as well.

This would potentially create a trend of GNOG to never be the first option for many players in multiple thriving markets.

This does not mean the company won’t see growth or cannot make a move to push itself in the front, however.

The company has shown in the past its commitment to expanding its product in an attempt to increase the overall value of the company. Golden Nugget is the first online casino to offer 700 games.

“By bringing our iconic brand into the new Golden Nugget Video Slot, the first of its kind in New Jersey, we continue to demonstrate the never-ending commitment of GoldenNuggetCasino.com to providing New Jersey’s online casino patrons with the best and most diverse online gaming experience,” said Thomas Winter, SVP & General Manager of GNOG. “A week after its launch, the Golden Nugget Video Slot has already been played by more online patrons than any other game we offer, a testament to the players’ attachment to our brand.”

Even with these investments, however, GNOG has not managed to catch up to its competition, and other gambling entities are also investing heavily, further advancing their own iGaming platforms which make it harder for GNOG to compete.

All is not lost, however, as GNOG does not necessarily need to be a market leader in order to be a good investment. The online casino provider simply needs to have consistent growth in order to shine in the market.

This is very possible as well, as the company continues to sign deals with major casinos while also expanding into new territories.

“There’s good reason why investors are excited about Golden Nugget Online Gaming,” said Thomas Niel investment expert. “It may not be the largest online gambling company out there. It may also lack the deep pockets of gaming industry giants like Caesars (NASDAQ:CZR) and MGM (NYSE:MGM). But this “also-ran” doesn’t need to dominate the market for GNOG stock to be a winner in the coming years.”

Like any investment, there is risk when it comes to choosing GNOG. The company could very well lose market value and turn into a poor investment. But there is just as likely a chance that the company grows into one of the bigger iGaming providers.

The risk is there, but so is the potential reward for optimistic investors, making it a true gamble.