What does the future hold for casino stocks with the rise of blockchain gambling?

Safe-bet investors may find it ironic that casinos have been easy to recommend lately, thanks to the growing popularity of online gambling.

Investors looking for a safe bet may find it ironic that casinos have been easy to recommend in recent years thanks to the growing popularity of online gambling.

However, disruption is looming in this industry as a result of blockchain technology, and the cryptocurrency-powered upstarts entering the fray alongside traditional brands.

In that context, let’s consider how things could play out if blockchain gambling continues on its current path, and what that means for casino stocks across the board.

The competition is intensifying

The global gambling market is positioned for double-digit growth until at least the end of the decade, which is reassuring for investors already committed to stocks in this segment and looking for long-term gains.

However, the latest reports are based on the status of a year or so ago, and in the fast-moving world of technology, estimates can change quickly due to unforeseen changes.

Blockchain gambling is a good example of this, having emerged from relative obscurity to enter the public consciousness in recent months.

Most importantly, it is not existing casino brands that are catalyzing this rise, but rather a number of new operators. Startups in the cryptocasinosphere may be relatively unknown, but they are already a magnet for investors due to the growth potential they represent.

An in-depth analysis like this Oshi review of CasinosCrypto should give investors better insight into the propositions of these new upstarts. It is only with thorough research that you can hope to find out whether new brands have the ability to deliver value over time or whether a short-term strategy is more suitable.

Volatility is inevitable

While the peaks and troughs of crypto prices may put off some investors, for others this is the whole selling point. How you approach this reality in the market is down to your own preferences and how much risk you are willing to take.

There is no difference in the volatility of token prices from the volatility of blockchain gambling stocks. However, operators are taking steps to mitigate this and insulate themselves, mainly by working with stablecoins instead of unpegged tokens.

Stablecoins have had their own ups and downs in recent weeks, and the market is far from robust. But if you thought that cryptocasinos were built on weak foundations, this is a misconception that deserves to be corrected.

Mainstream adoption is already happening

Another point for casino stock owners to factor into their planning is that there is not a strict distinction between blockchain gambling operators and their traditional equivalents.

In fact, we have already seen the concept of a hybrid cryptocasino emerge, where a gambling site that allows gambling in fiat currency will offer customers the opportunity to deposit on the blockchain-based token of their choice, as long as they are happy for this asset to be converted before they can play.

Support for crypto in the mainstream is still very much a minority affair, but it shows that these businesses are well aware that they may need to leverage this ecosystem more and more, depending on how gaming habits change.

What’s coming

Crypto is not going anywhere, even with volatility disappearing in the market right now. Casinos based on blockchain technology seem particularly likely to survive and thrive in the long term.

The likelihood of established casino stocks being overturned by this move is low, but there’s no doubt that operators will need to be nimble to keep shareholders happy going forward.