It’s been said repeatedly that gambling and financial investing are like two peas in a pod. They follow similar fundamental principles, and they can be hugely profitable or incredibly risky. With the growth of the online betting industry in Africa, it has become more popular to invest in bookmakers’ shares, thereby blurring any lines between the two. However, the question is, how safe are these bookmaker stocks?
Four Things to Consider When Determining a Safe Investment
There’s no perfect guarantee of a safe investment since every investment carries a margin of risk. However, there are a variety of factors that can help determine which betting companies are safer to invest in than others.
1. Market Performance – Has The Betting Company Been Growing?
The online betting industry may be growing rapidly, but it’s usually just a handful of bookmakers that hold the bulk of the market share. Although market performance alone isn’t enough to ensure a profitable investment, it’s much safer to invest in companies that have the best track record and have been consistently growing over the years. CheekyPunter provides detailed knowledge of bookmakers through in-depth reviews and other insights. So you can find out which ones are leading Africa’s betting scene.
2. Liquidity – How Easily You Can Get Your Money Out?
Some investments have limited ways for you to retrieve your money because buying and selling doesn’t happen on a daily basis. Others may require you to get the investment provider’s agreement before you can sell. Due to the high volatility of the industry, you’ll want to make sure that you can easily liquidate your bookmaker’s shares when you wish.
3. Gambling Regulations – Is the Investment Regulated?
Unfortunately, not all African countries have regulated gambling laws, and in such jurisdictions, investing in a betting company is definitely not safe. For some countries, certain forms of gambling may be allowed, but with very strict laws that limit the profitability of the business. So, it’s important to ensure that the regulatory environment is favourable before taking an investment in bookmakers’ shares.
4. Get the Opinion of a Financial Advisor
If you are less experienced or don’t really understand the investment on offer, getting the opinion of a financial expert can help you decide on the best potential investment. An advisor not only helps you fully grasp the risks involved with different options, they also help you devise a plan to achieve your investment goals. This often includes portfolio diversification (recommending a mix of investments best suited for you).
Investing in a bookmaker’s shares is like betting on the house. Since the house always wins, you can say this is a safer bet than regular gambling. Whether you want to invest for the short term or the long term, you should consider the points highlighted above to make the best investment decisions that are both satisfying and rewarding.
