5 Biggest Gambling Affiliates Lose 70% in Stock Market Value

5 Biggest Gambling Affiliates Lose 70% in Stock Market Value

The top five leading gambling affiliates have lost significant value in the stock market over the last two years. Data gathered and calculated GoldenCasinoNews.com indicate that Catena Media (CTM), XLMedia (XLM), Raketech Group (RAKE), Net Gaming Europe (NETG), and Gaming Innovation Group (BETCO) have lost over 70% in stock market value between February 2018 to January 2020.

During the period under review, the US-registered Gaming Innovation Group suffered one of the significant losses in stock value at -87.73%. The group saw its lowest stock value recorded in January 2020 at $6.61. Elsewhere, XLM Media has lost about -75.20% with the lowest value being recorded in January 2020 at $46.5.

Another Malta based firm, Catena Media has witnessed a major drop in stock market value from August 2019 when the stock value was $58. Over the two years, Catena has lost -68.17% in stock value. From the data, Raketech Group Holding and Net Gaming Europe AB have lost – 67.22% and -65.06% in stock value respectively. From the data, Better Collective is the only gambling affiliate to record a profit with a stock value profit of 18.08%. The firm which was publicly listed in July 2018 had its highest stock value was in November 2019 at $90.1.

Monthly volatility rate

The data also reviewed the average monthly volatility of all the five biggest gambling affiliates. XLM media has the highest average at 13.72%. Gaming Innovation Group, which offers business-to-consumer casinos, sports betting, and poker services have the second-highest average volatility rate of 12.42% followed by Catena Media at 11%.

Raketech Group Holding, which offers online-based marketing services for casinos, sports betting, poker, online community, and financial comparison products is among the firms to record a below 10% month on month volatility rate at 9.65%. Net Gaming Europe also has a low volatility rate of 7%. On the other hand, Better Collective has the lowest month on a month’s volatility rate of 6.07%.

The volatility rate helps in determining the risks involved in investing in a certain stock. In most cases, the higher the volatility rate, the riskier the security. In the stock market, volatility is often associated with big swings in either direction

Explaining the drop in stocks

Apart from Denmark’s Better Collective, all other leading gambling affiliates have seen their stock value plumber greatly in 2019. Although most of the gambling affiliates operate in a different environment, all have undergone some specific changes that have affected their stock value. For instance, changes in industry regulations have gone against most of these firms.

For example, Catena Media’s stock price has been on a decline since August 2019. LearnBonds had put some of this down to the departure of Henrik Persson Ekdahl and Andre Lavold from the Board in August 2018.

On the other hand, XLMedia’s share price dropped 30%+ after a move by Google penalized up to 100 sites in their network. The move by Google is expected to have a negative impact on XLMedia’s financial performance, with some putting this figure at $2-3m revenue per year.

Most of the leading gambling affiliates have operations in countries such as Italy, France, and the UK where they are finding it hard to operate following regulatory changes. For example, due to GDPR changes, newsletters cannot be sent to customers. Such rules mean that gambling platforms cannot market their services to customers. Additionally, in the UK, customers cannot deposit funds to online casinos until they undergo the KYC process.

Adam Green, editor at GoldenCasinoNews.com said: “It’s quite shocking to see such a drop in the value of these companies when they are all posting  extremely positive results in the US.”

He went on to say “Investors are clearly more concerned about the growth and sustainability in core European gambling markets for these companies, where compliance and regulation is making things harder to operate in.”