GAMB - Gambling.com: A Strong Player But Industry Headwinds Warrant Caution

2024-04-17 09:01:44 ET

Summary

• Gambling.com acts as a bridge between gamblers and online gambling businesses, generating revenue through referrals and subscriptions.
• The company has a robust competitive position with a diversified website portfolio and high margins.
• However, the online gambling affiliate industry faces headwinds, including slowing growth, decreasing margins, gambling operator consolidation, and potential regulatory changes.

Introduction

Gambling.com ( GAMB ) connects gamblers with online casinos, acting as a knowledgeable concierge for the industry. Their diverse website network and focus on high-quality content have positioned them well in a competitive landscape. However, considering the industry's expected slowdown, potential regulatory changes, and Gambling.com's own projected decline in growth, a 'Hold' recommendation is warranted.

Business Overview

According to its 20-F , Gambling.com operates in the online gambling industry but is not a casino or betting platform. It operates a network of over 50 websites, each tailored to different user locations and markets. These websites provide information and reviews related to online gambling, like news, odds comparisons, and recommendations. By attracting potential gamblers, Gambling.com connects them with reputable online casinos, sports betting platforms, and fantasy sports options....

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