For the last two years, companies that invest in technology and online products have been performing well. Fields such as education technology, consumer goods delivery, remote health services, and other internet-driven companies have been recording fast growth. This hasn’t escaped the attention of venture capital firms that are willing to invest hundreds of millions of venture funds in these startups amid inflation.
The current state of online gambling across different US states
Currently, online gambling in the US is focused on sports betting, card games, and games of chance. Gambling is legal at the federal level, but each state is free to legalize it and pass the guiding laws. NJ online casinos were one of the earliest to be legalized, and the sector is one of the fastest growing in the state. Although there is some legal gambling in 48 states, about 30 states have legalized sports betting, and at least 22 have legalized online gambling.
The gambling sector is fairy resilient
Inflation in the US is continuing to hit many sectors hard, and this is driving away many venture capital firms. Many of them are choosing to tread with caution lest they lose big money in startups. Despite these challenges, the gambling sector is seen as a fairly resilient sector amid inflation. Many VC investors prefer to keep away from speculative deals and focus more on stable ones.
According to Lloyd Danzig of Sharp Alpha Advisors, there is a big growth opportunity in the iGaming sector because many investors are focused on tapping into modern iGaming technologies. Sharp Alpha Advisors offers sports betting venture capital funds in the US.
The iGaming sector presents significant growth opportunities because it is a maturing market. It is not only attracting a large number of gamers, but it is also a leading employer in the job market across the US.
Choosing the best-in-class business
Despite the ongoing inflation, some businesses are continually recording growth. These are the sectors in which venture capitalists are willing to invest millions of dollars. According to Peter Heneghan of Bettor Capital, the gambling industry remains bullish despite the bad market conditions. The firm recently agreed to fund millions of dollars to Future Anthem, a company that focuses on AI. Peter reiterated that the company would not stop investing in the gambling sector.
He noted the iGaming sector is consistently expanding as more states legalize betting, and legislators create favorable laws. His company is prepared to fund the sector for the remaining part of 2022 and into 2023. Despite this, he also noted the firm has to measure quality against quantity before financing. This will help them focus only on the best-in-class investments that have promising growth both currently and in the future.
Bettor Capital believes B2B firms will soon have huge opportunities as they invest more in increasing sales, improving customer satisfaction, and providing better products. Considering the current situation, there is high hope for startups wishing to invest in the gambling market. However, the investors need to prove to VC firms that they have a strong, viable deal that promises a positive return and a great future.