Should you invest in iGaming companies from Nordics?

Not just yet. This is a very good question any investor should have been pondering last year regarding this year.

Why investing in iGaming companies could be profitable

The internet and technology really are the future, and you only need to look at the top 100 richest people in the world to realise this. In fact, Forbes reported that there are 183 billionaires in tech, and their combined net worth is over $1 trillion. With this figure, it’s obvious how profitable technology can be. The same extends to all fields, including gambling, where the traditional brick and mortar casino is being replaced by the online casino.

Why iGaming companies from the Nordics?

Norwegian gambling website norskcasino.review states that within the Nordics, iGaming and all other forms of gambling are very restricted. In countries like Sweden, Norway and Finland, the only allowed gaming companies are state-owned and private companies are not given a license. This creates a monopoly which the governments can monitor and control closely while locking out other companies.

However, all the Nordic countries are either members of the EU or EEA (European Economic Area) members. As such, the EU has some influence on the laws of the Nordic countries, although it cannot force these laws upon them. This has been going on for years, with the EU urging these Nordic countries to ease their regulations on gambling and perhaps allow private companies to provide similar services.

All of them have been reluctant to ease their strict regulations so far, but the pressure is building and the Nordic governments seem ready to cave in. If this were to happen, then the iGaming companies in the Nordics would certainly thrive, and for various reasons. First, the Nordic residents have been gambling through both the governmental iGaming companies and foreign ones despite the laws prohibiting the latter. These foreign iGaming companies have received a significant amount of income from the Nordics, showing that these areas are willing to spend on gambling.

Second, it is an untapped market with a lot of potential given the low-interest rates in the region. The governments within the Nordics have lowered interest rates to encourage spending, and this is working. Finally, it is much more likely that local Nordic iGaming companies would be given a license ahead of the foreign companies. The Nordics are all about promoting social good, and their governments would prefer if they had a local company receiving the money rather than a foreign one. Thus, it would be better to invest in a local Nordic iGaming company.

Is it a good investment?

The short-term outlook seems bleak since the Nordic governments still seem hesitant to change their laws on gambling. It is therefore unlikely that there will be any changes in the laws regarding gambling and the current monopoly system. On the other hand, experts expect the Nordic governments to concede to pressure if only to quell the struggle. After all, their residents are still engaged in the practice anyway. The only caveat is that such a scenario is still distant and unknown. It could happen this year, as was widely expected or a decade from now.

So, as an investment opportunity, it is much better to wait and see what action is taken before making any investments. Remember to invest only with one of the best Forex brokers!