Digitalization is normally great for ROIC. The gambling industry should be the opposite. Digitalization should lower switching costs and allow gamblers to "shop lines". Casinos will be forced to compete on price crushing their already razor thin margins. $PENN $DKNG
ParrotStock's avatar
That's an interesting take, but it also opens up TAM to people who don't have good access to a casino. I wonder if they counteract each other?
Young Money Capital's avatar
Agreed TAM will expand, probably 5X to go in the US from here, by my calculations. The TAM expansion and digitalization has also allowed many new entrants further fragmenting the industry. TAM expansion does increase competition which is under analyzed in my opinion.
Conor Mac's avatar
Enjoying watch this market unfold in the US. Has long been established in the UK. Although the rules of business are different, regulations, etc, might be an interesting market to look at as the UK is more mature.

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