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Compared! How are ASX gaming share prices performing?

gaming asx share price rise represented by slot machine paying jackpot
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We’re now 12 months on from the beginning of the COVID pandemic in Australia and it’s prime-time to see just how much ASX gaming share prices have been booming over the past year.

News that US investment giant Blackstone has offered to take over Crown Resorts Ltd (ASX: CWN) has sent the resort operator’s share price surging this week

It’s been another strong month for Australian gaming and lottery companies, which have been leading the consumer cyclical sector. Almost all companies and resort operators have experienced strong results since the COVID-19 pandemic outbreak, which has led to a boom in gambling revenues across Australia.

We break down all the performers below.

Crown, Star Entertainment and SkyCity share prices on watch

Crown 

Crown’s share price has fallen 1.63% today after rocketing more than $2 in three days due to the Blackstone offer. Crown’s price-earnings ratio (P/E) of 82 and market capitalisation of $8 billion have attracted the interest of the US equity investors.

Star Entertainment Group Ltd (ASX: SGR) 

Crown rivals Star Entertainment has also fallen 2.76% today against gains of 5.43% this month, with a P/E ratio of -29 showing the difference in market sentiment between the two resort providers.

Star’s share price has been a very strong performer recently, up 140% over the past 12 months. Its performance is 45% greater than the consumer cyclical sector and 91% stronger than the S&P/ASX 200 Index (ASX: XJO). 

Skycity Entertainment Group Ltd (ASX: SKC) 

SkyCity has also dropped 1.4% today against very strong all-round performances over the past 12 months. The SkyCity share price has gained 0.95% this week, 19% this month, 7% in 2021 year-to-date (YTD) and 158% over the past 12 months.

That’s a return 63% greater than its sector and 110% better than the ASX 200.

A look at ASX gaming share prices

PointsBet Holdings Ltd (ASX: PBH) 

The PointsBet share price dropped 3% today but has a whopping 1,146% one-year return, from $1.19 in April 2020 to $13.80 per share today. The wagering services operator has dropped a further 16% this month, compared to 2021 gains of 16%. 

It goes without saying that the $2 billion market cap company has been a very strong performer recently, however PointsBet does appear to be undergoing a general share price correction, with steady declines since a high of more than $17 in February.

Jumbo Interactive Ltd (ASX: JIN) 

One of the few gambling shares up today, Jumbo has risen 1.2% against overall 3% falls this week. The online and mobile lottery retailer has increased its share price by 39% over the past 12 months, with its market cap reaching $800 million.

However, its overall market performance of late has been one of the weaker in the category. Jumbo has dropped 9% this month and 7% in 2021. Unsurprisingly, that leaves it down 55% against the high-performing sector and 8% down against the ASX 200.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price rose by another 1.8% today, increasing its figures to 5% this week, 7% this month, and 24% in 2021 YTD. Tabcorp’s strong share price gains (up more than 120% over the past 12 months) have beaten the sector by 30% and the ASX 200 by 77%.

As one of Australia’s major players in this space, Tabcorp’s high-profile portfolio of brands including TAB, Keno, The Lott, George, Max, TGS, eBET, and Sky Racing make it a key indicator of the overall strength of the Australian gaming industry in general.

Aristocrat Leisure Ltd (ASX: ALL)

Finally, gambling technology designer and distributor Aristocrat is down 1% today and 1% this week. The Aristocrat share price has also led the gaming charge over the past 12 months, rising from a price of $17 in April 2020 to more than $30 today. 

Aristocrat shares are up 5% this month since announcing on 3 March that it had settled a US lawsuit over some of its digital social games, which has added to its 10% increases in 2021 YTD. 

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Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pointsbet Holdings Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Crown Resorts Limited, Pointsbet Holdings Ltd, and Sky City Entertainment Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Lucas Radbourne