Can you bet on the stock market? This is a question that has plagued bettors since the first appearance of the stock market. And every time someone has tried to allow this type of activity, governments around the world have responded in much the same way – by blocking such operations and creating laws that hinder the speculative nature of these activities.
“Last time someone tried to do this, it turned out to be a scam worth millions. I’m talking about binary options. This type of hobby convinced customers that it was something like betting on the stock market, but in my opinion, it was nothing but a ploy to deceive customers,” says Anna Rosak (read more about her here). This gambling specialist from Poland has extensive knowledge of the casino industry and doubts that even the incredibly popular forex platforms will survive in the years to come.
Keep Assets and Game Separate
“The thing is quite simple. If you want to buy and sell stocks, CFDs, etc., this is a completely legitimate way to use your money. The same goes for games of chance. Very few governments in the world will prevent you from playing slot machines or poker, as long as you are of legal age”, claims Anna Rosak. However, there are many online platforms that basically allow you to buy and sell certain short-term assets, which is incredibly risky.
Our expert thinks these websites more often look like gambling sites than legitimate stock markets. But, unlike licensed online casinos, they hardly emphasize the importance of responsible gambling or spending limits. More so, they try to convince the clients that they can master the skills of short-term trading in a very short time.
“Ask any real broker what they think of these sites, and don’t be surprised if they tell you that’s not what trading is all about. Honestly, I think an average poker game gives you a better chance of making money than this type of entertainment,” Rosak says and adds, “At least you know you’re at some risk and don’t take yourself too seriously.
Influence of gambling on stock markets
Anna Rosak may be quite pessimistic about the connection between games and stock markets, but that doesn’t mean there isn’t room for more fruitful development of events. The popularity of certain companies with the gaming community has led the stock markets to include them in their portfolio.
We are of course talking about payment methods. For example, the number of Paysafecard Casino is booming, and more and more gamers are opting for this particular payment method. Simple, discreet and cheap, it’s something every casino patron dreams of. The great interest in this particular type of online coupon led the company to be listed on the New York Stock Exchange with great success. The price of a Paysafe (NYSE:PSFE) share is expected to only rise as the company recently signed an agreement with several US bookmakers. With the US gaming market constantly growing and opening up, it’s only a matter of time when this brand achieves PayPal status.
This is exactly the same scenario that happened in the past. PayPal, one of the first online banking companies, has been the preferred payment method for gamers around the world. In fact, some will say, this electronic payment system would be a complete failure without online casinos looking for affordable and simple payment solutions. Over time, PayPal became somewhat notorious in the community due to its collaborative approach with local governments who wanted to fight tax evasion. Yet, it remains publicly traded as one of the most coveted brands of all time.
Besides payment companies, another type of business that regularly appears on stock exchanges around the world are gaming companies. To put it simply, these are the companies that run online and land-based casinos or create casino games. It might not be a household name like PayPal or Coca-Cola, but for experienced brokers, it’s nothing new. Ladbrokes, Caesars Entertainment Corporation. NetEnt and Playtech, to name a few, have been solid investment opportunities.
“People who want to combine gambling and stock trading should definitely consider buying some of these. Keep in mind that this is a legit stock exchange and requires a lot more money than any simple forex site you might find online,” reveals Rosak. not the idea, as she thinks the stock markets require patience that many players simply don’t have: “Don’t get me wrong, there could be an opportunity there, but the question is if an average gamer can wait for that to happen. In gaming, it’s all about instant gratification, after all.”