The key question for investors is how to play this compelling market. The operators are well known; we see their advertising campaigns everywhere: on TV, on social platforms and emblazoned on the shirts of famous football clubs. While the operator retail outlet market is quite consolidated, the online market, on the other hand, is very
fragmented. With the barriers of entry being very low to the online segment, the number of operators has exploded over the last couple of years. On top of that, the diversification of their offerings is very limited; hence, they have to continuously spend large amounts of capital on marketing to attract and retain customers.
Meanwhile, suppliers have the advantage of being able to work with many operators and therefore offer wide exposure to the market. But again, differences between them are limited. Companies can launch new ideas to remain ahead of the competition; however, this edge lasts often only for a few months, before the other players counterattack with a similar product. Furthermore, the most attractive companies in this part of the industry are well known and valuations expensive.