The increasing legalization of online gambling across several states should benefit prominent gambling companies International Game Technology (NYSE:IGT) and Scientific Games Corporation (NASDAQ:SGMS). But which of these stocks is a better buy now? Read more to find out.Headquartered in London, International Game Technology PLC (IGT) provides worldwide gaming technology products and services. It operates in two segments: Global Lottery and Global Gaming. In comparison, Scientific Games Corporation (SGMS) develops technology-based products and services and related content for international gaming, lottery, social, and digital gaming industries. It operates in Gaming; Lottery; SciPlay (NASDAQ:SCPL); and Digital segments.
Gambling companies, especially those offering online services, generated significant returns over the past year as people increasingly turned to online gambling, given that the physical casinos were closed for COVID-19 lockdown reasons. With the increasing legalization of online gambling across the country, many companies in this space are well-positioned to benefit. According to ResearchandMarkets, the global gambling market is expected to grow at a 7% CAGR over the next four years.
IGT has gained 19.6% in price over the past six months, while SGMS has returned 9%. Also, IGT’s 117.6% gains over the past year are significantly higher than SGMS’ 71.8% returns. Furthermore, IGT is the clear winner with 56.6% gains versus SGMS’ 3.5% returns in terms of their past three months’ performance.