The Best ASX Gaming Stocks
to buy Now In
April 2024

Check out our industry experts’ report and
Analysis on the best gaming stocks right now on the ASX

The Best ASX Gaming Stocks to buy Now In April 2024

Check out our industry experts’ report and analysis on the best gaming stocks right now on the ASX

What Are ASX Gaming Stocks?

ASX gaming stocks are companies engaged in the video game industry listed on the Australian Securities Exchange (ASX). This sector encompasses firms involved in producing, distributing, and developing electronic games, along with the necessary software and hardware for gameplay. It is stereotypical to think of these as esports stocks. There are some that are in esports, but others are in other games and some just provide the underlying technology rather than the games themselves.

Why Invest in Gaming Companies in Australia?

Investing in gaming companies in Australia offers exposure to a rapidly growing and innovative industry set to benefit from continued technological advancements. The universal access to smartphones has turned every user into a potential gamer, indicating that mobile games are not just a niche interest but a mainstream entertainment form.

Moreover, the evolution of eSports and gameplay live streaming highlights a significant interest in watching gameplay, further expanding the industry's reach. Gaming companies contribute significantly to the video game ecosystem, developing games, manufacturing hardware, and engaging in publishing and distribution. With global player numbers estimated to exceed 3 billion, an investment in a gaming stock offers a pathway to partake in the industry's substantial growth and diversification, leveraging ongoing technological progress.

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Future Outlook of the ASX Gaming Sector

The ASX gaming sector is poised for significant expansion, driven by the industry's adaptation to players' demands and the continuous innovation in interactive electronic entertainment.

The sector, already benefitting from the pandemic-induced surge in gaming interest, faces the challenge of retaining the newly acquired gamer base. Companies that successfully adapt to evolving consumer preferences, are expected to remain at the forefront of the industry.

The Australian gaming industry's substantial market cap and innovative contributions, including developments in AAA console titles and indie games, signal a robust future. As gaming companies starts focusing on players' demands and leveraging new technologies, the ASX gaming sector is in a good position for a continuous growth, offering intriguing prospects for investors keen on the video gaming and entertainment sectors.

3 Best ASX Gaming Shares to Buy Now in 2024


Aristocrat Leisure Ltd (ASX:ALL)

Aristocrat Leisure (ASX: ALL) has historically been a pokies manufacturer, but has broadened its product range. It now offers computerized card game simulations, electronic table games, and linked jackpot systems (such as the patented Hyperlink systems).


Light & Wonder Inc (ASX:LNW)

Light & Wonder might just be the best way to access the US betting market with PointsBet (ASX:PBH) having given up. It has a diverse range of businesses in the gambling products and services sector (particularly pokie machine manufacturing).



Jumbo Interactive Ltd (ASX:JIN)

Jumbo Interactive (ASX: JIN) is a lotteries retailer and a provider of a SaaS platform that helps government and charity lottery operators do business. It stared out in 1995 as a builder and seller of website design services.

3 Best ASX Gaming Shares to Buy Now in 2024

Aristocrat Leisure Ltd (ASX:ALL)

Aristocrat Leisure (ASX: ALL) has historically been a pokies manufacturer, but has broadened its product range. It now offers computerized card game simulations, electronic table games, and linked jackpot systems (such as the patented Hyperlink systems). The company has developed the Reel Power system, where players buy reels instead of lines, winning combinations in the standard configuration. AIt is an ASX 20 company in dozens of jurisdictions, over 70% of its revenue recurring and a combined TAM of ~$350bn across its different segments.

The company has performed solidly in the last year, propelled by the company's varied gaming portfolio and effective execution in the North American market.

In FY23, the 12 months to September 30 2023, the company made $6.3bn in revenue (up 13%) and a $1.45bn post-tax profit (up 53%). It has been led by Trevor Croker who has been at the helm since 2017 and served in lower management roles with the company prior to that.

For FY24, $6.7bn in revenue is forecast and $7.1bn in FY25 – both representing 6% growth. Although a 5% decline in profit is expected for FY24, it is still anticipated to be $1.39bn. And growth is expected to return in FY25 with a $1.5bn profit forecast, representing 10% growth.

Light & Wonder Inc (ASX:LNW)

Light & Wonder might just be the best way to access the US betting market with PointsBet (ASX:PBH) having given up. It has a diverse range of businesses in the gambling products and services sector (particularly pokie machine manufacturing). The Las Vegas-headquartered company was listed on the NASDAQ, but chose to list down under in 2023 due to interest from local fund managers.

In CY23, it delivered a 16% jump in revenue to US$2.9bn and it delivered a US$180m profit.

Jumbo Interactive Ltd (ASX:JIN)

Jumbo Interactive (ASX: JIN) is a lotteries retailer and a provider of a SaaS platform that helps government and charity lottery operators do business. It stared out in 1995 as a builder and seller of website design services. One of its clients was an online lotteries provider and Jumbo, seeing the growth in online lotteries, bought a company that sold Oz Lotto and Powerball tickets online. Fast forward to 2024 and Jumbo has over 2 million players from Australia and abroad.

Founder Mike Veverka has remained at the helm since its inception and retains a 14.1% stake in the company. And with only 36% of lotteries having gone digital, there is more opportunity for Jumbo to capture at home and abroad. On top of all this, it has a resale agreement with gambling giant Tabcorp.

With a strong dividend yield of 2.41% and a 22% rise in share price since the beginning of 2024, Jumbo is an undervalued stock with a lot of room to grow and pay out dividends. Its strategy is to convert customers and generate strong free cash flow, which is supported by a net cash balance sheet.

What to Look for When Buying ASX Gaming Stocks

An essential consideration is the diversity of the company's portfolio, including a mix of mobile games, console games, and PC gaming offerings, to ensure security against changing market demands and consumer mindset.

Attention should be given to firms with innovative projects in virtual reality and augmented reality, as these sectors represent the frontier of interactive electronic entertainment. However, many of these companies are early-stage and not profitable - some are not even revenue generating. Established companies may not seem like a high-return investment at first glance, but they can deliver growth in the event of successful execution.

How to Invest in Gaming Shares in Australia?

Investing in gaming shares in Australia involves several steps, starting with conducting thorough research on the ASX gaming sector to identify companies with strong growth prospects. Consider diversifying your investment across different segments of the gaming industry, including mobile gaming, console games, and eSports, to mitigate risk.

Utilizing ETFs, such as Betashares Video Games and eSports ETF (ASX: GAME), can offer broad exposure to global gaming giants and is a cost-effective way to enter the market. Prospective investors should monitor industry trends and company performance regularly, staying informed on developments in virtual reality, augmented reality, and other emerging technologies that could impact the sector.

FAQs on Investing in Gaming Stocks

Focus on established companies like Aristocrat Leisure and Jumbo Interactive with a proven track record, but upcoming catalysts for future growth.

Our Analysis On ASX Gaming Stocks

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