The last 7 months has been difficult for us all, and impossible for many. Not to trivialize the real struggles across the world that the current crisis and its policy response have engendered among human civilization generally, but it has been frustrating for gambling investors just the same. We have seen fundamentals deteriorate at a frightening rate across nearly all markets and regions, while at the same time corresponding stock prices have remained stubbornly elevated thanks to unprecedented stimulus. The temptation to dive back in as if nothing colossal at all has happened is palpable. At the same time, the world’s most powerful gaming hubs like Macau and Las Vegas are still suffering acutely, struggling to get back up off the ground.

Macau’s Golden Week, for instance has so far proven to be a bust. Casino revenue on the Las Vegas Strip, meanwhile, is still down about 40% from last year as of the latest August numbers. Strict capacity restrictions are still in effect, though just recently loosened at the beginning of October. Hotels are empty and conventions are nonexistent. Europe, meanwhile, and particularly the United Kingdom, is suffering from severe lockdowns of its own, and there is no telling when they will end. It is hard to justify putting money to work in these markets when another flare-up in COVID-19 cases could bring stock prices right back down to their knees at any time.

But even now, there remain some regions that are showing tangible signs of hope. I have singled out Sweden many times due to its deliberately liberal pandemic policy. Betsson and NetEnt have done spectacularly considering the circumstances, and their stock prices clearly show it. The problem is, liberal COVID-19 policy doesn’t necessarily translate to liberal gambling policy. New anti-gaming regulations capping deposits and bonuses continue to plague the Swedish market, with sales down 30% for local online gaming operators for July and August. The stock prices of Betsson and NetEnt haven’t been effected particularly badly though. Betsson is within 15% of its all time highs. NetEnt is trading just barely beneath its own. This considered, it may be time to lighten up on Swedish gaming positions and take some profits. Is there anywhere else to put money to work in the industry?

The challenge is finding a region where COVID-19 is less of an issue, but also where the regulatory regime is less openly hostile. Though it has never been my cup of tea due to monopolistic concerns, Cambodia does satisfy both of these requirements. Until this nightmare is finally over, NagaCorp looks like a relatively safer place to invest than most other mainstream alternatives. Amazingly, NagaCorp just announced that average daily net gaming revenue at its flagship NagaWorld casino has generated over 90% of Q1 2020 revenue for the months of August and September. VIP rollings are even better, back to 98% of Q1 levels.