This Gambling Stock Could Double Your Money in the Next Year

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Earlier this year, I helped Money Morning readers score a quick 103% return on Dover Downs Gaming & Entertainment Inc. (NYSE: DDE).

The casino and racetrack operator’s stock surged after the U.S. Supreme Court struck down a federal ban on sports gambling, and the firm announced plans to sell to a Rhode Island casino operator.

roulette table

Just last week, Dover Downs opened its sports gambling window to accept its first NASCAR bet, one of many it should expect in the future.

And with greater gambling proceeds comes a fatter bottom line.

With the fortune we found with Dover Downs, I’ve been asked by readers to take a look at other gambling stocks and find another triple-digit winner.

While everyone is talking about MGM Resorts International (NYSE: MGM) or Caesars Entertainment Corporation (NASDAQ: CZR), they’re missing the opportunity of a lifetime to scoop up small, cheap casino operators.

That’s where the biggest profits are located.

I’ve scoured the corporate statements of the entire industry, and I’m willing to bet you’ve never heard of this potential triple-bagger…

The Gambling Stock Everyone Will Wish They Owned

In September, I said that if you’re going to go BIG on international gaming, you should take a look at Las Vegas Sands Corp. (NYSE: LVS).

I expect this large-cap casino giant will be a major player in the Japanese gambling markets in the wake of legalization in the country. The company also remains a leader in the Las Vegas and Macau, China markets.

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But Sands isn’t my top pick.

To get even bigger upside, you’ll need to harness two trends: the ongoing consolidation wave in the gaming sector and expected growth in the international markets.

That’s how you’ll make life-changing wealth with casino stocks…

Colorado Springs–based Century Casinos Inc. (NASDAQ: CNTY) offers both of these benefits.

I know you’ve never heard of them.

We’re talking about a company with a market capitalization of just $190 million.

But casino gambling is at its core, and a widespread network of operations gives it access to growing markets around the world.

The company owns two casinos in Colorado, but it also owns the Century Downs Racetrack and Casino in Alberta, Canada and six casinos in Poland – and it operates 14 cruise ship casinos.

The company also just opened a casino in Bath, an affluent city of 200,000 people in southwest England.

Bath – which is designated a UNESCO World Heritage Site – receives 5 million tourists each year.

This casino was the company’s first foray into the UK market.

With all of this global reach, the stock looks too cheap to pass up.

CNTY shares are bouncing off a 52-week low, opening today (Oct. 11) at $6.45 per share.

And while that might scare some people, this undervalued stock is about to unlock big profits for investors who buy at this favorable entry point.

I’m not the only one with this view.

In the next 12 months, Roth Capital Partners projects the CNTY stock price will skyrocket to $14 per share.

That’s a potential profit of 117%.

And that may be too conservative of an estimate…

Why CNTY Could Skyrocket Past $14 Per Share

With shares sitting in the mid-$6 range, the value is starting to look more and more appealing.

The company has few concerns about cash flow or bankruptcy risk with an Altman Z Score of 2.8.

Anything under 2, and we would start to be concerned.

During the company’s Q2 call, executives laid out their capital strategy moving forward. If the company does not find attractive growth opportunities by next spring, the firm is likely going to authorize a shareholder buyback program.

The firm has said it would prefer growth through new developments or acquisitions.

But with a lot of global uncertainty hitting the markets, each day brings the increasing prospect of returning that capital to shareholders.

That would help the stock climb.

Finally, there’s one more number I’d like to point out. The stock’s beta – a measure of its volatility – is just 0.22, well below the industry average of 0.96.

Given the ongoing uncertainty in the global markets right now, this stock is less risky than its peers.

So, if you’re looking for a cheap stock that taps into global markets and offers buyout potential while limiting the downside from market shock, put a few chips in on Century Casinos.

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