The Sports Gambling Industry is rapidly growing as more and more states in the U.S. push for legalization. In 2020, the global sports betting market reached a market size of $203 billion. In 2021, the the sports betting revenue is predicted to reach a whooping $2.5billion. There are currently 21 states that have approved legal sports gambling and are taking bets either at physical sportsbooks locations or mobile betting (Arkansas, Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Tennessee, Virginia, Washington D.C., West Virginia); 6 states with approval, awaiting further action (Louisiana, South Dakota, North Carolina, Maryland); and 14 states that have begun to consider sports betting proposals in their states and likely to see sports betting in 2021 or 2022 (Florida, Georgia, Arizona, Connecticut, Kansas, Kentucky, Maine, Massachusetts, Missouri, North Dakota, Ohio, Texas, Wyoming, Vermont).
1) DraftKings (NASDAQ: $DKNG)
DraftKings is the official daily fantasy sports partner of the NFL, MLB, NASCAR, and the PGA Tour, as well as an authorized gaming operator of the NBA and MLB. The company has been the topic of multiple analyst upgrades in the past couple days and is currently trading at all time highs around $69 to $70 as of today, March 2, 2021. With more and more states pushing for legalization of sports gambling, $DKNG has tremendous upside and is likely to keep rallying higher.
2) Penn National Gaming (NASDAQ: $PENN)
Penn National Gaming is an established player in the U.S. Casino and gaming industry. The company owns, operates or has ownership interests in 41 gaming and racing properties in 19 states and video gaming terminal operations with a focus on slot machine entertainment. On top of that, Penn National Gaming now owns arguably one of the most popular sports publishers/media company, Barstool Sports. Since the purchase of Barstool Sports, PENN’s share price has grown over 400% ($29.02 on the day of purchase) and currently trading near its all time high of $129. The purchase of Barstool gives the company a huge competitive advantage due to Barstool’s massive fanbase known as the “Stoolies”. Recently, the company launched the Barstool Sportsbook App (exclusive to Pennsylvania) and has opened multiple Barstool branded sportsbooks in several states (Colorado, Illinois, Indiana, and Michigan at the time of writing). Like $DKNG, $PENN has strong potential to shoot higher as the legal sports gambling market in the U.S. continues to grow.
OTHER STOCKS WORTH KEEPING AN EYE ON
Wynn Resorts, Limited is an American publicly traded corporation based in Paradise, Nevada.
MGM Resorts International is an American global hospitality and entertainment company operating destination resorts in many different US cities.
Esports Entertainment Group is a licensed next generation online gambling company focused on esports betting.
The Roundhill Sports Betting & iGaming is an ETF intended to offer investors exposure to sports betting and iGaming industries without exposure to a single stock.
(these are one contributors opinion and should not be taken as financial advise)