Sports gambling stocks are set to explode.
Penn National Gaming (PENN), MGM Resorts (MGM) and DraftKings (DKNG) are seeing solid momentum on news Michigan is moving closer to finalizing online sportsbook regulations. Even better, analysts at Oppenheimer say there’s a strong possibility for legalized sports betting in New York by 2021.
“The head of the Michigan Gaming Control Board said this week that online gambling and sports betting could go live by ‘late fall’” a bumped-up timeline amid the COVID-19 pandemic that has casinos across the state operating under significantly limited capacity,” as reported by The Detroit News.
Years after a U.S. Supreme Court decision that cleared the way for online sports gambling, 18 states now have regulated sports betting markets – with more to come. Plus, investors say more than half of U.S. states could soon offer legal sports betting.
The stakes are high.
If sports gambling can find solid footing, independent research firm, Gambling Compliance, as noted by Kiplinger, the market could see between $5.9 billion and $8.2 billion by 2024. Morgan Stanley says the U.S. sports betting market could run to $10 billion.
Globally, it could hit $10 billion a year by 2025.
And by 2030, Bank of America says we could see the market up to $24 billion.
“Also, the rise of fantasy sports has increased the engagement from the younger generations, leading to a path of growth for many companies in the long-term as sports-betting makes its way throughout the United States and the world.”
Some of the best ways to trade the sports betting boom include:
· Penn National Gaming (PENN)
· MGM Resorts (MGM)
· DraftKings (DKNG)
· William Hill (WIMHY)
Another way is to bet on the Roundhill Sports Betting & iGaming ETF (BETZ).
The Roundhill Sports Betting & iGaming ETF is designed to offer retail and institutional investors exposure to sports betting and iGaming industries by providing investment results that closely correspond, before fees and expenses, to the performance of the Roundhill Sports Betting & iGaming Index. Some of its top holdings include William Hill, Penn National Gaming, Kindred Group, DraftKings, Flutter Entertainment, and Churchill Downs Inc.