These Are the Stocks To Buy if You Want To Bet on Sports Gambling
The sports gambling industry has been generating consistent revenue as more U.S. states allow online sports gambling. These are stocks set to benefit.
Oct. 21 2021, Published 2:16 p.m. ET
Once illegal in many states, sports gambling has now become a booming business, and casinos, sportsbooks, and other sports gambling platforms have benefited from its success. Investors in sports gambling stocks have benefited as well. New Jersey has seen tremendous revenue growth from sports gambling after legalizing it in June 2018.
In Sept. 2021, the state became the first in the U.S. to take in over $1 billion in sports bets in one month, with over $1.01 billion in bets placed. That figure was likely supported by the NFL season kicking off in early September and the NCAA football season beginning in late August.
The rise in sports gambling has prompted organizations to raise awareness about it
The success the sports gambling industry has had so far caused the NFL to launch its own sports betting awareness campaign. The league announced on Oct. 20 that it will spend $6.2 million on programs to spread awareness of the dangers of sports betting.
The organization found that more than 45 million U.S. residents plan to bet on NFL games this year, and it surely doesn't want to be the reason millions of people lose money. The NFL hopes that, with its campaigns, fans will be more cautious when placing bets and aware of the impact of gambling addiction.
The top stocks that involve sports gambling
MGM (MGM)
One of the oldest and well-known companies that offer betting services, MGM offers BetMGM, an exclusive sports betting division that has been a popular service for many. MGM’s stock has been on a constant uptrend since the middle of May 2021, increasing over 500 percent since then.
The company's BetMGM division announced on Oct. 21 that it will sign a partnership with NBA Hall of Famer Kevin Garnett. Garnett will serve as a brand ambassador for marketing campaigns, promotions, social media content, and fan events.
DraftKings (DKNG)
DraftKings going public in April 2020 was only be the beginning of the company's monumental success. The platform has grown tremendously since then, partnering with various sports organizations, such as the NFL and NHL. DraftKings stock has fallen more than 20 percent since the start of Sept. 2021. However, the stock has been deemed by many—including Cathie Wood—as a great long-term investment.
The sports betting company launched an NFT marketplace in Aug. 2021, expanding into the cryptocurrency and blockchain markets. On Oct. 18, the company announced that it will use the Polygon protocol, an Ethereum-based network, to support future NFT releases and secondary market transactions.
Flutter Entertainment (PDYPY)
Flutter owns many gambling platforms, such as PokerStars, Sportsbet, FOX Bet, and arguably the most popular, FanDuel. Along with DraftKings, FanDuel has been one of the top sports betting companies in the world. Flutter stock has been slightly bullish since summer 2021, increasing over 20 percent since mid-July. The company reportedly controlled over 50 percent of the sports betting market in the first half of 2021.