Sports are coming back. Online betting is increasing. What companies are benefiting?
Two years ago, the Supreme Court allowed betting on sports in all states, with each state deciding whether to allow this form of gambling or not. Several states have already legalized online sports betting. Many more states are considering legislation. These changes should lead to more online gambling, and a transition from illegal gambling to legal betting.
Even NBC Sports Broadcaster Jim Kozimor mentioned in an interview that sports betting will be an extremely strong growth industry.
So if you are looking for a way to profit from sports gambling, you should look at the stocks that should benefit from the online betting on sports events.
DraftKings (DKNG) is one of the largest pure plays in the online sports betting arena. This was one of the stocks that was created from a SPAC. Revenues for this $20.6 billion market cap company were up 23.6% for the latest quarter. Earnings are minimal giving it a price to earnings ratio of over 1000.
Flutter Entertainment (PDYPY) is one of the largest daily fantasy sports providers and a leader in the legal sports betting market. The company was formerly named Paddy Power Betfair. This $25 billion market cap company trades at 47.5 times earnings.
Boyd Gaming Corp. (BYD), an operator of a company that runs over a dozen casinos across the United States, offers its B Connected Sports app in order to take advantage of increased legalization. The stock trades at 30.9 times forward earnings.
to see a list of over 20 companies that may benefit from online sports betting and Internet gambling, sorted in order of market cap, click HERE.Maybe some of these stocks will win big.
Disclosure: Author owns DKNG
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