Investors that took a gamble when online sports betting was legalized are sitting pretty on a winning ticket. In May 2018, The Supreme Court struck down the Federal law prohibiting legal sports gambling, rendering it unconstitutional. Thanks to this momentous decision, sports gambling is now authorized and regulated by each state and not the Federal Government, a move that has seen sports betting take off in a major way.
What’s so amazing is that this growth has triggered a sports betting revolution that has never been seen before. The Garden State has been largely responsible for this boom in online sports betting. It has created a model that other states are following as the gambling industry continues to grow by leaps and bounds.
Other states that have followed New Jersey’s lead include New Mexico, Mississippi, West Virginia, Delaware, Pennsylvania, Rhode Island, and more on the way. By 2022, it is anticipated that sports fans all over the world will be gambling $1 trillion online each year. Sports betting stocks have quickly become a potential billion-dollar industry that investors simply cannot ignore anymore.
So what are investors looking at?
Here are the top 5 lucrative stocks that investors are looking out for as they look to get in on the legal sports betting action:
DraftKings (NYSE: DKNG)
DraftKings stands as one of the most popular sports betting companies in the world. The sportsbook recently announced exclusive sports betting partnership with NFL’s New York Giants, a move that caused stocks to shoot through the roof.
Owing to this deal, DraftKings will operate a sportsbook, online wagering, as well as a virtual sports lounge for the New York Giants. DraftKings stock has been soaring ever since the company went public back in April. Soon after it went public, shares climbed to almost 140%, with the company now being valued at an impressive $13 billion.
MGM Resorts (NYSE: MGM)
Sports betting may be huge but it’s still relatively new and immature compared to blackjack, for example. However, one major casino chain that’s hoping to change all that is MGM Resorts (NYSE: MGM), which is striving to bring sports betting to the forefront in Vegas.
As the largest casino in America, MGM Resorts generates approximately $4 billion in revenue from Sin City alone. It also has properties in AC and just this year, it took over ownership of the Empire Casino situated in New York.
MGM Resorts has a pretty strong hold in the sports betting industry, which means that it enjoys financial supremacy, with a market cap of about $13.5 billion. The brand is using its finances to gain an even stronger hold in the sports betting world. Don’t believe it?
It’s already launched sports betting in 2 casinos in Mississippi and has recently become the official gaming partner of the NBA. MGM also has deals with other huge leagues in the country including professional baseball, hockey, as well as basketball.
Marriott International (NASDAQ: MAR)
Marriot is one of the most successful hotel chains in the country. As sports betting continues to gain momentum, casino resorts and operators such as MGM are looking to make partnerships with Marriot so that they can leverage the chain’s vibrant customer chain in an effort to rope in more business. Already, it has partnerships with JW Marriott Las Vegas Resort & Spa, as well as a couple of casinos strewn all over the Caribbean.
Boyd Gaming Corporation (NYSE: BYD)
Boyd Gaming Corporation (NYSE: BYD) is one of the biggest and most successful casino operators in the US with more than 29 gaming properties spread across 10 states. Like many other casino operators worth their salt, it is effectively positioning itself to become a major player in the thriving sports betting market.
It has a particularly strong influence in the Vegas Strip as for the past 10 years, it has been managing some of the largest and busiest sportsbooks in Vegas. Now that sports betting is legal, it is positioning itself to expand in other markets.
Bragg (BRAG.V; BKDCF)
Bragg (BRAG.V; BKDCF) Gaming company is also taking big strides in the sports betting industry. It already enjoys a humongous audience of about 31 million people for its sports brand Give Me Sports. Alongside its online global gaming platform Oryx Gaming, it is set to leverage the burgeoning sports betting audience so that it can become the largest sports betting customer base in the world.
In the future, Bragg has hopes to launch a new sports-only betting platform known as Give Me Bet. Just in the last year alone, Oryx Gaming has seen a revenue boost of more than 400% with Give Me Sport’s traffic increasing by 5 million. Though Bragg is a fairly small company, it is expected to become one of the biggest success stories in 2019.
International Game Technology (NYSE: IGT)
International Game Technology (NYSE: IGT) enjoys an enviable market cap of $3.4 billion. This is not a small firm; in fact, IGT manufactures more casino gaming platforms and slot machines than any other organization. However, now, it’s branching into the mushrooming sports betting.
Unlike sine companies on this list, IGT is a service provider and not an operator. This means that it doesn’t have to involve itself in the risky business of managing sportsbooks. Rather, all it does is offer support for operators such as MGM, that need assistance constructing the infrastructure that is making the growth in the sports betting market a possibility.
With such stocks, the future of the sports betting industry has never looked brighter. So far, a total of 16 states have welcomed legislation or at least introduced ballot measures in this year’s 2020 election, following in the footsteps of the New Jersey sports betting industry. It is expected that by 2025, 36 states will have legalized sports wagering.
As legal sports betting continues to take over, investors are setting themselves up to be the biggest names in town. If you are looking for a winning bet as it regards to your investments, these stocks shared above are worth checking out as they will pay off handsomely.