The huge growth in the sports betting industry in the United States has led to the emergence of large publicly traded companies.
From BET MGM to DraftKings, these are large powerful enterprises offering different products and services related to sports betting. They open up an interesting possibility for those who are interested in stocks.
These new operations are growing fast and appear very profitable, so what about investing in them?
They may be names familiar to gamblers, but when investing in betting companies like these, it’s wise to approach it as a serious investment – rather than a different form of gambling.
That means conduct proper research on the company stocks you’re interested in.
Don’t just plop your money on ‘red’ as in roulette or back your hunch as in poker game. You may be an expert with key gambling assets like sportsbook promotions – but that might not make you an expert investor.
So be cautious, analyze financial statements, business models, competitive advantages and growth potential.
Look at factors specific to the gambling industry, like changing regulatory environment. Stay informed about gaming and casino industry trends, company news and economic factors that affect sports betting stocks.
Overall, from an investor’s point of view, sports betting stocks work in a manner similar to stocks of companies in other industries.
Diversification is crucial. It’s dangerous to put all your money into a single sports betting stock.
Again, remember that you’re not making a bet. You’re making an investment.
Spread investments across different stocks to mitigate risk and approach betting stocks with long-term perspective.
Stock prices can be volatile in the short term – but the industry’s growth potential provides very promising opportunities for long-term investors.
What are some of the top sports gambling stocks?
Always note that the stock market is dynamic, and the performance of stocks mentioned below can change quickly. These are performing well at the time of writing but it is essential to conduct up-to-date research at the time of investing.
The top gambling stocks often involve major bricks and mortar casino operations.
Las Vegas Sands Corp, for example, is a leading casino and resort operator with properties in Las Vegas, Macao, and Singapore. Their iconic properties include The Venetian and The Palazzo in Vegas.
Wynn Resorts is another major player in the casino and resort industry, also with properties in Las Vegas and Macao. Its flagship properties include Wynn Las Vegas and Encore at Wynn Las Vegas.
Newer online gambling operations can provide tempting stock opportunities too. DraftKings is a digital sports entertainment and gaming company that focuses on online sports betting and daily fantasy sports.
They’ve become a prominent player in the booming online betting sector. Their growth has been rapid to date – investors may see the company as a very exciting opportunity for stock trading.
Behind-the-scenes tech operations like International Game Technology PLC could be even more tempting, as a potential dark horse riding on the wave of the online gambling boom.
IGT is a multinational gaming company slightly below the radar, but provides state-of-the-art gaming technology and content for both land-based and online casinos. It’s a market that experts consider is likely to grow.
BetMGM is another very alluring stock in this industry. When one of the world’s top entertainment companies joins forces with one of the largest online betting companies, it certainly sounds like a prime investment opportunity.
The giant combined BetMGM operation has rapidly made a name by expanding into the US sports betting and online gaming world. With the back-up of such major operators, it looks a very secure option.
In fact, stocks like BetMGM and DraftKings are particularly interesting to investors seeking a substantial capital appreciation. The online sports betting and daily fantasy sports industry may be relatively new – but has already demonstrated significant growth potential.
Their future growth will certainly be boosted by which states legalize and regulate online betting in the future.
Investors looking for dividend income may prefer established casino and resort companies like Wynn Resorts. Such established companies may not be exploding as fast as the online operators – but could be a better option to pay dividends regularly, providing a steady income stream.
Nevertheless, investors in this world are likely to be more risk-tolerant than most. The gambling industry can be volatile thanks to factors like regulatory changes and economic conditions.
All investors considering stocks in this industry should therefore be prepared for price fluctuations.
Long-term investors who believe in the continued growth and expansion of the gambling and entertainment industry in the US might find any of these leading stocks attractive.
Industry experts predict that the industry will continue to evolve and grow as more states legalize various forms of gambling. This makes the top US sports betting stocks a very tempting proposition for many types of investors.