On The Rise: Gambling Stocks Worth An Investment

The events in 2020 have led to the plummeting of the global economy. There seem to be very few places where you can invest your money with some confidence in a return and the gambling industry is one. The gambling industry in the US has a complicated history in the US but as the laws in the country are relaxing, gambling stocks might be worth a chance. There are many companies doing well, though the picture is different state to state in the US and you need to know your geography of the country. For instance, Pennsylvania online casinos are gaining in value all the time - you need to check that all the states are the same. Here we guide you through some of the top stocks.

Is gambling legal in the US?

Before we offer you financial advice, let’s try to answer a complicated question with a simple answer. If you are going to back stocks, you want the company to have as much freedom to grow as possible. Broadly speaking, gambling is not illegal in the US, as there are no federal laws banning gambling. However, gambling laws have been devolved to the state level, which means that laws are different where you go. Almost half of the states in the country allow online gambling now while some states, such as Utah and Hawaii continue to implement an all-out ban on gambling in any context. Sports betting in the US is predicted to reach more than 50% of the population by 2022. 

Penn National Gambling

Penn National operates more than 40 properties in the US and has recently announced a 36% ownership stake in Barstool Sports. Barstool is a blogging platform that has seen a significant rise in popularity, to the degree that Penn wants to move for full ownership of the company in three years. Why is this important? Well, the purchase of the platform gives Penn a betting presence beyond that which it has enjoyed before, with opportunity for cross-selling. Therefore, buying the stocks now and waiting through the next few years could see a healthy return.

Churchill Downs

Churchill Downs was a big winner from the federal legalisation of gambling in the US, gaining a significant 69% on its stock prices. Churchill Downs is the owner of 12 horse racetracks and stakes in several casino properties, including casinos in Pennsylvania, New Jersey and Indiana. Why choose Churchill Downs? Well, the company has been aggressive in its acquisitions in recent years and has continued to grow rapidly. It is likely that this expansion will continue and so will the value of your investment.

Boyd Gaming Corp.

First, Boyd Gaming Corp. owns eight casinos in Nevada, the heart of gambling in the US. Therefore, there is an indisputable solid foundation for the company. It also operates many other facilities across seven other states and has access agreements with online and mobile gaming platforms. The Bank of America has given Boyd a ‘Buy’ rating because of its presence in sportsbooks. This might seem odd in a time when live sport is limited but it is also a sign that many people are turning to online gambling to ease the boredom of stay at home orders.

MGM Resorts International

MGM is a massive name but also global. The company has a presence in China as well as the US. They also have an agreement with Nevada for online sports betting operations and they are working with GVC Holdings to realise this potential.The partnership between these companies already owns a mobile betting platform in New Jersey - with the launch of the Bet MGM app. You will be putting your money in secure hands.

Flutter Entertainment

You may want to avoid the complexities of physical casinos and look to online gambling instead - if so - Flutter Entertainment is the best choice. The company owns significant global brands such as Paddy Power and Betfair, as well as a 58% stake in the New York sportsbook FanDuel. Along with DraftKings, FanDuel dominates 83% of the US online betting market. There are so many deals in process that the fortunes of Flutter Entertainment are likely to rise over the coming months.

Draftkings

We mentioned that DraftKings dominates the online betting market in the US along with Flutter Entertainment. It recently announced a merger with Diamond Eagle Acquisition and SBTech, making the company the only vertically integrated US sportsbook in the US. This company is the leader in fantasy sports and with people looking to the online world for entertainment, it is likely to be one of the winners of the current health concerns.

Will the rise continue?

The rise in the value of sports betting stocks is likely to rise. Now that betting in the US is no longer illegal after the 2018 ruling, there is likely to be a wave of release of freedoms to bet across the county. Therefore, it is worth keeping up to date with local, state-level news to understand where to put your money.