The Right Horses to Bet: 12 Sports Betting Stocks to Buy Now

Last year, the U.S. Supreme Court allowed regulation to be taken charge by States instead of the Federal Government. The illegal market in the U.S. alone is estimated at $150 billion waged every year. Legal sports gambling is growing everyday. The industry has a 20% growth projection for the next 5 years.

Across the pond, gamblers have been participating in sports betting. In the U.K.,Europe’s largest sports betting market, has liberalized online gambling regulations.

The most obvious players in the industry to take advantage of this are casinos who are well established. Furthermore, the majority of wagers are expected to take place via apps in the near future.

Here are the best stocks to take advantage of this new opportunity in legalized sports betting.

🃏 Casinos & Gaming

Canadian

Great Canadian Gaming Corp (GC-T)
A Canadian casino operator that has recently won many contracts in Ontario. Due to restrictions and regulations, they have little competition and basically has a monopoly on gaming in Toronto. They are sure to take advantage of sports gambling.

Great Canadian Gaming Corp (GC-T) — Stockchase

Opinion about GC-T: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Takeover offer. Pandemic hit hard. Solid assets, but re-opening slowed. Healthy balance sheet.

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Pollard Banknote Ltd (PBL-T)
They are best known for instant win lottery tickets. They have a great social media presence, pay a good dividend and has been a solid gaming company.

Pollard Banknote Ltd (PBL-T) — Stockchase

Opinion about PBL-T: Global tri-opoloy. High barriers to entry. Stable industry that's grown ~6% a year for 30 years, never a down year. New growth avenue of iLottery, which is very high margin with a different demographic base. Well managed, insider ownership strong, margins improving. Low valuation for high-quality company. Yield is 0.8%. (Analysts’ price…

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The Stars Group Inc (TSGI-T)
A market leader in poker but are moving into sports gambling now. They made a deal with NBA to be their gambling provider. They’ve expanded into the UK and Australia and they still have some space to grow.

The Stars Group Inc (TSGI-T) — Stockchase

Opinion about TSGI-T: (A Top Pick May 29/19, Up 66%) He sold out previously. He liked the 5 year forecast. As we came into late last year some of the volatility in the stock was not what he was interested in so he exited. He believes they will be stronger going forward.

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United State

MGM Mirage (MGM-N)
The largest casino operator in the U.S. It has invested in sports betting and are building a sports betting empire. They recently made a deal with Major League Baseball as their official gaming partner.

MGM Resorts International (MGM-N) — Stockchase

Opinion about MGM-N: Vegas tourism is white hot. Revenue per room was up 11% in May YOY, convention attendance up 2%, and visitors up 5%. MGM has over half its business from Vegas. But he doesn't like MGM's regional business and those patrons are struggling from higher inflation and interest rates. He Likes MGM, but…

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Churchill Downs Inc (CHDN-O)
They traditionally are a horse betting company, but the legalization of sports betting represents a big opportunity for them. They’ve already entered the market in Mississippi. For the last 5 years, the stock has trended up and has performed well.

Churchill Downs Inc (CHDN-O) — Stockchase

Opinion about CHDN-O: A year ago, we could have made some money. He cannot understand why the stock is making new highs. The horse racing sport is out of favor. The stock needs to pause.

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Penn National Gaming Inc (PENN-Q)
A large casino company that is betting big on sports betting, with a $3.1 million investment to launch sports betting at their Mississippi and Hollywood casinos.

Penn National Gaming Inc (PENN-Q) — Stockchase

Opinion about PENN-Q: Gambling is hot again. They bought Barstool and he likes that deal.

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Boyd Gaming Corp. (BYD-N)
They announced a partnership with MGM last year to focus on the future of online gambling and sports betting. They will be providing a platform for sports betting, casino gaming and poker.

Boyd Gaming Corp. (BYD-N) — Stockchase

Opinion about BYD-N: Founded in 1975, Boyd Gaming Corporation is one of the largest and most successful casino entertainment companies in the United States. We operate 28 gaming properties in ten states – Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania -- and manage a tribal casino in northern California. Our Company…

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International Game Technology (IGT-N)
They’ve teamed up with fantasy sports provider FanDuel to enter the New Jersey sports betting market. They are traditionally a slot machine business but they are moving heavily into sports betting.

International Game Technology (IGT-N) — Stockchase

Opinion about IGT-N: (A Top Pick May 10/22, Down 20.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with IGT has triggered its stop $16. To remain disciplined, we recommend covering the position at this time.

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Scientific Games Corp (SGMS-Q)
Their SG Sports platform is an online sports betting platform for soccer, tennis, basketball, etc.
They also partnered with Caesars to launch sports betting at their Casino and racetrack.

Scientific Games Corp (SGMS-Q) — Stockchase

Opinion about SGMS-Q: (A Top Pick April 22/04. Then: $20.68) Fundamentals are still good. This business is extremely good. At this level, the stock is very attractive unless something changes dramatically.

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Wynn Resorts Ltd. (WYNN-Q)
Wynn is working on launching a mobile sports betting app, joining the Nevada mobile sports betting applications. They are planning on offering a wide range of functionality and bets on horse races too.

Wynne Resorts Ltd. (WYNN-Q) — Stockchase

Opinion about WYNN-Q: Their international expansion makes them a growth stock.

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Las Vegas Sands Corp. (LVS-N)
An IT solutions provider that is launching an all-in-one sports book solutions for SMEs to offer bets. Their ‘sports betting in a box’ includes solutions for hardware, middleware and software, and can even process live betting.

Las Vegas Sands Corp. (LVS-N) — Stockchase

Opinion about LVS-N: 60% of EBITDA comes from Macau, which is recovering; she's bullish here because LVS has done a ton of renovations that completes this spring. Trades at 11x EBITDA vs. 14x historic. Is -20% the past year.

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UK

William Hill (WMH-LSE)
The world’s top betting sites who has 25% of the sports betting market in the UK and Ireland. They are looking to venture into the U.S. as well, following the Supreme Court decision. They have a well-established app and has a loyal gambling clientele.

William Hill (WMH-LSE) — Stockchase

Opinion about WMH-LSE: (Top Pick Jan 30, 2009, Up 16%) Exercised rights that they issued. The rights issue diluted earnings. Management team has proven inept.

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Happy trading !