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
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.
He got stopped out of this. It's well-run, but the casinos are closed so there's no revenue coming in. GC carries a reasonable amount of debt. Also, casinos have high operating expenses, even during this lockdown. He wants to see stability in their debt, though. In recessions, gambling performs well, though.
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.
Loves it. He tried to buy it during the pullback. Their business was way down during the lockdown earlier this year, but the lottery ticket business really picked up in following months during reopenings. Sales have come back quite nicely. People are buying more lottery tickets. Their online lottery in Michigan has taken off, like…
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.
(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.
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.
(A Top Pick Nov 19/19, Up 2%) Two days ago, it was up 12%, but the coronavirus has really pressured this. Buy this on any pullback.
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.
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.
Penn National Gaming Inc (PENN-Q)
A large casino company that is betting big on sports betting, with a $3.1 million investment to launch sports betting at their Mississippi and Hollywood casinos.
It's had a huge run. Used to be considered an also-ran roll-up with lots of Middle American exposure. Their winter deal with Barstool (https://www.pngaming.com/barstool-sports) will make them the top website for legal gambling which should expand to more states. Their numbers could go way up. Buy now and buy more on a pullback.
Boyd Gaming Corp. (BYD-N)
They announced a partnership with MGM last year to focus on the future of online gambling and sports betting. They will be providing a platform for sports betting, casino gaming and poker.
Isn’t a company he follows. They have to look at the legislation. You have to look at the competitors also. So many cities are looking at casinos.
International Game Technology (IGT-N)
They’ve teamed up with fantasy sports provider FanDuel to enter the New Jersey sports betting market. They are traditionally a slot machine business but they are moving heavily into sports betting.
streetTracks Gold E.T.F. (GLD-N) has more volume. Any weakness in the US$ could be a disadvantage to Canadian investors. Anywhere between 2% and 5% of an investor's portfolio should be in gold as a hedge against instability and uncertainty.
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.
(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.
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.
Very volatile sector. It is still on a downtrend. He would like to see the stock stop making lower highs.
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.
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.
(Top Pick Jan 30, 2009, Up 16%) Exercised rights that they issued. The rights issue diluted earnings. Management team has proven inept.
Happy trading !