Sports Betting Is Soaring — And These Four Stocks Can Put You in the "End Zone"
The NFL season officially kicked off with a "Thursday special" last week, with Detroit Lions head coach "Motor City" Dan Campbell pushing his team to victory against the Super Bowl champ Kansas City Chiefs 21-20.
The upset — and speculation about the Chiefs losing their "edge" — dominated the headlines.
But hidden behind those headlines and the buzz that continues is the real story — and the real opportunity that's arrived as this new NFL season heats up.
A record 73.5 million Americans plan to place a wager during this NFL season.
We're talking about a dramatic 68% jump from the estimated 46 million folks who made NFL-related bets last season.
And there are four companies — all publicly traded — that are benefitting in a big way. Derby City Insights Senior Analyst Andy Swan is watching all of them.
Swan's a master at identifying powerful trends — like sports betting — long before they take off. He tells his readers early on — and shows them the best way to act.
The ongoing wave of sports betting legislation — now legal in Washington D.C. and 34 states — is giving millions access to wagers on football, baseball, basketball, and other sports.
Technology is helping drive this, making it easier for folks to find, understand, and place bets — and for winners to cash out in minutes.
So let's review the four companies on Andy's moneymaking watchlist.
With Nvidia's dominance in AI, its trailblazing technology, and the escalating demand for AI applications it makes a robust candidate for continued growth.
But if you feel like you missed out on Nvidia's meteoric rise, and you don't want to wait around for a pullback, there are smaller players out there ready to breakout...
So far this year, 70% to 90% of sports betting is done online.
Andy says that DraftKings Inc. (DKNG) and FanDuel-owner Flutter Entertainment (PDYPF) lead the pack, with market shares of 32% and 45%, respectively.
And while other players like BetMGM, Caesars Sportsbook, and Barstool Sports are in the race, they're trailing behind.
Andy's data from Likefolio shows DraftKings and FanDuel are in a fierce battle for web traffic, hinting they may be doing the best job of onboarding new sports bettors:
Old-School Betting
While technology makes betting easier, some still like to wager "old school," digging the ritual and emotional jolt of the in-person betting experience offers.
As more states roll the dice on sports betting, certain companies will benefit more than others.
In that regard, PENN Entertainment Inc. (PENN) and Churchill Downs Inc. (CHDN) are both on Andy's radar.
LikeFolio's happiness stats give Churchill Downs a slight edge over PENN, making it a potential favorite for investors.
Last June, Andy's consumer insights machine triggered buy alerts on five gambling stocks.
Four out of five of those picks have rocketed by double or triple digits in the months that followed — with one of them zooming as much as 168%.
If you missed that, fear not: There's still a hefty upside. With sports betting still not legalized in every state in the union, this industry is just getting started… and so are the opportunities for investors.
By 2027, we could be talking about a $14.4 billion industry — for online sports betting alone.
Powerful trends with that kind of "staying power" is how investing wealth is created.
TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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