If you’re looking for a way to make money betting on sports, there are many stocks to choose from. These include DraftKings (DKNG), Rush Street Interactive (RSI), BetMGM, and Churchill Downs (CZR). Read on to learn more. Investing in sports betting stocks is a way to diversify your portfolio and take advantage of a growing trend in the industry.
DraftKings (DKNG)
DraftKings stock is a great long-term investment opportunity in the sports betting UFABET industry. It has strong revenue growth and is one of the leaders of the online betting megatrend. While the stock is still over 70% below its 52-week high, the company is a good buy for those looking to capitalize on its fast growth potential. For more information, check out IBD’s daily stock market analysis.
DraftKings has attracted big institutional investors. For instance, Disney has invested in DraftKings, which may lead to tie-ins between the company and ESPN in the future. Moreover, there is still a lot of room for growth in the legal sports betting industry in the U.S., which was previously limited to a few casinos in Las Vegas.
Rush Street Interactive (RSI)
Although its top-line growth and price-to-sales multiple are impressive, Rush Street Interactive isn’t immune to the growing scrutiny of regulators and investors. As sports betting legalization grows, the company could see an increase in investor interest. However, the stock’s profitability and near-term prospects remain weak, with analysts expecting the company to post negative earnings per share for both this year and next.
RSI’s business model is centered on online sports betting and casino gaming. It provides a variety of game offerings, including free-to-play games. The company generates revenue from its offerings to both business-to-consumer (B2C) and business-to-business (B2B) customers.
BetMGM
BetMGM is a company that is a leader in the sports betting market. The company has an omnichannel presence, strong sports and media partnerships, and robust analytic capabilities. It plans to open betting operations in 20 states in the next year and expand to 24 over the long run. This will put the company in front of two-thirds of the US sports wagering population. Its management expects full-year revenue to be approximately $1.3 billion.
The business of sports betting is growing quickly. While the dominant companies are FanDuel and DraftKings, BetMGM is making a push into second place. The company has been expanding its sportsbook business while tilting its weight towards online gambling growth. However, the real action will likely come over the third largest sportsbook, DraftKings, which is positioned to remain No. 2 for some time.
Churchill Downs (CZR)
Churchill Downs (CZR) is the site of the Kentucky Derby, the world’s oldest horse race. It has been a major American sports event since 1875. The track has undergone numerous renovations and expansions throughout the years. Its most notable projects include the addition of a new turf course, improved paddock areas, and an upgraded clubhouse.
In 1907, a new mayor of Louisville, Kentucky, banned bookmaking at Churchill Downs. Bookmaking was the sole betting option at the track. However, Winn was able to track down some pari-mutuel machines that had been in use before the law was passed. These machines would divide up a pool of money bet and compute the winners’ returns based on the bets made. After a lawsuit, the law was amended to exempt the pari-mutuel machines.
Penn National Gaming (PENN)
Penn National Gaming (PENN) announced its second quarter financial results just before the market opened on Thursday. The Wyomissing, Pennsylvania-based company said its revenue reached $1.6 billion, beating Street expectations. Its net income was $26.1 million, with earnings per share of 15 cents. Adjusted EBITDAR (earnings before interest and taxes) came to $504.5 million, a 15% year-over-year decrease. This news sent the stock price to new highs.
While Penn’s stock has seen a huge drop in recent months, it is still trading below its 50-day moving average. However, the price has recovered a bit, and the stock is now trading at a more reasonable valuation. It is important to remember that Penn’s stock was down so far after its rival Caesars was added to the S&P 500 index.