3 US Sports Betting Stocks to Bet On

Sports Betting Stocks

In the past several years, the United States has undergone a major revolution in the field of sports betting. What once was illegal and taboo has now become commonplace. During just about any American sporting event, you’re likely to see advertising for various betting agencies.

In recent months, though, sports betting stocks have tanked across the board with practically no exceptions to the rule.  With this becoming a major growth area in recent years, it’s reasonable to wonder if investors can capitalize on the current market trends.

Luckily, a recent survey on sports betting in the US asked the American public what their most recognized and trusted brands are, providing potential investors with some insight into what companies to keep an eye out for.

The same survey shows that betting in the US is at an all-time high, with nearly 40% of Americans having legally bet in recent years despite online sports betting only being legal in about a third of the country. So, there is a ton of room to grow, with there clearly being a major public interest in online sports betting.

1. DraftKings ($DKNG)

The Boston-based iGaming company has become one of the biggest names in the US sports world over the last decade. Starting as a paid fantasy sports platform, DraftKings was quick to launch its sportsbook and casino once online sports betting was legalized in New Jersey in 2018.

The built-in player base was a huge advantage for the company, and they are currently the most-recognized sports betting brand in the country with 50% of Americans being familiar with the company.

However, this hasn’t translated to a ton of financial success yet. The company has yet to be profitable and the stock has crashed over 70% from its high point, now trading at about $14 per share.

DraftKings is a bit unique in this field as many of its competitors are more diversified online internationally (DraftKings Sportsbook is only available in the US and Canada), or with more brick-and-mortar casino operations. So, DraftKings is a bit of a risky play if its perch atop the online sports betting world collapses. It’s also a more-or-less independent entity, with no true parent company, meaning that it is ripe for acquisition or merger in the right situation.

Given its low price and the possibility of a merger, $DKNG is definitely a stock worth taking a look at.

2. Flutter Entertainment ($PDYPF)

The parent company behind FanDuel and FOX Bet, Flutter is a well-known and trusted sports betting brand across the globe. You may be more familiar with their European brands – Sky Bet, PokerStars, Paddy Power, and Betfair.

Given its international diversification, Flutter is a much different case than DraftKings. Its FanDuel brand is DraftKings’ closest competitor in the US market but has the backing of a major company. Additionally, the FOX Bet offering is the 5th-most recognized sports betting brand in the US despite not being the focus of the company’s American efforts.

On the surface, this seems like a more stable play than DraftKings. However, Wall Street agrees and Flutter’s share price of around $115 per share makes it one of the pricier sports betting stocks out there.

Believe it or not, that is actually the result of a major 50% fall since last autumn. So, despite being on the pricier side, it may be a good opportunity to buy the dip.

3. Penn National Gaming ($PENN)

Longtime casino and racetrack operator Penn National Gaming has bet on online sports betting in recent tears. Becoming the biggest investor in popular sports blog and podcast producer Barstool Sports led to the launch of Barstool Sportsbook in several states across the United States.

The company also bought theScore Media and Gaming in 2019, which also launched its own sports betting app the same year. theScore Bet is relatively minor in the US but is Penn’s flagship product in the recently-launched Ontario sports betting market.

Despite this, $PENN has dropped over 50% since October, now trading around $31 per share. Penn National is very diversified in the US, with plenty of brick-and-mortar casinos across the country to lean on while the online betting industry works itself out.

Like the other stocks listed here, it may be a good time to buy the dip on $PENN and invest in the future of US online sports betting.

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