Five Stocks Set to Rise From Legalization of Sports Betting in United States
Sports Betting in the United States has proven to be quite the lucrative venture for states that agreed to make it part of their culture. States like New Jersey have been the most active, with upwards of $3 billion wagered since inception.
Just one year ago, the Supreme Court ruled in favor of legalized sports betting, and many of the industry’s big names have been looking for their chance to cash in.
Now, five companies are set to be just as successful in the stock market – a case of one hand washing the other. Most of them are companies from the United Kingdom, striking major deals with partnerships over here on our side of the pond just ahead of the NFL season set to begin in September.
Boosted Companies
The companies that are set to see a big boost in their stock portfolio are 888, Boyd Gaming Corporation, Flutter Entertainment (formerly known as Paddy Power Betfair plc), GVC and William Hill.
888 has made its way into the sports betting landscape in America by opening a sportsbook in New Jersey with 20 employees. They are the first online gaming company to get a sponsorship deal with an NFL team, the New York Jets. The company, which is headquartered in Gibraltar, has been somewhat selective in going forward in European markets and, when regulated, plan to do more business in the United States.
Boyd Gaming Corporation has profited well from a number of different acquisitions and partnerships. They partnered with MGM last year to share online and mobile gaming platforms and even struck a deal with Flutter subsidiary FanDuel. Boyd has had its shares rise 26 percent so far this year and opened two sportsbooks at its Mississippi locations while planning to open four more at venues in Indiana and Iowa.
Flutter Entertainment, which always went under Paddy Power Betfair, acquired FanDuel last year. They have increased their United States revenues by 47 percent in the first quarter and have continued to soar upwards since then. FanDuel’s huge market share in New Jersey has been a big reason for the company’s massive growth. Flutter is ready to launch in Pennsylvania, thus giving them an optimistic outlook going forward.
GVC and its massive expectations are tied together with MGM, the biggest casino operator in the United States. Joint venture chief executive Adam Greenblatt is expecting a potential market of “really avid sports fans” that is 75 percent larger than the United Kingdom to emerge within the last couple of years. Just this week, GVC reported a 16-percent online revenue growth in the second quarter, which offset some of their retail mishaps in the United Kingdom.
Last, but not least, William Hill and its U.S. partner Eldorado had strong returns because of their partnership. Eldorado’s $17.3 billion deal to buy Caesars Entertainment has made things even better for the company which resides in the United Kingdom. Earlier this month, William Hill announced they would be closing 700 of their locations following an investigation into fixed-odds betting terminals, which also suggests they could put more cash into the United States venture.
All in all, the world of sports betting is in the best place it has ever been. Look for more companies to find themselves on this list in the near future.
