Keep an eye on sports betting stocks.
Just days ago, New York Gov. Cuomo signed 2022 budget legislation that includes plans to allow online sports betting. “The state will select two online platform providers for the program, with bidding expected to run throughout 2021, according to ESNY, as quoted by Sports Illustrated.
The state now joins Nevada, Rhode Island, Pennsylvania, Colorado, Illinois, Indiana, Iowa, Michigan, New Hampshire, New Jersey, Oregon, Tennessee, Virginia, West Virginia, and Washington, D.C. in legalizing sports betting.
With more states likely to join in, keep an eye on stocks like DraftKings (DKNG), Penn National Gaming (PENN), fuboTV (FUBO), and MGM (MGM). With MGM for example, the company’s betting app BetMGM could grab up to 25% of market share, and see up to $1 billion in net revenue by 2022, as reported by Investor’s Business Daily.
Or, Look into Related Sports Betting ETFs.
For example, look at the Roundhill Sports Bettering & iGaming ETF (BETZ), which last traded at $32. Not only does it offer diversification in the sports betting market, it does so at less cost.
Some of its top holdings include DraftKings, Flutter Entertainment, Rush Street Interactive, Penn National Gaming, and Scientific Games Corp.
If you were to buy 100 shares of each of those stocks, it would cost you tens of thousands. However, if you were to pick up 100 shares of BETZ, it’d cost $3,200 – and still give you exposure to those other top stocks.
Or, look at Van Eck Vectors Gaming ETF (BJK)
At $55, the BJK offers exposure to gaming stocks such as Flutter Entertainment, Evolution Gaming, DraftKings, Las Vegas Sands, Galaxy Entertainment, and Caesars Entertainment. At the moment, BJK is consolidating just above $55 a share. From here, we’d like to see a break to $60 a share, near-term.