Although an industry with a heritage dating back to the dawn of civilization, sports betting has generated significant controversy due to its association with organized crime. Additionally, the advent of the Internet and mobile connectivity technologies has enabled illegal bookmakers to run sports betting operations by circumventing tax laws. This is why it is important to know the best sports betting stocks when investing.
However, thanks to a pivotal court case in New Jersey in May 2018, any state wishing to legalize sports betting can do so. As a result, several states have moved to allow such activities, representing a considerable boon for sports betting stocks. Below are five of the most compelling ideas.
Best Sports Betting Stocks Right Now
Understanding Sports Betting Stocks
Like the North American cannabis industry, top sports betting stocks represented untapped potential. According to the Las Vegas Convention and Visitors Authority, between 2014 and 2019, more than 40 million tourists descended on “Sin City,” racking up huge revenues in the region’s gaming and convention industry. In other words, if sports betting were legal, relevant jurisdictions could benefit from an incredible (and taxable) revenue stream.
Unfortunately, before US legislation favorable to sports betting stocks was passed, criminal elements were using the platform to launder money. In 2014, a Reuters report detailed how nefarious organizations attempted to fix certain games. As a result, only the offenders profited from their racket. Meanwhile, several state budgets were strained while essential public services went unsupported. However, in 2018, the United States Supreme Court struck down a federal ban on sports betting, allowing individual states to make their decisions.
In principle, legalization makes sense because, as a now taxable business, sports betting operations will attract more attention and regulatory guidance. Theoretically, this should deter fun ventures due to the increased chances of getting caught. Better yet, the legalized gaming industry will likely generate job growth – an area in which the country has yet to recover. For example, the national employment level is still down about 5% from pre-pandemic levels.
Just as importantly, cutting-edge technologies helped top sports betting stocks weather a rough patch last year. When the COVID-19 pandemic initially disrupted the global economy, questions persisted about the viability of sporting competition. But thanks to mitigation protocols and mobile gaming apps taking over, the sports gaming market has become one of the biggest winners in stocks.
Best Online Brokers for Sports Betting Stocks
However, this improvement in trust is not only for physical products, but also for services. It is therefore possible that investor demand for sports betting stocks will increase in the coming months. If so, you should prepare to profit from this narrative by investigating both individual stocks and brokerages that cater to this market segment.
securely via the Centerpoint Securities website
Securely via the Interactive Brokers website
Active and global traders
securely via the Magnifi website
securely via the Webull application
Intermediary traders and investors
securely through the TD Ameritrade website
securely via the Plus500 website
86% of retail investor accounts lose money when trading CFDs with this provider. You need to ask yourself if you can afford to take the high risk of losing your money.
Features to Look for in Sports Betting Stocks
Here’s what to look for in sports betting stocks to potentially increase your profits.
Like any lucrative market, competition is fierce between these values. This is why it is essential that the underlying companies have attractive brands. Although consumer confidence has improved significantly from the April 2020 low point, it remains below pre-pandemic norms. This means companies must compete for a shrinking consumer base. Owning strong brands makes this job much easier.
When the COVID-19 crisis first hit the United States, major metropolitan areas, including Las Vegas, resembled ghost towns. Logically, this headwind harmed physical sports betting, which had to close its doors for several months. On the other hand, mobile operators kept the light. Given the uncertainties about how this pandemic will evolve, you should consider sports betting stocks related to diversified businesses.
One of the surprises that surprises new investors in speculative trading is that low volume can make you a loser even if you are a winner on paper. For example, wide bid-ask spreads suggest that you may have difficulty finding a buyer for your stock when you are ready to sell. Therefore, make sure your stocks have relatively robust trading activity before diving in.
More than just a roll of the dice
Sports betting has long been a part of the American fabric, but not always in a positive light. However, a groundbreaking court ruling has given sports betting stocks some much-needed legitimacy. It also brings more regulatory oversight to the sector, which should help eliminate corrupt activities.
On the horizon, the sports gambling segment offers investors an intriguing setup. Mainly, consumers crave normalcy and sports betting is a form of retail therapy. Additionally, enthusiasm is growing as crowds return in numbers, which bodes well for the best actions in this space.
Frequently asked questions
Sports betting is legal in every state in the United States if the state chooses to allow it. Since 2018, several states have done so.
Benzinga provides a list of the best sports betting stocks above.
Yes, there are several publicly traded sports betting companies. Some examples include DraftKings, Flutter Entertainment (owner of FanDuel), and William Hill. These companies have gone public and traded on stock exchanges, allowing investors to buy and sell shares.