Top 10 Gaming and Sports Wagering Stocks on the Rise

The stock market isn’t having its best year in 2020. When the coronavirus pandemic reared its head in North America, the stock market tanked. That downward spiral continued for some time, as businesses and employees alike awaited the reopening of many businesses.

As that now begins to happen into June and July, many analysts say that this is the perfect time to buy. And certain sectors of the gambling market have particular potential.

US Gambling and Sports Betting Market

When nearly everything from professional sports to horse racing shut down, sports betting suffered. However, online betting sites stayed afloat because of the option to bet on other things – politics, games, etc. – and even horse racing (without spectators).

It quickly became apparent that online gambling options were vital to companies that wanted to draw some revenue during a trying time such as a health pandemic. With the technology to do it and the protections for customers, more locations around the world than ever are considering internet gaming.

As the stock market begins to recover from months of economic devastation, some stocks on Nasdaq are ripe for the picking.

  1. DraftKings (DKNG)

Nearly every analyst and trading firm puts DraftKings at or near the top of the list of recommended stocks.

Not only is DraftKings the king of the US fantasy sports market with 60% of it, the company has been growing exponentially. Late in 2019, DraftKings merged with Diamond Eagle Acquisition and SBTech for sports gambling. The company was recently valued at $15.5 billion.

  1. Flutter Entertainment (PDYDF)

Most analysts also recommend an investment in Flutter Entertainment, formerly known as Paddy Power Betfair.

The company has been involved in numerous mergers and acquisitions in recent years, the most recent being with The Stars Group, parent company of PokerStars. The newly-enlarged Flutter has a very large presence in Australia with regard to sports betting, as well as across Europe and North and South America. Flutter also bought FanDuel, the primary rival of DraftKings.

  1. MGM Resorts (MGM)

One of the largest gambling companies in the world, MGM Resorts maintains a portfolio of land-based properties from Macau to Las Vegas. Further, though, the company has worked hard to build its online sports betting and gambling profile.

In 2017, MGM launched PlayMGM and BetMGM for online sports betting and casino games, which will expand. And a venture with GVC Holdings will further extend the company’s reach into the virtual betting world. The most recent move came in October 2019 when MGM established a sports betting partnership with Yahoo Sports.

  1. Eldorado Resorts (ERI)

While the deal is still pending, awaiting some final regulatory approvals, Eldorado Resorts and Caesars Entertainment reached a massive agreement in 2019 for the former to buy the latter. Many estimated the deal to be worth more than $17.3 billion.

Eldorado has connections to William Hill, but Caesars has more of a hold on sports betting in the US market. Caesars is not only the official casino partner of many major American sports leagues and broadcasting networks, it owns the World Series of Poker brand, which operates online casino and poker sites in Nevada, New Jersey, Delaware, and soon Pennsylvania.

  1. Penn National (PENN)

Diversity is Penn National’s strength. From racetracks to casinos, Penn National has a presence across the United States, including the Hollywood Casino brand. The company also owns a large portion of Barstool Sports.

That last partnership may be the most promising in the coming months and years, especially with the launch of the Barstool Sportsbook. This will allow Penn to truly compete with MGM and DraftKings.

  1. 888 Holdings (EIHDF)

While sometimes categorized by its popularity in poker or bingo alone, the entire 888 brand is a continuously growing brand in the gambling world. It consists of bingo, online poker, a widely popular online casino, and a growing sports betting brand.

Beneath the surface, the 888 software platform holds a unique place in the burgeoning US online poker and gambling market. It is the platform on which the WSOP site operates in three – soon to be four – states in America.

  1. Churchill Downs (CHDN)

In addition to being one of the most popular racetracks in the world, Churchill Downs is also a corporation that owns more than a dozen racetracks in the US.

It’s key to further success in this changing market, however, is its TwinSpires and BetAmerica brands. The former offers online and mobile betting on horse racing, while the latter serves sports bettors. Together, they have immense potential in a market that will eventually see most brands forced to go online.

  1. Esports Entertainment (GMBL)

Esports have long been popular throughout the world, though more so in Asia before storming North America. In the traditional sense, esports involves competitive video gaming, which is an industry boasting of millions of fans around the world in itself.

Esports Entertainment has a particular eye on esports betting and calls its genre “licensed next generation online gambling.” It is relatively new and inexpensive as a gambling stock.

  1. Boyd Gaming (BYD)

By building a strong sportsbook business in Las Vegas, as well as in other parts of America, Boyd Gaming set itself up for the new US market. They key is that it operates inside and outside of the highest profile casinos.

What makes Boyd exceptionally strong in 2020 is its partnership with FanDuel. And as more states open to sports betting, Boyd is poised to be there with one of the biggest names in the business.

  1. Scientific Games (SGMS)

For a number of years, Scientific Games has been one of the leaders in slot machines and other casino gaming equipment. But its diversity makes it unique, as it also deals in online lottery products, lottery terminals, interactive gaming terminals, social gaming, and sports betting.

During the coronavirus shutdowns, Scientific Games stock took a hit but saw its digital revenues rise significantly already in 2020. Its stock price has been rising in the past month and looks to continue on that path.


Jennifer Newell

Jennifer Newell

Jennifer Newell has been writing about poker and gambling since 2004. From her days in the WPT offices to covering summers of WSOP tournament action, she also followed gambling legislation to Washington D.C. and women-only poker to the Bahamas. Meanwhile, she lived in Los Angeles and Las Vegas for many years before moving back to her hometown of St. Louis, Missouri. Now, Jen travels less, writing about poker and online gambling from her home with her two dogs watching her every move. In her spare time, she follows politics, works on her never-finished novels, and learns Italian in the hopes of retiring to Italy someday.

If you want to know more, you can follow Jen on Twitter @WriterJen


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