Big changes are on the horizon for the gambling industry. Jumping in now could make you a winner.
We’ve talked a lot about how cannabis companies have significantly benefited from improving public opinion, but there’s another group of “vice stocks” that are also making huge gains from more and more states passing new legislation.
In the November election, four more states – Maryland, Nebraska, South Dakota, and Louisiana – voted to allow sports gambling.
While casino stocks like MGM Resorts International (MGM), Wynn Resorts, Limited (WYNN), and many others were boosted from the election results, it’s a relative newcomer to the gambling industry also stands to benefit greatly.
The popularity of fantasy sports has exploded over the last decade. In the U.S. and Canada alone, the number of fantasy sports players has increased an unbelievable 270% since 2003. From 2015 to 2020, revenue from fantasy sports skyrocketed from $2.6 billion to $14.4 billion.
And even though you may have missed out on the profits that came shortly after the election, there’s good reason to believe that the sports gambling industry has plenty more room to run.
Where’s the money?
Even though sports gambling has been legalized, it doesn’t mean that the money starts flowing instantaneously. There are huge legislative and logistical hurdles to overcome to set up a sportsbook. And that takes time.
In fact, the four states that legalized sports gambling in November – along with two other states that passed legislation in 2020 and 2019 – have yet to accept even a single sports bet.
So even though the forward-looking market has given gambling stocks some positive momentum, the biggest profits are likely yet to come.
In 2021, sports betting revenue is projected to reach $2.5 billion, and by 2025, that figure is expected to grow to $8 billion dollars.
And with an additional ten states currently considering legislation to legalize sports gambling, the sky is the limit for this industry.
But where should you be putting your money in this exciting space?
How do I get some?
In my opinion, fantasy gaming companies may have a big advantage here. Their ready-made platforms can easily be launched in new states, likely much faster than casinos are able to set up their own sportsbooks.
And the convenience of mobile applications will likely attract more users to fantasy sports platforms – not to mention that many casinos remain closed or at limited capacity due to the pandemic.
Fantasy is here to stay and will be the wave of the future with more entertainment moving online. I think DraftKings Inc. (DKNG) is a great long-term buy and I think it will go higher. I would recommend buying on any pullback because this is the best way to play the sports gambling world.
Speaking of Profit Potential…
As the fantasy gaming market likely continues its incredible rise, I’ll be keeping a close eye on it.
2021 is already shaping up to be full of opportunities, and my Super Options readers and I have been taking advantage.
In fact, less than three weeks into the year, we’re already up 27.95% for all closed positions!
We have a lot of exciting things coming up, and I want you to be on board when it’s time to reveal the next big winner. Click here now to reserve your spot.
In the Spotlight:
Shares of AMC Entertainment (AMC) rose over 30% during yesterdays trading as it announced a new debt deal to provide the struggling theater company some desperately needed liquidity.
The $100 million will be put to work in helping AMC stave off bankruptcy, but I don’t know if it will be enough. Like I’ve said here before, unless something drastically changes soon and they’re able to start packing theaters again, I believe AMC will be back in hot water before long.
In my opinion, there are better places to put your money to play the post-COVID economic rebound. And I’ll be sharing some of my favorites right here in Profit Pregame as we get further into the recovery. So keep any eye out every weekday for my latest updates…