26 Million Americans Are Asking Themselves This One Question
This Sunday, February 7, will mark our 55th Super Bowl.
And even though the lingering coronavirus will give this year's showdown a much different feel, I can't wait for kickoff.
This year's matchup is one for the ages. You have the greatest quarterback of all time, Tom Brady, now of the Tampa Bay Buccaneers, going head-to-head with the greatest quarterback of today, Patrick Mahomes of the Kansas City Chiefs.
It's going to be a barn burner for sure.
Looking at the betting lines, Kansas is -3 as I'm writing pretty much across the board.
Source: thelines.com
The $6.8 billion question is where are you putting your money?
26 Million Americans Are Asking Themselves the Same Thing
The American Gaming Association estimates that 26 million Americans will wager approximately $6.8 billion on this year's Super Bowl, as reported by CNBC.
That's a lot of money moving in one day.
Unfortunately, I won't be joining in with the other 26 million folks betting on Sunday's big game. My state currently does not allow online betting through companies like DraftKings Inc. (NASDAQ: DKNG), FanDuel, or William Hill (OTC: WIMHY), and I won't have the chance to make it to one of our casinos.
But the action is indicative of a much greater trend, and as players in the stock market, we can hit the jackpot on it.
Currently, sports betting is legal in over two dozen states, with online sports betting legal in 14 of those states. It's only a matter of time before online sports betting will be legal in all 50 states. There's too much money for our tax-hungry representatives to pass up.
Plus, the economic fallout caused by the coronavirus pandemic has only increased the momentum for many states to tap this windfall of cash. CNBC reports that $17 billion in taxable cash has been legally wagered "since the Supreme Court overturned a federal law in May 2018 that had banned sports betting in most places."
Looking forward, five states - Maryland, Louisiana, Washington, South Dakota, and North Carolina - now have some form of pending legislation to legalize online sports betting. Another 14 states have also seen a strong push to enact legislation within the next year.
But this story extends well beyond our own borders. These gambling companies are global ones, and there are more ways for people to gamble their money than on sports.
That makes the opportunity in front of us even greater.
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Go Long on Gambling Stocks
According to Statista:
The global online gambling market is anticipated to be valued at more than $92.9 billion in 2023. The current size of the market is almost $59 billion, meaning the size is forecast to double in the upcoming years.
This represents incredible growth potential, and as gambling companies become more nimble and technologically advanced, I expect this sector to continue to offer strong returns over time. It's still in the very early innings of the surge, and now is the time to strike.
And the online sports betting companies aren't the only ones who will benefit. This tide is raising all boats.
CNBC's report also notes brick-and-mortar sportsbooks will see "a 25% increase from last year" and that 5 million Americans will place bets online or on mobile platforms, representing "a 19% increase from last year."
As for where to park some funds? There are plenty of options in this space. DraftKings, William Hill, and Penn National Gaming (NASDAQ: PENN) will put your money in online-first companies. The one-year performance of all three of these companies is fantastic. And while a lot of this growth is attributable to folks bored at home due to the pandemic, gambling is like smoking - most people just don't quit. These players are here for the long term.
There are also more traditional names that offer brick-and-mortar and online gaming like Caesars Entertainment Inc. (NASDAQ: CZR), Wynn Resorts Limited (NASDAQ: WYNN), and MGM Resorts International (NYSE: MGM).
If you're more risk-averse, instead of playing inside, you can play outside.
The VanEck Vectors Gaming ETF (NASDAQ: BJK) is up nearly 4% over the past few days, and the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ) is up roughly 3% in the same time frame.
To your wealth, Sean McCloskeyEditor, Energy and Capital After spending 10 years in the consumer tech reporting and educational publishing industries, Sean has since redevoted himself to one of his original passions: identifying and cashing in on the most lucrative opportunities the market has to offer. As the former managing editor of multiple investment newsletters, he's covered virtually every sector of the market, ranging from energy and tech to gold and cannabis. Over the years, Sean has offered his followers the chance to score numerous triple-digit gains, and today he continues his mission to deliver followers the best chance to score big wins on Wall Street and beyond as an editor for Energy and Capital.
@TheRL_McCloskey on Twitter