The COVID-19 pandemic hit many businesses across the world but there were some which prospered, including the online gambling industry. Not long into the pandemic, professional sports returned across the world and this allowed online sportsbooks to get up and running again quickly. Looking for something entertaining to do during lockdown, millions of sports fans used online sportsbooks as a form of entertainment, even those who have never gambled online before in their lives.
As a result, investors started to look at sports betting stock as a good form of investment. As we continue through 2021 and beyond, everyone hopes we are going to see fans return to sporting arenas. This could lead to even more people having a wager on sporting events and with that in mind, what is the best US sports betting operators’ stock to watch?
For some time now, due to their fantasy sports operation, to name FanDuel the most popular operator within the United States, would be a solid prediction. This brand has been in business online for a lot longer than mobile sports betting has been legal in the US. However, they have yet to float on the stock market but that could be about to change. There have been rumors of a potential listing of a small stake in FanDuel in the United States, but this does not seem to have gone down well with Flutter Entertainment stocks. The stocks went down in value following the resignation of Matt King, chief executive officer of FanDuel Group.
With that in mind, it may pay to look elsewhere and one of the leading US sports betting operators’ stock to watch is DraftKings. Much like FanDuel, DraftKings started life as an online fantasy sports website but has since expanded to include a sportsbook. Analysts have been watching DraftKings stock for some time and believe it is projected to grow 66% in 2021 and 40% in 2022. However, tempting this may be, it is worth remembering DraftKings is not yet profitable and that may be the case until mid-way through 2022.
Moving on and we come to Penn National Gaming. In addition to live racetracks, Penn National Gaming operate video gambling terminals and online casinos. They have recently acquired a 36% stake in media and sports-betting company Barstool Sports and experts expect to see Penn National Gaming stock bounce back in 2021 and 2022, rising to earnings per share of $2.56 .
Finally, MGM Resorts have been making waves in the online sports betting world thanks to the introduction of BetMGM. The online brand entered seven new states in 2020 and has recently become available in Iowa, Michigan, and Virginia. News has also emerged of a potential partnership between BetMGM and Topgolf, providing a new type of sports betting experience. Analysts are expecting 2022 to be a big year for the BetMGM brand and that should reflect in their stock price.
So, there are plenty of US sports betting stocks that are worth a closer look in the second half of 2021 and into 2022.
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