Investing in the Booming Sports Betting Market: Top Stocks to Consider

The landscape of sports betting in the United States has experienced a dramatic shift over the last six years, with the lifting of the federal ban by the U.S. Supreme Court leading to widespread legalization in over 30 states and Washington D.C. This has opened up a lucrative market for investors in sports betting stocks, with the industry booming and showing no signs of slowing down.

One of the top players in the sports betting market is DraftKings (DKNG), which recently reported impressive earnings in Q1 2024. With an unexpected EPS of $0.03 and revenue surpassing estimates at $1.1 billion, DraftKings has been on a trajectory of significant growth. The company’s focus on user engagement and cost efficiency has led to expansion into new states and the attraction of 3.4 million users.

Another heavyweight in the industry is Caesars Entertainment (CZR), known for its operations in 18 states and offering of sports betting in 31 jurisdictions. Despite facing risks, CZR remains attractive to investors, with analysts predicting a challenging EPS this year but high-side estimates for the future. CZR recently teamed up with the Fiesta Bowl Organization for a sports betting collaboration in college football bowl games, showcasing a commitment to enhancing the fan experience and promoting responsible gambling.

MGM Resorts International (MGM) is also well-positioned to capitalize on the growing popularity of gambling in the U.S., with a strong buy rating and significant undervaluation from analysts. The recent partnership with Marriott International to offer unique experiences at iconic destinations through the MGM Collection with Marriott Bonvoy further solidifies MGM’s position in the market.

Overall, the sports betting industry is ripe with potential for investors, and companies like DraftKings, Caesars Entertainment, and MGM Resorts International are leading the way with promising opportunities for growth and profitability in the years to come.