Top 3: The best sports betting stocks for Q4 2022
The sports betting industry has grown enormously recently, and with it has come many great investment opportunities, including in stocks. The internet has made it possible to bet on a range of sporting events from around the world, and smart platforms make it possible to gamble on the go. We can see that major players are presented as sponsors at some of the world’s biggest sporting events, and of the best teams in the world.
The sports betting industry in 2022
The sports betting market was valued at $76.75 billion in 2021, and is estimated to grow to $83.65 billion in 2022. The sector’s massive growth potential is already seeing several countries move to legalise gambling. Now you can bet on sports in a number of countries in the world, on international sites from the biggest players out there.
In addition, an enormous amount of money is spent on marketing and bonuses, which can give potential customers a greater advantage if they are interested in gambling at a casino or betting on sports. This change in the sports betting industry has meant that it can be beneficial to invest in some of the major players. If you are also interested in sports and gambling such as betting, then it can be extra fun for you to follow ups and downs in the industry. Let’s take a look at some of the stocks you can invest in.
First up we have Flutter entertainment, which has proven to be a very promising sports betting and gaming company operating in both the UK, Ireland, Australia and the USA. In the US market, it is the FanDuel asset that is most interesting, as it is the most popular online sports betting site in the country. Flutter entertainment has estimated that FanDuel’s share of online sports betting has grown to around 40% by the end of 2021.
FanDuel’s online sportsbook is available in 14 states in the country, and they also have an online casino that is available in five states. We also know that several states are working to legalise gambling, so these are numbers that may grow in the future. At the beginning of 2022, Flutter entertainment experienced a major boost, when sports betting finally became legal in New York. This is a huge market that showed huge ripple effects when they went live. Flutter entertainment was among nine companies that won an operating licence from the state.
In Europe, Great Britain and Ireland are the largest markets in Europe. Here too, Flutter entertainment is a leader in the more mature market. We are also seeing a shift where more games are being moved online, which gives Flutter entertainment a very good position in the growing market. In Australia they operate SportsBet, which according to Flutter itself has a market share of 50% of online sports betting, something that will probably grow as well.
The second largest sportsbook in the US is run by DraftKings, which sits at about 25% of the market according to internal estimates. They currently operate sports betting in 17 states, and online casinos in 5. DraftKings has bet completely on online gambling, and only operates here.
In addition, they are exclusively on the American market, and thus have no physical or international operations, either in sports betting or online casino. Although this may seem like a limitation, it is worth mentioning that the company has experienced great growth from the American, online market, and all the growth they are sitting on comes precisely from here. They also plan to invest heavily in growth within the American market, specifically in online sports betting.
From a digital company, to a physical company as well, we have MGM Resorts. They are perhaps best known for their graceful casino resort in Las Vegas, but are also a promising casino company. MGM resorts is actually one of the largest casino operators in the US and Macau. The latter is often called the Las Vegas of the East, and is a gambling capital in Asia.
The company also owns BetMGM along with the UK’s Entain. BetMGM themselves say that they are on track to take a share of as much as 20%-25% of the American online sports betting and gaming market, which is largely in the gaming industry’s favour. By the end of 2021, they had a 30% share in the markets where it operates its online casinos.
In addition to making great strides in the digital gaming and sports betting market, MGM Resorts’ brick-and-mortar casinos are beginning to recover from the effects of the pandemic. We see again that the traffic in Las Vegas has started to rise, and there is no doubt that people are still interested in gambling. In 2022 and 2023, the company will open two new hotels to support growth, which potentially means a large increase in value. There is also potential in the Asian market when you see that business in Macau is getting back on its feet.
Before you invest
Before you choose to invest in any of these shares, or in other sports betting shares you find, it is important that you find out how to invest in stocks. In particular, research the company and the market thoroughly. Although both the betting industry and these companies have done well in the past, it does not mean that it is a guarantee for the future. There is always a risk when investing, and you yourself are responsible for assessing whether something is a good or bad investment. A bit like gambling, it’s not always so good to know, but that’s also what makes it exciting!
Figures and statistics show that the gambling market is doing well, and it may seem as if the growth is never ending. A combination of opening up after a global pandemic, legalisation of gambling in a number of places, and a better online offer has given the gambling market many prerequisites for great success. Certain, huge players take up large parts of the market, and operate ambitiously in the hope of becoming the biggest. This is a company that can be smart to invest in, and which seems to have a very exciting and lucrative future ahead of it.