Should I Invest in Sports Betting and Gambling Stocks?
As sports betting grows throughout the United States – although it is hard to top what is available in Las Vegas – due to more states legalizing sports betting, companies are jumping at the chance to open sportsbooks in these locations. Some of those itching at an opportunity to get into these new markets are publicly traded companies.
The list below includes five sports betting stocks everyone should know, where to find them and their stock code.
Five Sports Betting Stocks to Know
- DraftKings (NASDAQ: DKNG)
- Flutter Entertainment (OTCMKTS: PDYPY)
- Caesars Entertainment (NASDAQ: CZR)
- Penn National Gaming (NASDAQ: PENN)
- Roundhill Sports Betting & iGaming ETF (NYSEARCA: BETZ)
Stock Overview and Whether You Should Invest
Below is an overview of how the five stocks have done the last year and our thoughts on whether you should invest in them.
- Stock Value January 21, 2020: $13.83
- Stock Value January 20, 2021: $53.18
- Percentage Change in Value: 284.5%
DraftKings started as a daily sports fantasy game in the United States and Canada – but since has moved into the sportsbook business in states where sports betting is legal. DraftKings is one of the better-known sportsbooks trading and currently one of the more affordable sports betting stocks to invest in.
- Stock Value January 21, 2020: $57.32
- Stock Value January 20, 2021: $100.11
- Percentage Change in Value: 74.7%
Flutter Entertainment owns a mixture of online sports betting and poker sites that operate in many countries around the world. Their headquarters are located in Dublin, and they first started trading on the London Stock Exchange – two places with a much longer history with legalized gambling. While they showed solid growth over the last year, the price and growth are not as good as other stocks on this list.
Caesars Entertainment Inc.
- Stock Value January 21, 2020: $59.50
- Stock Value January 20, 2021: $80.05
- Percentage Change in Value: 34.5%
Unlike the other stocks on this list, Caesars Entertainment Inc. dabbles in other industries – owning over 50 properties and seven golf courses. While the company’s reach has allowed for a higher revenue potential than other sports betting stocks, it also means the company’s been hurt by the decline in travel and tourism this year – resulting in the smallest growth (percentage-wise) of the five stocks listed on this page.
Penn National Gaming
- Stock Value January 21, 2020: $25.18
- Stock Value January 20, 2021: $105.95
- Percentage Change in Value: 320.8%
Penn National Gaming showed exceptional growth last year – partly due to expanding into new markets and partly due to their acquisition of Barstool Sports. Buying up Barstool provides Penn National with a strong media presence, if not stronger than any other sports betting stock. Although the price is high, its growth has been consistent the last six months and worth investing in.
Roundhill Sports Betting & iGaming ETF
- Stock Value June 4, 2020 (date of IPO): $16.14
- Stock Value January 20, 2021: $29.47
- Percentage Change in Value: 82.6%
Since Roundhill Sports & iGaming is an ETF (exchange traded fund), it is different from the other options on this list. However, we think it is the best option on this list for investors. It holds over $125 million in assets, including Penn National Gaming and DraftKings stocks. It is also a lower price than any other options on this list and only changes a 0.75% fee. Also, because it holds multiple assets, it should continue to do well, even if one of its stocks takes a dip (enters the wrong market, losses significant on the Super Bowl, or deals with internal issues)
Invest: Yes – Best Investment