by Fred Fuld III
Can you believe it? Now Disney (DIS) is getting into sports betting through its ESPN division and an agreement with Penn Entertainment (PENN).
Sports betting is legal in 37 states and Washington, D.C. as of August 2023. The first state to legalize sports betting after the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018 was New Jersey. Since then, there has been a rapid expansion of sports betting in the United States.
The states that have legalized sports betting have different laws and regulations governing the industry. Some states allow only in-person betting, while others allow both in-person and online betting. Some states have a monopoly on sports betting, while others allow multiple operators to offer sports betting services.
The growth of sports betting in the United States has been driven by a number of factors, including the popularity of fantasy sports, the increasing availability of mobile devices, and the legalization of sports betting in more states. The industry is expected to continue to grow in the coming years, as more states legalize sports betting and more people become interested in betting on sports.
Here is a list of the states that have legalized sports betting as of August 2023:
- Alabama
- Arizona
- Arkansas
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Montana
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
The future of sports betting in the United States is bright. The industry is expected to continue to grow in the coming years, as more states legalize sports betting and more people become interested in betting on sports.
DraftKings (DKNG): DraftKings is a leading online sportsbook and daily fantasy sports (DFS) company. It operates in 19 states and Washington, D.C., and has a market capitalization of $13.8 billion. DraftKings offers a variety of betting options, including sports betting, DFS, and iGaming. It also has a media division that produces content for its own platforms and for third-party partners.
DraftKings was founded in 2012 by Jason Robins, Matt Kalish, and Paul Liberman. The company quickly became one of the leading DFS companies in the world. In 2018, DraftKings launched its sportsbook in New Jersey, becoming one of the first companies to offer legal sports betting in the United States after the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA).
DraftKings has grown rapidly in recent years. In 2022, the company generated $1.3 billion in revenue and $463 million in net income. DraftKings is expected to continue to grow in the coming years, as more states legalize sports betting and more people become interested in betting on sports.
DraftKings is a publicly traded company on the NASDAQ stock exchange (ticker symbol: DKNG). The company’s stock price has been volatile in recent years, but it is currently trading at a market capitalization of $13.8 billion.
DraftKings is a well-positioned company to benefit from the growth of the sports betting industry in the United States. The company has a strong brand, a proven track record, and a diversified product offering. DraftKings is also well-capitalized and has a strong management team.
The company is currently generating negative earnings, however, annual sales growth for the last five years, is 63.5%, and quarterly revenue growth year-over year is 84.5%.
Penn National Gaming (PENN): Penn National Gaming is a casino and gaming company that owns and operates casinos, racetracks, and sportsbooks in 19 states. It has a market capitalization of $3.87 billion. Penn National Gaming is one of the largest casino operators in the United States and is also a major player in the sports betting industry.
Penn National Gaming entered the sports betting market in 2018, when it acquired theScore, a Canadian sports media company. TheScore operates a sportsbook in Canada and has a partnership with Penn National Gaming to offer sports betting in the United States.
In 2020, Penn National Gaming acquired Barstool Sports, a popular sports media and entertainment company. Barstool Sports has a large and engaged following of sports fans, which Penn National Gaming is hoping to leverage to grow its sports betting business.
Penn National Gaming is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong portfolio of casinos and racetracks, which can be used to attract sports betting customers. Penn National Gaming also has a strong brand and a proven track record in the gaming industry.
Here are some of the key things to know about Penn National Gaming’s sports betting business:
- The company operates sportsbooks in 13 states and the District of Columbia.
- It has partnered with Barstool Sports to offer sports betting in several states.
- It is also a major investor in theScore, a Canadian sports media company that operates a sportsbook in Canada.
- Penn National Gaming is expected to continue to grow its sports betting business in the coming years, as more states legalize sports betting and more people become interested in betting on sports.
The stock trades at a great six times trailing earnings and 12.5 times forward earnings. Quarterly earnings growth year-over-year was an incredible 987.9%, on a revenue increase of 7%. It has a superior price to earnings growth [PEG] ratio of 0.27, an excellent price to sales [PS] ratio of 0.59, and sells at 92% of book value.
Flutter Entertainment (PDYPY): Flutter Entertainment is a British gambling company that operates in over 20 countries. It is one of the largest online sports betting companies in the world and owns the Paddy Power Betfair brand.
Flutter Entertainment entered the United States sports betting market in 2018, when it acquired FanDuel, a leading online sportsbook. FanDuel has since become one of the most popular sports betting apps in the United States.
In 2020, Flutter Entertainment acquired TVG, a pari-mutuel online betting network, which is active in 35 states. TVG has a strong presence in the horse racing market, which is a growing segment of the sports betting industry.
Flutter Entertainment is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong portfolio of brands, a proven track record, and a global reach. Flutter Entertainment is also well-capitalized and has a strong management team.
Here are some of the key things to know about Flutter Entertainment’s sports betting business:
- The company operates sportsbooks in 18 states and the District of Columbia.
- It owns the FanDuel and TVG brands, which are two of the most popular sports betting apps in the United States.
- It is also a major investor in Adjarabet, a Georgian sports betting company that operates in several countries in Eastern Europe.
Flutter has a market cap of $34.3 billion, and is currently generating negative earnings. Revenues for the latest reported year were up over 27%.
Churchill Downs (CHDN): Churchill Downs is a horse racing company that owns and operates the Kentucky Derby and several other racetracks. It also has a sports betting app in Indiana and Illinois.
Churchill Downs entered the sports betting market in 2019, when it launched its sportsbook in Indiana. The company has since expanded its sports betting operations to Illinois and is expected to launch sportsbooks in several other states in the coming years.
Churchill Downs is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong brand, a proven track record in the horse racing industry, and a large customer base. Churchill Downs is also well-capitalized and has a strong management team.
Here are some of the key things to know about Churchill Downs’ sports betting business:
- The company operates sportsbooks in Indiana and Illinois.
- It is expected to launch sportsbooks in several other states in the coming years.
- It has a partnership with DraftKings to offer sports betting in several states.
This $9 billion market cap stock has a trailing P/E ratio of 26 and a forward P/E of 16.7. Earnings per share growth this year was a strong 81.2% and quarterly sales growth was up 31.9%. The company even pays a small dividend, providing a yield of 0.29%.
MGM Resorts International (MGM): MGM Resorts International is a casino and resort company that owns and operates casinos, hotels, and entertainment venues in 17 countries. It also has a sports betting app in Nevada, New Jersey, and several other states.
MGM Resorts International entered the sports betting market in 2018, when it launched its sportsbook in Nevada. The company has since expanded its sports betting operations to New Jersey and several other states.
MGM Resorts International is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong portfolio of casinos and resorts, which can be used to attract sports betting customers. MGM Resorts International also has a strong brand and a proven track record in the gaming industry.
Here are some of the key things to know about MGM Resorts International’s sports betting business:
- The company operates sportsbooks in Nevada, New Jersey, and several other states.
- It has a partnership with BetMGM, a joint venture with Entain PLC, to offer sports betting in several states.
- It is also a major investor in BetMGM, which is one of the leading sports betting companies in the United States.
This $16.9 billion company trades at 44 times trailing earnings and 16 times forward earnings. Earnings per share growth this year jumped.44.6%. The very small dividend yield is 0.02%.
These stocks are all poised to benefit from the growth of the sports betting industry in the United States. As more states legalize sports betting, these companies will be well-positioned to capture a share of the market.
Disclosure: Author didn’t own any of the above at the time the article was written.
