We love to bet on sports. According to the American Gaming Association, $7.61 billion was bet on the Super Bowl in 2021. In 2022, the AGA estimated that more than $8 billion would be wagered. While 2023 estimates aren’t out just yet, we believe bets could run to nearly $9 billion. That being said, investors may want to invest in sports betting stocks, such as:
DraftKings stock saw a bump ahead of the Super Bowl over the last couple of years. We expect to see another one heading into the 2023 game. Helping, Citi analyst Jason Bazinet thinks DKNG is a buy, with a price target of $24. “The stock offers compelling potential rewards relative to the risks, while the company is on track to hit its long-term goals,” as noted by Barron’s.
Even better, DKNG could be profitable sooner than expected, according to Casino.org. That’s the take of Morgan Stanley analyst Stephen Grambling, who rates the stock with an outperform rating, with a $20 price target. “We expect an inflection in profitability in 2023 to surface value from the company’s NOL (net operating loss) and decouple the stock from the broader ‘unprofitable tech’ basket,” he added.
Flutter Entertainment (PDYPY)
Operating FanDuel, Flutter Entertainment is another hot betting stock to consider. Not only could the 2023 Super Bowl help, but so could forecasts for profitability. As noted by Yahoo Finance, “The company, which is owned by European-based Flutter Entertainment, believes it can multiply its 2022 revenue by five times when the sportsbook operator reaches maturity.”
And, according to Flutter Entertainment CEO Peter Jackson, “The base is growing. That’s not just for new states we are adding — that’s growth and penetration in states…Revenue from each [new legalization] cohort is growing every year. So the customers we have are doing even more business with us, and we’re increasing the penetration of the states and we’re laying on top new states.”
Roundhill Sports Betting & iGaming ETF (BETZ)
Or, investors can jump into an ETF that invests in sports betting stocks. With an expense ratio of 0.75%, the $16 ETF offers diversification with Entain PLC, Flutter Entertainment, Penn Entertainment, DraftKings, Churchill Downs, MGM Resorts, and many more. What’s nice about an ETF is that it offers greater exposure at less cost.