With the Super Bowl just days away, investors may want to pay close attention to gambling stocks, like MGM Resorts (MGM) and DraftKings (DKNG).
For one, the Super Bowl is a major gambling event for both. Two, about 50 million Americans are expected to bet on Super Bowl LVII, a 61% jump year over, according to the American Gaming Association (AGA). The AGA added that:
30 million American adults plan to place a traditional sports wager online, at a retail sportsbook or with a bookie, up 66 percent from 2022.
28 million have plans to bet casually with friends or as part of a pool or squares contest, up 50 percent from 2022.
That’s a good deal of gambling money on the line.
Three, “Bettors plan to wager an estimated $16 billion on this year’s championship game, more than double last year’s estimates. With the expansion of legal sports betting, traditional Super Bowl wagers are expected to pass casual wagers for the first time ever.
Other than gambling, Anheuser-Busch (BUD) and Constellation (STZ) could gain traction. Unbelievably, according to Hungry Fan, Americans spend over $387 million on snacks, and $130 million on pizza. For beer, Super Bowl spend about $1.3 billion on beer in the two weeks leading up to the big game. Then, on game day, viewers will drink about 325 million gallons of beer.
Chicken wings will be under big demand, too. It’s anticipated we’ll eat up to 1.42 billion wings, and spend $2.07 billion on them. One way to profit from wings is with Wingstop (WING), which appears to have priced in the 2023 Super Bowl already.
And that’s just for the Super Bowl.
In the weeks following, we’ll jump right into March Madness, where sales of food, drinks, you name it, could be substantial.