Three Small Stocks Set to Run on Sports Betting Boom

September 11, 2019, By fierceinvestor,

The sports betting markets is just beginning to make big headlines.

This comes just a year after the Supreme Court struck down a 1992 federal law prohibiting states from allowing sports betting.  The original law forced states to prevent sports betting under their own laws, said CNN.  “The legalization of sports gambling requires an important policy choice, but the choice is not ours to make,” Justice Samuel Alito wrote in the 6-3 opinion. “Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own.”

So far, Caesars Entertainment partnered with Draft Kings to get into the game.

MGM just partnered with Buffalo Wild Wings to bring sports-betting to restaurants  across the country.  MGM also partnered with the NBA, the NHL, and MLS.

While the big guys are getting all the attention, smaller cap names could move on the news, too.

Penn National Gaming Inc. (PENN)

Penn National Gaming, a $2.4 billion stock, recently announced a good deal of partnerships with sports book operators, including with theScore Inc. giving it access to markets throughout the U.S. In addition, Penn National will give new partners DraftKings Inc, PointsBet USA Inc and The Stars Group Inc access to certain states where Penn National operates.

Boyd Gaming (BYD)

Boyd Gaming, a $3 billion stock, and Fan Duel Group partnered to introduce Fan Duel Sportsbooks, as well. In fact, they both just announced the debut of Fan Duel Sportsbooks at four Boyd Gaming properties: Blue Chip Casino Hotel and Spa in Michigan City, Indiana; Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Casino in Northwood, Iowa; and Belterra Casino Resort in Florence, Indiana.

William Hill (WIMHY)

William Hill’s aggressive expansion into the U.S. could see its sports books break through the $1 billion barrier, says Barron’s. So far, it’s been growing fast in the U.S. market.  And the company is excited.  In fact, Joe Asher, the group’s U.S. chief executive said: “Sports betting is starting to grow rapidly across many parts of the U.S. and that’s going to continue. Nearly a dozen states will have sports betting by year-end and the trend towards legalization is clear.”

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