Winning Big! Stock Prices Strong for Sportsbook Companies

Legal US sportsbooks are booming right now, and it’s no surprise why. These innovative, user-friendly sites offer the opportunity to bet on a huge range of sports, whether at home or on the go, and even get involved live, as a game unfolds. It’s not just site users that are scooping big wins; the parent companies behind some of these sites are enjoying a surge in their stock prices too.

The Big Players

Some of the largest sportsbooks in the business include DraftKings, owned by DraftKings Inc., known for its diverse betting options, FanDuel, owned by Flutter Entertainment plc, and BetMGM, owned by MGM Resorts International. Other major players are Caesars Sportsbook, owned by Caesars Entertainment Corp, and Bet365, owned by the Bet365 Group. The latter is widely considered one of the best betting sites for in-play features and use of advanced tech.

Strong Stocks

Flutter Entertainment, owner of FanDuel, one of the most popular online betting sites in the US, has seen healthy stock prices for the last few years, despite growing competition in the online betting industry. By the end of 2023, the company’s market share had reached around 43%, and it remains well-positioned to see continued growth.

Another behemoth of the sportsbook world, DraftKings’ stock prices have also demonstrated considerable resilience, and some experts predict these could rise to a multi-year high by the end of the year. This is largely the result of a healthy balance sheet and new opportunities the company is working hard to leverage.

Caesars Entertainment is also generally considered to be a leading gambling stock, with prices up around 5% YTD in February of this year, and analysts are optimistic about prospective shareholder returns.

How to Invest

If you’re considering investing in the parent company of a US online sportsbook, it’s vital to first fully understand the potential risks. After all, there’s a chance you could lose your entire investment. Undertake as much research into the company as possible, and choose a reputable broker or investment platform. In terms of the latter, consider the range of offerings available, and the security of the platform – is it regulated and above board? For stocks and ETFs, you can expect to enjoy commission-free trading via investing platforms, but be sure to check that this is the case.

Once you’ve chosen your broker or platform, it’s time to open and fund your trading account. Now you can choose the sports betting stocks you want to invest in; as part of this process, read up on the relevant analyst findings and financial reports on the company, to get as full a picture as possible.

A Positive Outlook

While, like all industries, the online gaming sector will inevitably experience ups and downs, it has a largely positive outlook regarding shareholder returns. With more states relaxing laws on online gambling and a growing online audience, many parent companies are thriving, which is reflected in their stock prices. Be sure to undertake due diligence if you’re considering investing, and who knows, you just may hit a winning streak!