European sports betting giants Flutter Entertainment and Entain continue to fly in the U.S.

Jefferies called out Flutter Entertainment (OTCPK:PDYPY) and Entain (OTCPK:GMVHF) as two European gaming stocks benefiting from strong trends in the U.S.

Flutter and Entain are best-known for their European betting brands, but have burst onto to the scene in the U.S. over the last few years as U.S. states have legalized sports betting. In looking at sports betting data for the last month, analyst James Wheatcroft flagged several key data points from the first four weeks of action in the NFL. He said early signs remain encouraging for the bookmakers, with high engagement and betting activity across the board. He also noted that Kentucky online sports betting appears to have started strong in its first week of legalization, while New York registered a record week for betting handle. H2 Gambling Capital estimated that $923M was bet on the NFL during week four to mark a 35% increase from last season. Overall, Jefferies estimated that sports betting handle for the pro football season is up 40% to $3.77B.

The two Europe-based sports betting companies have a deep history in the industry. Entain is a multinational sports betting and gaming group operating through online and retail channels with leading brands that include Ladbrokes, Coral, bwin, PartyPoker, Foxy Bingo, and more . Entain also has a 50-50 joint venture with MGM Resorts International (MGM) in the U.S. Flutter Entertainment (OTCPK:PDYPY) is also global sports betting and gaming operator, with a portfolio of leading international brands that include Paddy Power, Sportsbet, Betfair, SkyBet, PokerStars, FOXBet, and U.S. heavyweight FanDuel.

On Seeking Alpha, Salix Research recently recommended that investors take a long position in Flutter Entertainment due to its high earnings growth and reasonably attractive valuation.

Sector watch: The G2E Global Gaming Expo in Las Vegas will be the center of the gaming universe this week. Keynote speakers covering the biggest topics in gaming include Churchill Downs (CHDN) CEO Bill Carstanjen, Entain (OTCPK:GMVHF) CEO Jette Nygaard-Andersen, MGM Resorts International (MGM) CEO Bill Hornbuckle, FanDuel (DUEL) CEO Amy Howe, and DraftKings (DKNG) CEO Jason Robins. Some of the gaming companies that will showcase their products include PlayAGS (AGS), Galaxy Gaming (OTCQB:GLXZ), International Game Technology (IGT), and Konami Gaming (OTCPK:KONMY). One of the companies being singled out by analysts is Everi Holdings (EVRI), which is expected to unveil 70 new themes across a variety of products.