There is a stunning forecast from PlayUSA on the volume of sports betting that could be seen with this year's Super Bowl game. The firm forecasted that the Super Bowl sports betting handle could top one billion in wagers to roughly double last year's tally.
Betting on the game between the Los Angeles Rams and Cincinnati Bengals on February 13 will be legal in 30 states and Washington D.C. That list includes New York, which is off to a blistering start after sports betting became legal early in January.
"More than half of all Americans now live in a legal jurisdiction, and even well-established markets such as New Jersey and Nevada have grown significantly over the last year as mobile betting gains in popularity," noted PlayUSA data analyst Eric Ramsey on the sports betting backdrop.
Nevada is forecast to produce the largest Super Bowl handle with $175M, followed by New York with a projection for $160M.
For investors, the huge rush of sports betting has to be balanced by elevated customer acquisition costs and high-flying expectations on the total addressable market. Bullish analysts are looking past the near-term profitability concerns to see reasonable valuations on some stocks based off their two or three year EBITDA and EPS estimates.
The list of stocks that touch sports betting directly or indirectly include PlayAGS (NYSE:AGS), Kindred Group (OTC:KNDGF), Wynn Resorts (NASDAQ:WYNN), Gambling.com Group (NASDAQ:GAMB), Inspired Entertainment (NASDAQ:INSE), Bally's (NYSE:BALY), FanDuel/Flutter Entertainment (OTCPK:PDYPY), MGM Resorts (NYSE:MGM), Everi Holdings (NYSE:EVRI), International Game Technology (NYSE:IGT), Entain Plc (OTCPK:GMVHF), Boyd Gaming (NYSE:BYD), Penn National Gaming (NASDAQ:PENN), Evolution Gaming (OTCPK:EVVTY), Churchill Downs (NASDAQ:CHDN), Scientific Games (NASDAQ:SGMS), 888 Holdings (OTCPK:EIHDF), Playtech (OTC:PYTCF), Caesars Entertainment (NASDAQ:CZR), Genius Sports Limited (NYSE:GENI), Esports Entertainment Group (NASDAQ:GMBL), DraftKings (NASDAQ:DKNG), Golden Nugget Online Gaming (NASDAQ:GNOG), PointsBet Holdings (OTCQX:PBTHF), Sportradar Group (NASDAQ:SRAD), GAN Limited (NASDAQ:GAN), fuboTV (NYSE:FUBO), Rush Street Interactive (NYSE:RSI), Esports Technologies (NASDAQ:EBET), Elys Game Technology (NASDAQ:ELYS), Full House Resorts (NASDAQ:FLL), Skillz (NYSE:SKLZ), Golden Matrix Group (OTCPK:GMGI), Bragg Gaming Group (NASDAQ:BRAG), Paysafe (NYSE:PSFE),
Sector watch: Time to double down on sports betting and iGaming stocks?