“What’s the spread?”
You’ve probably heard this betting phrase on pro sports broadcasts in recent years.
If you tuned in for the most recent Super Bowl pregame show, you heard it several times.
That’s because sports and gambling have always been connected.
But the widespread legalization of U.S. sports betting will make it as much of an American pastime as the sports themselves.
And that has created a massive investment opportunity…
Sports Betting Is Now Legal in 31 States
Nationwide acceptance of sports betting is at a tipping point.
According to the American Gaming Association and ESPN…
In 1993 when the federal ban on sports betting was put in place, only 44% of Americans were in favor of legalization.
Today that number stands at 80%, nearly double its 1993 level.
(Do you think sports betting should be legal? You can let us know at SmartProfits@BanyanHill.com.)
Americans’ change of heart has led to the legalization of sports betting in 31 states.
And in 10 of these states, sports betting is legal but has yet to become operational.
(Source: The American Gaming Association.)
As the 10 non-operational states come online, the industry will see an immediate boost.
A report from Ark Invest estimates annual revenue from U.S. sports betting will grow nearly fourfold from $9.5 billion to $37 billion between 2020 and 2025.
IBISWorld believes the market could be even bigger…
Forecasting that legalized sports betting will bring in $55 billion per year.
10X Growth Ahead
Sports betting is already accelerating…
Total bets placed in 2020 amounted to $18 billion, up 39% from the previous year.
And Ark expects this number to grow substantially in the next five years…
Increasing tenfold to $180 billion.
(Source: Ark Invest.)
Sports betting companies are gearing up for the opportunity…
Penn National Gaming Inc. (Nasdaq: PENN) acquired Score Media and Gaming Inc. (Nasdaq: SCR) for $2 billion.
DraftKings Inc. (Nasdaq: DKNG) bought Golden Nugget Online Gaming Inc. (Nasdaq: GNOG) for $1.6 billion.
Both in the last week.
Place Your Bets on This Opportunity
When industry giants are writing checks to get more skin in the game, you should take note.
To get exposure to the rapidly growing sports betting market, you can buy the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ).
You can join our subscribers at Strategic Fortunes to get access to our favorite sports betting pick.
Research Analyst, Strategic Fortunes