Sports fans everywhere have taken it upon themselves to become even more invested in their favorite teams and players with online sports betting. Wagering on sporting events is nothing new, and more states will legalize sports betting in the coming years.
Online sportsbooks and gambling may not be a new concept, but investing in sports betting stocks is definitely a growing industry. Nowadays, it’s not enough to just place bets; it’s all about getting in on the action even further with smart stock investments into new markets.
Why So Much Growth for Sports Betting Stocks?
Based on stats from the past year, Zion Market Research estimates the global sports betting industry will generate a whopping $179.3 billion in revenue per year by 2028. Considering the massive growth potential, it’s no wonder why investors are buying up stocks now.
Whether you’re a sports fan or not, there’s no denying that buying sportsbook stocks is a smart investment. But is it safe?
Safety of the Sports Betting Stock Market
It wasn’t until 2018 that the federal ban on online sports betting was lifted. Compared to other countries, gambling real money on a US-based sportsbook site hasn’t been legal for all that long, which is why many people are still hesitant about the stock market related to it.
But there’s no need for this hesitancy, and investing in casinos or sportsbooks is perfectly safe. That being said, it’s important for investors to make smart purchases on legit companies, so doing your research is a must.
The good news is that many of these gaming companies are legit, and the same goes for the stocks associated with them. To put it into perspective, let’s take a look at Penn Entertainment Inc., formerly Penn National Gaming.
The gross profit margin of the Pennsylvania-based PENN Entertainment Inc. (NASDAQ: PENN) has nearly doubled in the past five years (45.97%). An article about PA online betting at Bonusfinder US also highlights that Pennsylvania is one of the largest markets in the US regarding sports betting.
PENN has dozens of properties in nine other states and they are always looking to expand their digital presence. In 2021, the company acquired sports media and betting organization Score Media and Gaming Inc. and a year later it partnered with Sports Betting Exchange in Louisiana.
When it comes to a legitimate entertainment company like this one, it’s pretty obvious that investing in it is safe – not to mention, wise!
Important Stock Market Safety Precautions
Whether it’s an online sportsbook company or another industry altogether, there are things you can do to make safe investments. Here are a few tips:
- Understand the market before investing
- Invest reasonably based on your finances
- Diversify your stock portfolio
Top 5 Sports Betting Companies to Invest In Right Now
These are the best sports betting stocks to watch, and more importantly, to invest in:
- PENN Entertainment Inc. (PENN)
- DraftKings Inc. (DKNG)
- Caesars Entertainment Inc. (CZR)
- Light & Wonder Inc. (LNW)
- MGM Resorts International (MGM)
Conclusion
When it’s all said and done, it’s perfectly safe to buy up the stocks of gaming companies, online casinos, and sportsbooks. Just be smart about your investments, and consider the revenue and growth of each company before pulling the trigger.
Keeping those things in mind, you can’t go wrong with major gaming companies like MGM Resorts International and PENN Entertainment.
