The sports betting industry consists of companies that allow people to bet on the outcome of sporting events such as horse or dog racing or football and soccer matches. Some companies in the industry operate as betting offices, which are bookmakers for sports betting, while other companies provide software and technology platforms to enable other companies to operate as bookmakers. Many of these companies offer additional services, including owning and operating casinos and online betting services. Among the biggest names in the business are DraftKings Inc., Ireland’s Flutter Entertainment PLC. and Caesars Entertainment, Inc.
Sports betting in the US has grown significantly since the Supreme Court struck down a federal ban on the activity in 2018. A U.S. ban that limited Nevada’s legal sports betting market had been in place since 1992. Since the ban was lifted state governments have introduced legislation to allow companies to provide legal betting on a wide range of sporting events, both retail and online.
- Sports betting in the US has grown significantly since the Supreme Court struck down a federal ban on the activity in 2018.
- 30 states and Washington DC have legal live sports betting available.
- The sports betting industry has lagged significantly behind the wider market over the past year.
The sports betting industry represented by the Roundhill Sports Betting & iGaming ETF (BETZ), has fallen significantly behind the broader market over the past year. BETZ has delivered a total return of -52.5% over the period, well below the Russell 1000’s return of -12.5%. This market performance figure and all data in the tables below are as of September 19, 2022.
Here are the top three sports betting stocks with the best value, fastest growth and strongest performance.
These are sports betting stocks with the lowest 12-month lag price-earnings (P/E) ratio.. Because profits can be returned to shareholders in the form of dividends and buybacksa low P/E ratio indicates that you are paying less for every dollar of profit generated.
|The most valuable shares for sports betting|
|Price ($)||Market Cap ($B)||12-month trailing P/E ratio|
|Light & Wonder Inc. (LNW)||49.47||4.7||1.3|
|MGM Resorts International (MGM)||34,36||13.5||4.8|
|Boyd Gaming Corp. (DWELLING)||52.71||5.6||10.7|
- Light & Wonder Inc.: Light & Wonder is a gaming and entertainment company. It operates the OpenGaming platform and offers content and products for casinos and other gaming service providers. On August 9, the company reported Q2 2022 earnings. Net profit attributable to the company grew more than 29x on the back of modest year-over-year (YOY) sales growth. Net income was impacted by a $4.6 billion pre-tax gain from the sale of the company’s lottery business.
- MGM Resorts International: MGM Resorts International operates casino, hotel and entertainment resorts in the US and Macau through its subsidiaries. The company’s properties include The Mirage Hotel, Bellagio Resort & Casino, Luxor Resort & Casino, Park MGM and Mandalay Bay Resort & Casino, among others. MGM reported Q2 2022 earnings on Aug. 3. Net income attributable to MGM Resorts soared to $1.8 billion, benefiting from a gain related to the deconsolidation of MGM Growth Properties LLC. Sales increased by 44% year-on-year.
- Boyd Gaming Corp.: Boyd Gaming owns and operates 28 gaming facilities in 10 US states. It also operates entertainment, restaurants, shops and recreational facilities on its properties. On September 15, the company announced a quarterly cash dividend of $0.15 per share. The dividend is payable on October 15 to shareholders as of September 30, 2022.
These are the best sports betting stocks by rating and grow a model that ranks companies based on 50/50 weightings of their most recent quarter year-on-year (YOY) percent revenues growth and last quarterly year-on-year earnings per share (EPS) grow. Both sales and profit are decisive factors for the company’s success. Therefore, ranking companies by only one growth metric makes the ranking susceptible to a given quarter’s accounting anomalies (such as changes in tax laws or restructuring costs) that can make one or the other number unrepresentative of the business in general.
|Fastest growing sports betting stocks|
|Price ($)||Market Cap ($B)||EPS growth (%)||Income growth (%)|
|MGM Resorts International (MGM)||34,36||13.5||2,900||44.0|
|Light & Wonder Inc. (LNW)||49.47||4.7||2,960||5.0|
|Bally’s Corp (BALLS)||24.49||1.2||-30.0||106.4|
- MGM Resorts International: See company description above.
- Light & Wonder Inc.: See company description above.
- Bally’s Corp.: Bally’s is a casino-entertainment company focused on casino hotels and racetracks. He also owns Gamesys Group, an online game operator; Bally’s Interactive, a sports betting platform; and Monkey Knife Fight, a fantasy sports site. On August 4, Bally released financial results for Q2 2022. Net profit fell even as sales more than doubled year over year. Strong results from the company’s Casinos & Resorts segment were offset by volatility in the year foreign exchange markets and challenges at Atlantic City’s hotels and casinos.
These are the sports betting stocks that have seen the smallest decline in total return over the past 12 months of the companies we’ve tracked.
|Best performing sports betting promotions|
|Price ($)||Market Cap ($B)||12 month total return (%)|
|Churchill Downs Inc. (CHDN)||203.45||7.7||-10.1|
|Boyd Gaming Corp. (Apartment)||52.71||5.6||-13.8|
|International Game Technology PLC (IGT)||18.18||3.7||– 15.5|
|Roundhill Sports Betting and iGaming ETF (BETZ)||ON||ON||-52.5|
- Churchill Downs, Inc.: Churchill Downs is a provider of pari-mutuel gaming, online horse racing account betting and casino gaming. The company is best known for the premier horse racing event in the US, the Kentucky Derby. Churchill Downs announced on September 15 that it will acquire Ellis Park Racing & Gaming for $79 million in cash. Churchill Downs will also take the opportunity to build Ellis Park near the facility to expand the track.
- Boyd Gaming Corp.: See above for company description.
- International Game Technology PLC.: International Game Technology is a UK-based provider of computer gaming equipment, software and networks for all channels and segments of the gaming industry, including lotteries, sports betting and online casinos.
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