“US online gambling looks to us like 1 of 2021’s better bets“– Paul Ebeling
The potential market for internet sports betting could be worth up to $23-B 2X the annual gaming revenue of Nevada casinos.
Online betting shops have faced some complex issues in the United States. A 2018 Supreme Court ruling allowed states to legalize sports bets. But the federal Wire Act still complicates some ventures by limiting gambling across state lines.
Just a handful of states have taken a chance on an online sports book, with much of the action in New Jersey, Pennsylvania and Delaware. They are enjoying a windfall.
New Jersey’s sports wagers totaled $4.1-B through October 2020, with virtual gambling accounting for more than 90% of October’s bets.
Like other home entertainment, digital sports betting had a captive audience when The China Virus struck and is on track to rise by about 20% in Y 2020, Fitch Ratings estimated in November. Plus there is room for for further growth. New habits may stick, and legal options could displace illegal ones this year.
More states are likely to enter the game. With typical tax rates on internet gambling in the mid-teens or higher and growth accelerating, it is an opportunity to Top up their treasuries.
As a nation of football, basketball and baseball fans find legal sports betting more and more accessible.
Massachusetts is debating the inclusion of online sports betting in its economic development bill now, as are Ohio and New York.
Dublin-based betting giant Flutter Entertainment (OTC:PDYPY) just committed $4.2-B to increase its stake in US-based sports betting site FanDuel, hailing easing American rules as “the single biggest market opportunity” today.
A fellow investor, media group Fox (NASDAQ:FOX), secured the option to raise its own stake.
Casino operators are overcoming fears of cannibalizing their in-person business too.
MGM Resorts International (NYSE:MGM) and Caesars Entertainment (NASDAQ:CZR) are building up online, and Wynn Resorts (NASDAQ:WYNN) started offering online sports betting in Q-3. Shareholder are likely to benefit handsomely.
Have a healthy Happy New Year, Keep the Faith!