Thoughts on Sports Betting Stocks as the NFL Season Begins

The NFL season has begun and fans of the game aren't the only ones getting excited. The sports betting industry has experienced significant growth in recent years, with billions of dollars being wagered on sporting events. 아시안커넥트 안전 도메인

According to the American Gaming Association, combined online and land-based sports betting revenue reached a whopping $2.3 billion in the second quarter of 2023. This is primarily because the laws have become increasingly relaxed in US states. This number represents a 56.6% year-over-year increase and represents an industry record for the second quarter. 28% of the adult population. 아시안커넥트 안전 주소 추천

According to a report by ESPN, until the U.S. Supreme Court intervened in 2018, "just over 1% of the U.S. population had access to legal sports betting." “Five years later, more than half of the United States will live in jurisdictions where gambling is legal, and that percentage continues to grow.” BTI sports 무료쿠폰

  These surprisingly high numbers are driving investors to invest in sports betting. We are focusing on companies that are driving growth. Contribute to and profit from sub-sectors of the gaming industry. In this context, MGM Resorts International MGM -1.2% and his PENN Entertainment Inc. are among the companies with the longest track record in the sports betting market. Also, for investors looking for broader exposure to the gaming space through an ETF, there's VanEck Gaming

. DraftKings and FanDuel are also notable players in this space, but the more established companies in the market offer longer analytical track records and provide more context and information. Identify investment opportunities in this sector. The impact of the aforementioned 2018 Supreme Court ruling has become clear, and gaming stocks have recorded impressive returns since 2019. But compared to the S&P 500, which returned about 77% over the same period with more modest losses, gaming stocks look less appealing despite strong gaming revenue growth. As NFL betting grows in size and popularity, examining the seasonality of returns can help identify potential investment opportunities in the gaming space. An analysis of 2019 returns shows significant seasonality. There is a strong correlation between positive average returns during the NFL season and negative average returns during the league's offseason. During the NFL offseason from 2019 to 2022, MGM and PENN combined for double-digit average losses over that period, while the S&P 500 gained an average of 2.9%. However, we can see that BJK, MGM, and PENN significantly outperformed the S&P 500 on average for the 2019-2022 NFL season. The trend is clear and obvious. With this in mind, it is important to note that correlation is not the same as causation. Despite the above trends, it is unclear whether increased wagering during football season directly impacts the outperformance of gaming stocks. Based on the data, diversification with BJK ETFs likely offers the highest probability of success with the lowest downside risk.

As online sports betting continues to grow, it's not just team pride that's at risk heading into the new NFL season. The sports betting boom has brought excitement to the gambling space and presents potential opportunities for investors. The gaming industry, especially the sports betting sector, is definitely riding a wave of growth. As the new NFL season begins, momentum in this sector could present potential seasonal investment opportunities. However, as with any investment, it is important to thoroughly research and understand the risks involved before diving in. Whether you're an avid soccer fan or a seasoned investor, you'll definitely want to keep an eye on the emerging sports betting sector as the season progresses.