Can You Invest In Sports Betting?

The Quick Answer

Can You Invest In Sports Betting?

Investing in sports betting companies is certainly possible. You can buy stocks and shares in a wide range of public companies from sportsbooks to gaming, EFTs, and more.

If you’ve been in the investment industry for a while, you’re probably aware that there are various types of investments. You can select between low-risk assets such as cash deposits and fixed-term bonds and high-risk investments such as stocks and shares, where there is no assurance that your capital will grow.

Betting on the house – by investing in it – is among the ways to make money in sports betting. It is another type of investment that has grown rapidly due to technological advancements. It is not only entertaining and convenient, but it is also simple to get started with and permits investors to earn both negative and positive returns, making it a perfect deal for risk-takers.

Sports betting is becoming increasingly popular. As per the American Gaming Association, more than half of U.S. states have authorised it, and six more were working on legislation to legalise it as of January 2022. Furthermore, as per Gabelli Securities, the industry is predicted to generate revenues fivefold over the next five years, from USD 2.1 billion in 2021 to USD 10.1 billion in 2028.

Sports betting is becoming more popular, and it could be good for investment, especially as new forms like app-based betting become more prominent. On the other hand, investors have alternative options, such as ETFs, for those who want to bet on a broad-based recovery play. However, you must take into account the dangers to obtain appropriate returns. Here are five methods to become involved in the burgeoning sports betting sector.

Invest In Sportsbook Companies

The most apparent place to look is organisations involved directly in sports betting, such as those who run the applications that allow bettors to place their wagers. If you want to tap into this burgeoning market, this is your best bet. Here are a few of the best players:

DraftKings (DKNG)
Flutter (PDYPY)
Rush Street Interactive (RSI)

Invest In Gaming Companies

Another option to profit from the growing popularity of sports betting is to invest in bigger gaming enterprises such as casinos. Many casinos incorporate sportsbooks and online sportsbooks, but you’d also be investing in the casino and hotel business in many cases, so you wouldn’t gain a lot of sports betting exposure. The following are some of the most prominent players in this field:

Caesars Entertainment (CZR)
Penn National Gaming (PENN)
MGM Resorts International (MGM)
Las Vegas Sands (LVS)

Invest In Gaming ETFs

A gaming ETF is a good choice if you want comprehensive exposure to gaming, including online gaming, sports betting, and traditional physical sites. You can obtain wide exposure to the sector without picking a winner with an ETF, and you can play the reopening trade since more people travel and visit casinos.

An ETF could be a smart choice for someone who merely wishes to bet on the sector’s overall growth. Two funds with a focus on the subject are listed below:

Roundhill Sports Betting and iGaming ETF (BETZ)
VanEck Vectors Gaming ETF (BJK)

Invest In Racetracks

If you’re interested in horse racing, a nice publicly-traded choice is also a legend in the industry known as Churchill Downs (CHDN).

Invest In Tech Providers

Apart from investing directly in gaming companies, you might also invest in companies that provide technology that underpins gaming. It’s like investing in “picks and shovels” enterprises in the gold rush. Here’s a couple of well-known names:

GAN (GAN)
Kambi Group (KMBIF)

Is Sports Betting A Game Of Chance Or A Game Of Skill?

Sports betting is a combination of skill and luck. Some people may discover that they have struck it rich in a few games. Luck, on the other hand, usually runs out in the end. Skill is what will enable you to win more frequently.

Is It Legal To Gamble On Stocks?

Stock market investing is not a form of gambling. The stock market equated to gambling is a fallacy that isn’t true. Both include risk and aim to maximise return, but investing is not the same as gambling.

Is It Possible To Make A Fortune Betting On Sports?

Unless you take sports betting as a full-time career and become one of the best bettors in the world, sports betting with no gambling knowledge is improbable to make you rich., although you could start by building up a sports betting side hustle.

But, before you become too enthusiastic, remember that only a few sports bettors are consistently profitable without expert knowledge often shared by paid, reputable tipster services.

Sports Betting Stocks: What Are The Top Ones?

Sports Betting Stocks With The Best Value

Boyd Gaming Corp. (BYD)
Gambling.com Group Ltd. (GAMB)
Penn National Gaming Inc. (PENN)

Sports Betting Stocks Having Fastest Growth

Boyd Gaming Corp. (BYD)
GAN Ltd. (GAN)
Evolution AB (EVVTY)

Sports Betting Stocks Having Most Momentum

International Game Technology PLC (IGT)
MGM Resorts International (MGM)
Evolution AB (EVVTY)

Is It A Good Idea To Invest In DraftKings?

In the industry, DraftKings has an advantageous position. It has a well-known brand, a rising customer base, a high percentage of insider ownership, dozens of prospective U.S. states to expand into, and a strong balance sheet with USD 2.8 billion in cash and minor debt on the books.

Is It Possible That Sports Betting is Rigged?

Sports betting is not rigged, but it is stacked against you because of the vig. Sports betting organisations collect a commission on lost bets, known as the vig, to generate money. If sports betting benefits states, it means that those who gamble lose money quite often.

What Is Passive Investing?

It is an investment technique that aims to optimise returns by reducing the amount of money spent on purchasing and selling. Index investing is a popular passive investment technique in which investors buy a representative benchmark, such as the S&P 500 index and hold it for a lengthy period.

What Is An ETF, Or Exchange-Traded Funds?

An ETF (exchange-traded fund) is a pooled investment vehicle that works similarly to a mutual fund. ETFs often track a certain index, commodity, sector, or other assets, but unlike mutual funds, they can be bought and sold on a stock exchange just like any other stock. An ETF can be set up to track anything from a single commodity’s price to a big and diverse group of securities. ETFs can even be built to follow certain investment strategies.

How to invest in sports betting stocks?

There are several ways to invest in sports betting stocks, depending on your investment preferences and location. Here are a few options:

Buy individual sports betting stocks – One option is to buy individual stocks of companies that are involved in the sports betting industry. Some of the best sports betting stocks include companies like DraftKings, Flutter Entertainment, and Penn National Gaming. To buy individual sports betting stocks, you’ll need to open a brokerage account with a reputable online broker, such as E-Trade, TD Ameritrade, or Robinhood, and then purchase the stocks you’re interested in.

Invest in a sports betting index fund – Another option is to invest in a sports betting index fund, such as the Roundhill Sports Betting & iGaming ETF (BETZ). This fund is designed to provide investors with exposure to the sports betting and iGaming industries, and invests in companies that are involved in various aspects of these industries. To invest in a sports betting index fund, you’ll need to open a brokerage account with a firm that offers access to ETFs, and then purchase shares of the fund.

Consider investing in international sports betting stocks – Depending on your location, you may also be able to invest in international sports betting stocks. For example, companies like Betsson AB and Kindred Group are based in Europe and offer exposure to the sports betting industry in that region. To invest in international sports betting stocks, you’ll need to open a brokerage account that offers access to international markets, and then purchase the stocks you’re interested in.

When investing in sports betting stocks, it’s important to do your research and consult with a financial advisor, as these stocks can be volatile and carry a higher degree of risk than other types of investments. By investing wisely and diversifying your portfolio, you can potentially capitalise on the growth potential of the sports betting industry and achieve your investment goals.

Summary

It’s certainly possible to invest in sports betting, there’s lots of public companies you can invest your money with.
If you own some stocks or shares in gambling companies please do feel free to share your experience, feedback or advice.


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