Best Sports Betting Stocks • Charts Updated Daily • Benzinga

Though an industry whose heritage extends back to the dawn of civilization, wagering on sports carried significant controversies due to their association with organized crime. Further, the advent of the internet and mobile connectivity technologies allowed illegal bookies to run sports betting operations that skirted taxation laws. That’s why it’s important to know about the best sports betting stocks when investing.

However, thanks to a pivotal court case in New Jersey in May 2018, any state that wants to legalize sports betting can do so. As a result, several states decided to allow such activities, representing a massive boon for sports betting stocks. Below are five of the most compelling ideas.

Similar to the North American cannabis industry, the best sports betting stocks represented untapped potential. According to the Las Vegas Convention and Visitors Authority, between 2014 through 2019, more than 40 million tourists descended upon “Sin City,” racking up massive revenue throughout the area’s gaming and convention business. In other words, if wagering on sports were legal, governing jurisdictions could enjoy an incredible (and taxable) revenue stream.

Unfortunately, prior to U.S. legislation favorable to sports betting stocks, criminal elements used the platform to launder money. In 2014, a Reuters report detailed how nefarious organizations attempted to fix certain games. As a result, only lawbreakers benefitted from their racket. In the meantime, several state budgets became stretched to the limit while critical public services went unaddressed. However, the U.S. Supreme Court in 2018 struck down a federal ban on sports betting, allowing individual states to make their decisions.

On principle, legalization makes sense because, as a now taxable enterprise, sports betting operations will draw more eyes and regulatory guidance. Theoretically, this should dissuade funny business due to the increased chances of getting caught. Better yet, the legalized gaming industry will likely provide job growth — an area where the country still needs to recover. For instance, the national employment level is still down roughly 5% from right before the pandemic.

Just as importantly, advanced technologies helped navigate the best sports betting stocks through a difficult time last year. When the COVID-19 pandemic initially disrupted the global economy, questions lingered over the viability of athletic competition. But thanks to mitigation protocols and mobile gaming apps stepping up to the plate, the sports gambling market became one of the biggest winners in the equities space.

However, this sentiment lift doesn’t just revolve around physical products but also services. Therefore, it’s possible that investor demand for sports betting stocks will increase in the months ahead. If so, you should prepare yourself to profit from this narrative by investigating both individual stocks and brokerages that cater to this market segment.

Here is what to look for in sports betting stocks to potentially increase your profits.

Like any lucrative market, competition is fierce among these stocks. This is why it’s critical for the underlying businesses to carry attractive brands at their disposal. While consumer confidence improved substantially from the low point in April 2020, it’s still down below pre-pandemic norms. This implies that companies have to fight for a dwindled consumer base. Owning strong brands makes this job much easier.

When the COVID-19 crisis first touched down in the U.S., major metropolitan areas including Las Vegas looked like ghost towns. Logically, this headwind impaired brick-and-mortar retail sportsbooks, which had to close down for several months. On the other hand, mobile operators kept the lights on. Given the uncertainties of how this pandemic will ultimately pan out, you should consider sports betting stocks tied to diversified businesses.

One of the surprises that catch new investors of speculative trades off guard is that low volume can make you a loser even if you’re a winner on paper. For instance, wide bid-ask spreads suggest that you may have difficulty finding a buyer for your stock when you’re ready to sell. Therefore, make sure that your stocks have a relatively robust trading activity before you dive in.

Sports betting has long been a part of the American fabric, though not always in a positive light. However, a groundbreaking legal ruling gave sports betting stocks much needed legitimacy. It also brings more regulatory oversight to the industry, which should help clean out corrupt activities.

Moving toward the horizon, the sports gambling segment provides investors with an intriguing setup. Primarily, consumers are hungry for normalcy and sports betting provides a form of retail therapy. Moreover, excitement brews over the return of full-sized crowds, which augurs well for the best stocks in this space.