- Jefferies is suggesting that stock buyers should pay closer attention to the sports betting market.
- Stocks for companies involved with sports betting have increased in value in recent months.
- The U.S. sports betting market is predicted to be worth $5 billion by 2023.
NEW YORK – Investing banking company, Jefferies, suggested on Tuesday that stock buyers should consider buying stocks related to sports betting.
When new markets appear on the scene, there are opportunities to profit off it. Jefferies is suggesting that people interested in buying stocks from sports betting companies should do so now rather than later.
A New And Emerging Market
Legal sports betting as we currently know it has only been around since mid-2018. When the federal law known as PASPA was ultimately repealed, it allowed for gaming companies to open sportsbooks in the country. This means that new companies are entering the U.S. market and established gaming companies such as FanDuel are expanding their offerings.
Buying stocks are bets in of themselves. The market could shift up or down depending on what the company announces. So, in most cases, it is safer to invest in established companies.
A surprisingly affordable company to invest in is William Hill. Stocks for William Hill are currently priced at around $10.30. The stock price for William Hill has decreased in the last five years, but now it seems to be trending up. This is likely due to the company getting into new U.S. sports betting markets.
One new stock to look out for in the upcoming months is DraftKings. DraftKings stocks are going public in 2020 in a three-way deal with Diamond Eagle Acquisition and SBTech.
DraftKings has a strong presence in the New Jersey sports betting market. On top of that, DraftKings sportsbooks are expanding all over the country. The potential for a large financial gain is strong with the new DraftKings stocks.
There are many more gaming companies that have increased their stock value since sports betting was legalized. More companies are appearing as well. Jefferies says that people interested in making investments should do so soon. The reason for that is the company expects U.S. sports betting to become a $5 billion industry by 2023.
Daniel is a writer that enjoys writing to inform readers. When Daniel was writing for The Borgen Project, he liked informing the world about victories in global poverty issues. Daniel is also an avid horse racing fan who has been going to the track with his father for over a decade betting the ponies. When he is not writing about sports betting or at the track, Daniel loves playing video games and watching sports in his spare time.