Sports betting stocks are in for another big year.
If you’re a growth investor, you need to add them to your portfolio.
Sports betting in the U.S. is exploding.
Ten new states launched legal sports betting in 2021, bringing the nationwide total to 30.
This led to a surge in the total amount wagered in the U.S.
Although 2021 numbers have not come out yet, analysts expect the total for the year to approach $50 billion.
That’s more than double 2020’s numbers.
This is the extreme growth I love to see.
But there’s even better news.
The market’s about to move even higher thanks to several catalysts…
A Huge Catalyst for Sports Betting Growth
One catalyst is imminent.
New York’s mobile sports betting launch is expected by the end of January, just in time for the Super Bowl.
Nine sportsbooks are now licensed to operate in the state. These include Caesars Entertainment Inc. (Nasdaq: CZR) and DraftKings Inc. (Nasdaq: DKNG).
Although New York legalized in-person betting in 2019, mobile sports betting will really move the needle.
As you can see in the chart below, the handle (amount wagered) for mobile sports betting dwarfs in-person.
(Source: Gaming Today.)
Based on New Jersey’s example, I expect New York to be among the top states for sports betting after the mobile launch. This will help bump up income for companies operating in New York. (This bump higher would start in the first quarter of 2022.)
Companies will begin releasing results for the quarter in May. I expect many will surpass Wall Street’s expectations.
This should drive sports betting stocks higher.
Another Catalyst for Sports Betting: Politics
Another catalyst that will drive sports betting up is this year’s election.
California, another huge market, already has sports betting legalization on the ballot.
Right now, the initiative is for in-person betting.
But there is a proposal for mobile betting as well. I expect it will be added to the ballot and will likely pass.
In a survey conducted by David Binder Research in September 2021, 62% of Californians supported legalizing mobile sports betting.
California has the biggest population and economy in the U.S. by far, so legalization would be a huge win for the sports betting industry.
A Long-Term Trade With Major Upside
I see sports betting stocks as a long-term trade with major upside.
After all, the sports betting market is huge.
And most sports betting is done illegally.
According to the U.N. Office on Drugs and Crime, illegal sports bets total up to $1.7 trillion each year globally.
This means that legal sports betting is only a fraction of the total market opportunity right now.
Governments want to change this. They want tax revenue from the industry.
As more states offer legal sports betting, I expect sports betting companies to become cash cows.
To get exposure to the industry now, you can buy the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ).
This exchange-traded fund contains a basket of 46 global stocks involved in the sports betting market.
Like I said before, if you’re a growth investor, you need to have sports betting stocks in your portfolio.
But the industry is just one of several that we expect to explode over the next few years.
To access all of our team’s favorite growth opportunities, check out Strategic Fortunes.
Ian King has his eye on growth, and our portfolio reflects it. That’s why we have everything from solar power companies to social media giants within our recommended buys.
To find out how to access our complete portfolio, click here.
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