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Sports Betting is Geared Up for Another Record Year in 2023

Baystreet - Tue Oct 3, 2023
The United States Supreme Court moved to strike down a federal ban on single-game sports betting back in the spring of 2018. This blew open the door for individual states to begin an aggressive push to table their own sports betting legislation. As it stands in the early fall of 2023, there are now over 35 U.S. states that have moved to legalize single-game sports betting.

Unsurprisingly, the major North American sports have all pounced on the opportunity presented by this development. The National Football League (NFL) attracts the largest pool of bettors in both the United States and Canada. Indeed, a preseason survey by the American Gaming Association showed that 73.5 million American adults, which is just over a quarter of the total U.S. population, planned to bet on the NFL during the 2023 season.

That number includes adults who plan to make informal wagers among friends. For example, a group of friends who may pool together prize money in a fantasy football league. Still, 49.7 million, equal to nearly 20% of the total population, planned to place bets online, at a casino, or through a bookie. The Super Bowl between Kansas City and Philadelphia in February 2023 registered 100 million sports betting transactions.

Fortunately, there are many stocks that investors can target that offer exposure to the U.S. sports betting market. DraftKings (NASDAQ:DKNG) first rose to prominence as a daily fantasy sports content, but has quickly transitioned into one of the largest sports books in the U.S. The stock was trading at $11/share in the beginning of January 2023 and hit a 52-week high of $34.49 during the summer season. While it has retreated slightly from those levels, it has still nearly tripled at the time of this writing.

Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.