The 2020 election saw proposals for sports betting pass in the three state ballots it was on. Louisiana, Maryland and South Dakota represent 4% of the U.S. adult population and will allow sports betting as early as 2021.
Here is a look at the companies that could benefit from the three additional states passing sports betting.
The company has the option to acquire the Hollywood Casino Perryville in Maryland. Penn National also has five casinos in Louisiana.
Penn National saw success with its Barstool Sportsbook in Pennsylvania and is converting its physical sports betting properties to coincide with the Barstool brand name.
MGM Resorts International (NYSE: MGM): The MGM National Harbor is one of six casinos open in Maryland. The physical casino could give MGM’s joint venture BetMGM an inside track to launch online sports betting in the state.
Caesars Entertainment (NASDAQ: CZR): The Horseshoe Casino in downtown Baltimore is owned by Caesars. The casino is located in close proximity to the sports stadiums of the Baltimore Ravens and Baltimore Orioles.
Churchill Downs Inc (NASDAQ: CHDN): The Ocean Downs casino in Maryland is owned by Churchill Downs. The Fair Grounds Race Course in Louisiana is another Churchill Downs property.
The company’s Bet America sports betting brand is available in New Jersey, Pennsylvania and Indiana. The legalization in these two states could help the company diversify from its live horse racing revenue.
Golden Entertainment (NASDAQ: GDEN): There are 10 casinos in the portfolio of Golden Entertainment. Only one of those properties is located outside of Las Vegas.
The Rocky Gap Casino Resort in Maryland could make Golden Entertainment a way to play the legalization of sports betting in the state.
Boyd Gaming (NYSE: BYD): There are four casinos and a racetrack in Louisiana owned by Boyd Gaming.
The company has 10 properties in the Las Vegas market, but also has a strong presence in the South and Midwest with properties in eight additional states.
There is a Golden Nugget casino in Louisiana, giving this new pure play sports betting and online gaming company another state to launch in.
The company has market access to New Jersey, Pennsylvania, Mississippi, Nevada, Louisiana and Michigan, which have all approved sports betting.
DraftKings and FanDuel: The two largest online sports betting companies FanDuel and DraftKings Inc (NASDAQ: DKNG) could also be winners with three additional states approving sports betting.
The companies do not own physical casinos in the three states, but will likely sign deals with physical casinos to gain access to the states.
The two companies contributed $3 million to back the ballot measure in Maryland, which is expected to be a key state in the sports betting market.
FanDuel, owned by Flutter Entertainment (Pink: PDYPY), has an agreement with Boyd Gaming, which could give it access to Louisiana.
The Roundhill Sports Betting and iGaming ETF (NYSE: BETZ) is the only sector-specific sports betting ETF and could be a winner here with the added states.
The ETF has over $128 million in assets. The ETF is up 24% in the last three months.
Benzinga’s Take: The legalization of sports betting in three additional states gets the country closer to 50% of the adult population having access to sports betting.
The three states approved in the 2020 election adds 4% of the adult population.
Tennessee recently launched its efforts on Nov. 1 and Michigan and Virginia are expected to launch by the end of the year. These three states would add 8% of the U.S. adult population to the sports betting market.
In 2018, only 10% of the U.S. adult population lived in states with legalized sports betting. That figure is expected to reach 33% by the end of 2020 and could hit 50% as early as 2021.
Photo credit: Tammy Anthony Baker, via Wikimedia Commons
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