The sports betting industry is benefitting from the relaxation of gambling laws and the expanding digital landscape. Also, investors pouring money into digital gambling are speeding up the build-out and marketing of their platforms.
Let’s understand a few other factors impacting the sports betting industry.
Gambling increases sports spectators, which in turn attracts more individuals interested in gambling and boosts the prospects for the sports betting industry. This growing interest from both spectators and potential gamblers draws the attention of investors toward gambling stocks.
Gambling’s Legal Climate Spells Growth
Over the past decade, the legal climate surrounding sports gambling has played a pivotal role in the industry’s expansion. It kicked off with the easing of interstate gambling laws in 2018. The easing was the result of a Supreme Court decision to strike down the federal ban on sports betting.
This then sets the playing field for each state to regulate and legalize the industry within their borders. The Court’s landmark ruling paved the way for states to recognize the higher tax revenue generated by legalizing gambling. This led to a surge in sports betting activity across the country, with many states quickly moving to establish a legal framework for the industry.
Accessibility to Gambling Through Digitization
The growth of digitization has been the driver for the sports betting industry, enabling rapid growth and increasing accessibility. Bettors can now easily place wagers on platforms with minimal effort, leading to an increase in the number of bets placed and subsequently boosting revenue.
The digital revolution has also facilitated the growth of betting markets and introduced a broader array of bet types. For example, a few years ago, wagering on women’s basketball was rare due to insufficient activity for betting. Today, not only can one bet on previously untapped sports but also on specific outcomes within the game, such as individual plays or athletes’ total points. This increases engagement with viewers because they have bets on outcomes within the game.
All of this has become an opportunity for investors in the booming industry and its various platforms.
Digital Gambling Stocks
As the sports betting industry continues to grow, investors are taking notice of the opportunities in the digital gambling space. Several publicly traded companies have emerged as key players in this rapidly expanding market. This offers investors a chance to capitalize on the industry’s growth.
Some of the major players in the digital gambling space include Draft Kings (NASDAQ:DKNG), Penn National Gaming (NASDAQ:PENN), MGM Resorts (NYSE:MGM), and Caesars Entertainment (NYSE:CZR).
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Investor Takeaway
The sports betting industry is experiencing a period of unprecedented growth, fueled by changes in the legal climate, the impact of digitization, and increased investor interest. As the industry continues to evolve and expand, investors have a unique opportunity to capitalize on the growth of digital gambling firms and the broader sports betting market.
