The next Super Bowl is coming up and many people are excited. They have every reason to be. Even non-football fans have a star-studded halftime show to look forward to as well as some fascinating commercials. In fact, this year, even crypto afficionados will have reason to watch the big game. Rumors of a Dogecoin (DOGE-USD) commercial recently sent its prices soaring. Adding to the mix are non-fungible tokens (NFTs) from Coinbase (NASDASQ:COIN) and Rolling Stone. It isn’t often that we see fans of music, art and digital assets brought together by one sporting event.
With so much exciting non-football hype surrounding this year’s Super Bowl, it’s almost easy to forget about the football component. Nevertheless, football fans around the U.S. and beyond are already placing bets on the game. With this in mind, investors are likely wondering which sports betting stocks to buy in preparation.
Some stocks will certainly see a bump from their Super Bowl advertising campaigns. But we also shouldn’t forget the platforms that allow users to place bets with just one click. This year in particular, the stakes are high. One prediction from PlayUSA forecasts that legal betting on the event could top $1 billion. It has been estimated that 31 million people will be placing bets.
So, let’s take a look at the top sports betting stocks to buy for this year’s Super Bowl.
- DraftKings (NASDAQ:DKNG)
- Flutter Entertainment (OTCMKTS:PDYPY)
- MGM Resorts (NYSE:MGM)
- Penn National Gaming (NASDAQ:PENN)
- Rush Street Interactive (NYSE:RSI)
Sports Betting Stocks to Buy: DraftKings (DKNG)
Is anyone surprised that DraftKings is the first name on this list? No one should be. The company redefined the ways in which Americans bet on sports, making it trendy and bringing it to new audiences. The field has expanded in recent years, but this company remains the undisputed leader. As InvestorPlace contributor Tezcan Gecgil notes, DKNG has experienced “rapid top line growth, capitalizing on the readiness of state legislatures to legalize mobile gaming activities.”
However, it’s also true that DKNG stock struggled in 2021 and hasn’t looked like a winner so far in 2022. Just as many pandemic-era winners have fallen since the world began shifting back to normal, so has DraftKings. The company’s long-term future remains somewhat uncertain, but the Super Bowl can be counted on to give the stock a shot in the arm.
DraftKings’ sportsbook is legal in 15 states, including large markets like New York and New Jersey. Other companies in the space, such as Churchill Downs (NASDAQ:CHDN), can only offer their services in a few states. This reach gives DKNG an important edge over other sports betting stocks to buy.
Flutter Entertainment (PDYPY)
As one of DraftKings’ primary competitors, PDYPY stock certainly belongs on this list of sports betting stocks to buy. You may not know the name Flutter Entertainment, but you definitely know its subsidiary FanDuel. The company blends fantasy sports, betting and entertainment in a way that’s similar to DKNG.
Flutter is probably better known in its native Ireland, where it dominates the sports betting space. In December 2021, the company also raised its stake in FanDuel to 95%. At the time, FanDuel’s enterprise value was an estimated $11.2 billion.
For a European company looking to enter the U.S. sports betting market, that type of deal makes a lot of sense. FanDuel’s platform is legal in many of the same states as DraftKings. However, FanDuel does not have an app that can be used in the U.K., unlike DKNG. While both have platforms in Canada, one report suggests that DraftKings remains the more responsive of the two companies. That said, FanDuel has its own dedicated fans who will also be using it during the Super Bowl. What’s more, Flutter’s dynamic portfolio spanning different sports and countries makes it a compelling play year-round. PDYPY stock is absolutely worth watching.
Sports Betting Stocks to Buy: MGM Resorts (MGM)
One of the best-known names in the gambling world, MGM’s casino empire extends far beyond the Las Vegas Strip. With that territory comes a focus on sports betting. As the Super Bowl draws near, the company has been running TV commercials for BetMGM, letting the world know it wants viewers to place their bets on its platform. As InvestorPlace contributor Muslim Farooque notes, “a recent update suggests that BetMGM has consistently hit its market share targets of 20% to 25% in the U.S. online gaming sector.”
As of November 2021, this company reported that it was a market leader in digital gaming with a 30% market share. Currently, MGM is live in 19 sports betting markets as well, demonstrating a reach that rivals the competition. The same update stated that BetMGM’s current market share was “in line with with its long-term target” of 20% to 25% in U.S. sports betting and iGaming.
MGM also has some notable international reach. For example, the company has a stake in prominent U.K.-based sports betting and gambling platform Entain (OTCMKTS:GMVHY). All told, BetMGM certainly makes MGM stock a worthwhile bet when it comes to Super Bowl investment plays.
Penn National Gaming (PENN)
Another name known primarily for its casino holdings, Penn National boasts a diverse portfolio. Specifically, the company’s casino holdings span the U.S. and beyond, primarily under the name Hollywood Casino. In recent years, though, PENN has been increasingly focused on sports betting. In 2020, the company’s acquisition of a stake in popular media venue Barstool Sports helped it make a splash in one of the gambling world’s fastest-growing markets. Today, users can place bets on sporting events both large and small with the help of the Barstool Sportsbook.
The Barstool Sports brand has a loyal following that will certainly mobilize during the Super Bowl. That said, founder David Portnoy has attracted plenty of controversy of late with allegations of sexual misconduct. For investors, however, there’s mostly good news when it comes to PENN stock. The company recently reported overall strong earnings in Q4 as well as board authorization of a $750 million share repurchase program. Penn National’s positive long-term outlook has been touted by Tipranks, but the influx it will see from Super Bowl betting should make it an attractive short-term play, too.
Sports Betting Stocks to Buy: Rush Street Interactive (RSI)
Last up on this list is Rush Street Interactive. Recently, InvestorPlace contributor Thomas Niel described RSI stock as “a more under-the-radar sports betting stock.” If its currently low share price is any indication, RSI still is. The stock trades at a lower level than any other name on this list. While that may not entice some investors, however, it doesn’t make it a bad buy.
Rush Street is known primarily for its digital gaming venture, but it was fairly late to the sports betting party. This year began on a high note for the company, though, when it gained regulatory approval to launch a digital and mobile sportsbook in New York. That victory comes at a good time, enabling Rush Street to cash in on Super Bowl traction. Rush Street also boasts former NFL star Mark Schlereth as a brand ambassador.
BetRivers is the company’s digital casino and sports betting venue. While it doesn’t quite have the reach of DraftKings or FanDuel, it does offer betting on the same events. Fans can also enjoy live coverage and event streaming. All told, any investors considering a bullish play on the Super Bowl shouldn’t rule out RSI stock. Its low price relative to peers and growing market share make it worth considering among sports betting stocks.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
