Slam Dunk Investments: 3 Sports Betting Stocks to Profit from March Madness Mania 



  • As you place a bet on your favorite team, consider putting a few bucks into these sports betting stocks.  
  • DraftKings (DKNG): The pure-play sports betting company is growing revenue at an impressive clip. 
  • MGM International (MGM): After getting off to a slow start, the company’s BetMGM platform has quickly become a profitable segment. 
  • Walt Disney (DIS): ESPN Bet may be a key to how the company plans to revive its sports and entertainment network.  
sports betting stocks - Slam Dunk Investments: 3 Sports Betting Stocks to Profit from March Madness Mania 

Source: KAMONRAT /

You don’t have to be a sports fan to own sports betting stocks. You just have to do the math. This year, an estimated $2.72 billion is expected to be spent on the NCAA Men’s and Women’s March Madness basketball tournaments. According to the American Gaming Association (AGA) that’s more than twice what is bet on the Super Bowl.  

The event, which plays out over several weeks, may seem odd to non-sports fans. However, it’s a ritual for sports fans that marks the beginning of Spring as much as seeing the azaleas at Augusta National.  

The amount being bet on events like March Madness correlates with the increasing approval of online and mobile sports betting throughout the U.S. And you have to consider that online sports betting is not available in every state. When states such as California, Texas and Georgia approve sports betting, you can understand why it’s not a gamble to hold a position in one or more of these sports betting stocks.  

DraftKings (DKNG) 

Person holding smartphone with logo of US sports betting company DraftKings Inc. (DKNG) on screen in front of website. Focus on phone display. Unmodified photo.
Source: T. Schneider /

Of the three sports betting stocks on this list, DraftKings (NASDAQ:DKNG) is the only pure-play online betting company. DraftKings grew year-over-year revenue by 63% to $3.66 billion. In February 2024, the company updated its full-year guidance to a range of $4.65 billion to $4.9 billion from its previous guidance of $4.5 billion to $4.8 billion. That’s an increase of approximately 30%. 

What makes the revenue growth particularly impressive is that it is coming at a time when consumers are feeling the effects of inflation. It is possible some consumers are gambling more to try to generate extra income. But there’s no doubt that an improving economy will benefit a company like DraftKings.  

As of Mar. 11, DraftKings includes North Carolina in the states that it covers. That ties in nicely with the beginning of the NCAA March Madness tournament, which is one of the most widely bet sporting events in the U.S. every year.   

The one thing for investors to watch for is how soon it can arrive at consistent profitability. At its current rate of growth, and with its recent acquisition of the lottery app, Jackpocket, the company will be able to increase its addressable audience.  

MGM International (MGM) 

A photo of the MGM logo on the MGM casino building.
Source: Michael Neil Thomas /

MGM International (NYSE:MGM) is best known for its portfolio of casino, hotel and entertainment resorts, many of which have in-person sportsbooks. However, the company also has BetMGM, its online sportsbook. BetMGM had the misfortune of launching in early 2020, and we all know what happened next.  

But the company has bounced back nicely and is now active in 29 markets putting it among the leaders in active markets in U.S. sports betting and iGaming. For the full year 2023, the company reported that BetMGM delivered net revenue from operations on the high end of its $1.8 billion to $2 billion guidance. It also delivered positive EBITDA in the second half of the year.   

MGM is not a pure play among sports betting stocks. But BetMGM is growing despite being just one of many verticals that MGM can tap. As for the parent company, analysts are bullish on MGM stock. They give MGM stock a consensus price target of $55.24. That’s 24% higher than its closing price on Mar. 22. And 12 out of 20 analysts give the stock a Strong Buy rating.  

Walt Disney (DIS) 

A person wearing a suit and tie holds a handful of dollar bills in the middle of a brightly lit sports stadium; representative of sports betting
Source: sutadimages / Shutterstock

Walt Disney (NYSE:DIS) is showing signs of recapturing its magic. DIS stock is up 28% in 2024. The company is starting to refire on all cylinders and recently reinstated its dividend.  

Right now, that’s not a sports betting story, but it may be soon. There has been a lot of speculation about what Disney’s plans are for the ESPN television network. However, investors may have an answer. Disney, in partnership with PENN Entertainment (NASDAQ:PENN), launched its own online sports betting platform, ESPN Bet in November 2023.  

The platform is in its early stages. You’ll have to wait a few quarters to see if the ESPN name can help the app capture market share. However, owning shares of DIS stock also gives you ownership of a broader entertainment and media conglomerate.

On the date of publication, Chris Markoch did not have (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 Publishing Guidelines. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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