With football season starting up, there has been a huge increase in sports betting in the last week. From last Thursday-Sunday, this betting was up an incredible 72% year-over-year!
This translates to over 100 million logins to various sports betting services in the U.S., like DraftKings (DKNG) or Caesars (CZR). That’s about a third of the entire country.
Even though a record number of teams overcame double-digit deficits to win and Tom Brady was on Sunday Night Football, it was no coincidence that betting was up big this week. In the past, it was looked down on as a “sleazy” kind of activity. Until recently, it was only legal in betting cities like Las Vegas or Atlantic City.
However, sports watching and betting are becoming intertwined. The societal mindset surrounding it is shifting — from a creepy casino activity to a social activity to enjoy with friends online and in apps.
Thirty-seven states have legalized some form of sports betting, and the states that don’t allow it are smaller and less populated. In other words, the vast majority of Americans have access to betting; about 80% to 85% of the population, actually.
We think there will be a large trend in sports betting over the next five to 10 years — to the point that as many people who watch will be betting on them.
This is also showing signs of short-term growth. This betting surge is a fundamental catalyst. And over the next couple of months, sports betting stocks will climb higher.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.