There’s always a bull market somewhere. And right now, the biggest bull market on Wall Street is happening in the sports betting world.
The NFL kicked off the season this past weekend. And it was quite fun. Tom Brady proved he’s still the “GOAT” in Sunday Night Football. Patrick Mahomes’ five-touchdown outing was one of the best opening week performances from a quarterback in recent history. A record four teams – the Colts, Saints, Giants, and Bears – overcame double-digit deficits to win or tie on Sunday.
Some might say it was the NFL’s most entertaining opening weekend ever.
Yet, while most were watching the entertaining action unfold on Sunday, a record number were betting on the outcomes, too.
Top online sportsbooks like DraftKings (DKNG) and Caesars (CZR) use location tracking firm GeoComply to verify where bets are placed. And according to that firm, a whopping 103.1 million Americans tried to place bets on NFL games between Thursday evening and Sunday night. That’s up 72% from last year!
This isn’t a trick play. It’s a sign of the times.
Nationally, sports betting is becoming normalized. Within a few years, it will be as common as it is to watch. Between now and then, the sports betting industry will grow by leaps and bounds. And certain correctly positioned sports betting stocks will soar.
With that system, you could win big in the stock market as the NFL season unfolds over the next few months.
Here’s a deeper look.
The Future of Sports Betting Is Bright
I think it goes without saying that people love sports.
Personally, there are a few days in my life that stand out as the best. The day my daughter was born. The day my wife and I got married. When I graduated from Caltech. The day I scored my first 10X winner with AMD stock. And, of course, the day LeBron James led the Cleveland Cavaliers to a 3-1 comeback in the 2016 NBA Finals against what was considered to be the greatest NBA team of all time – the Golden State Warriors.
Yep. A sports memory makes the cut. I love sports – and I’m not alone.
About 60% of Americans consider themselves sports fans. And universally, the most-watched broadcasts in the history of TV are sporting events.
With that in mind, let me throw out another obvious fact. People like to make money. I don’t have to tell you any stories or cite any stats for you to understand that. It’s just human nature.
Given those two simple realities, it has always baffled me how sports betting has remained niche for so long.
So, what’s the hold-up? The law.
Times Are Changing for Sports Betting
For decades, sports betting has been illegal nearly everywhere outside of Las Vegas.
But on May 14, 2018, that all changed. The Supreme Court of the United States overturned the Professional and Amateur Sports Protection Act (“PASPA”). Since 1992, PASPA had prevented U.S. states – aside from Nevada, Delaware, and Oregon – from engaging in the regulation and taxation of interstate gambling and sports betting.
When the Supreme Court overturned it in 2018, the floodgates were thrown open. Since then, 31 states and Washington, D.C., have legalized sports betting and have live operations today. Another five states have legalized sports betting with live operations coming soon. One state has active legislation in the pipeline. Today, well over 50% of Americans live in a state with legal sports betting.
Tally it all up, and you’re talking 37 states that will likely have legal sports betting by 2023. Remember: Just four years prior, it was illegal pretty much everywhere.
Legislation is notoriously the slowest process in the book. But sports betting legislation has moved forward at breakneck speed. And that’s setting the stage to unleash massive pent-up demand much sooner than most anticipated.
The Boom Has Begun
The sports betting boom isn’t going to start next month or next year. No. It’s already begun.
One week in, and already more than 100 million Americans have bet on an NFL game. Let that sink in. That’s more than one out of every four Americans. And it’s up a whopping 72% from last year.
While most fans are doing it for fun, there’s some serious money to be made in the online sports betting world. For example, on Sunday, one bettor turned $10 into more than $8,000 through a bet on the Chiefs-Cardinals game.
Wow. Just wow.
The more stories like that break into the mainstream media, the more sports watchers will turn into sports bettors.
We expect sports betting volume growth to remain exceptionally robust throughout the NFL season. And it should actually gain momentum as the season progresses. If so, we are very likely to see sports betting stocks soar.
Just look at how much shares of sports betting giant DraftKings have rallied over the past three months. They’re up about 50%!
But DraftKings is just one of dozens of sports betting stocks out there positioned for potentially enormous gains in the coming months as the NFL lights a fire in the sports betting world.
The Final Word
There’s always a bull market somewhere. The key to constantly making money in the stock market is to always find those hidden bulls.
That’s why, just two weeks ago, we launched a brand-new quantitative trading service called Breakout Trader. As the name implies, the service leverages an algorithmic trading strategy to identify high-flying stocks in the midst of big breakouts.
We ride those stocks higher so long as they remain in “breakout mode.” Once they stall, we cash out for big returns and move on to the next breakout stock.
If the sports betting industry stays hot as the NFL season progresses, we strongly suspect our quantitative model will start triggering buys on a few sports betting stocks in major breakout mode.
Therefore, if you’re interested in playing this boom, we propose a simple strategy. Wait for our system to flag a sports betting stock as a breakout trade. Buy that stock, then let it ride ever higher and make you tons of money.
Sounds simple, right? It is. But the key to making it simple is our quantitative system.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.