Sports betting is a very popular pastime that adds more thrill to the games that are being watched. This is especially true during the Super Bowl, which the American Gaming Association (AGA) predicts will see over 50 million Americans collectively bet $16 billion. Stocks that stand to benefit include:
More importantly, the Super Bowl is crucial for sportsbook companies when it comes to acquiring new customers. Indeed, last year’s event saw many promotions from the above-mentioned companies. As a result, the event might not be as profitable as many might think, especially if the AGA’s predictions are too optimistic. In addition, it’s worth mentioning that the estimate includes illegal wagers as well, which likely still make up the bulk of bets.
Nevertheless, Wall Street remains optimistic about sportsbook stocks, as all have “Buy” consensus ratings. Analysts expect the most out of PENN stock, which has 23.67% upside potential based on a $41.27 price target. Conversely, DKNG stock has the least support with a $17.75 price target, which implies only 5.62% upside potential.
