Yesterday, New York sports bettors got a sign of hope after Gov. Andrew Cuomo said he was on board with mobile sports betting. New York has the fourth-largest population in the U.S. and could become one of the top sports betting states in the country thanks to mobile betting.
With the announcement, multiple sports betting stocks got a boost from the news. DraftKings closed at $48.94, although there was a slight reversal in the overall market yesterday. Penn National, another sports betting stock and has a partnership with Barstool Sports, closed at $89.21 on Wednesday.
Many more sports betting companies now public could see the same results in 2021. New York will most likely expand sports betting, and states like Michigan and Virginia are planning to launch in January. Investing in gaming companies now will be a huge boost to anyone’s portfolio.
Sports Betting Boost
Yesterday was a crazy day for the U.S., and sports betting stocks began the day with a huge boost with New York news. Unfortunately, after Trump supporters stormed the U.S. Capitol building, the overall stock market dived in the afternoon, reacting to the events.
At first, betting operators began the day higher like DraftKings, Penn National, BetMGM, and Bally’s. The stocks could see a reversal on Thursday and Friday as the market begins to correct itself after yesterday afternoon’s debacle in Washington D.C.
Overall, sports betting stocks have been soaring over the last six months, especially after the November Election. With sports returning last August, the industry has made a huge rebound and added more states into the mix. On Election Day, Maryland, Louisiana, and North Dakota all passed sports betting, which has boosted stocks in recent months.
Now, 2021 should continue to see that trend, especially if New York officially goes live with online betting. Michigan and Virginia will also help once the state goes live as well. Texas is looking at passing sports betting in 2021, but it will first need to expand the casino industry before it moves forward with sports.
Gaming companies like BetMGM, Bally’s, and Golden Nugget will see a boost if the second-largest U.S. state also expands its gaming industry.
The Northeast Betting Industry
Outside of New Jersey and Pennsylvania, the betting industry in the northeast is nowhere near its maturity. New York, New Hampshire, and Rhode Island all have legal sports betting, with New York the only one of the three with no mobile betting. However, the Empire State will most likely expand in 2021.
Connecticut, Massachusetts, Maine, and New Hampshire all have a chance at passing sports betting this year. Although some states have better chances than others, it will boost the northeastern states with raises revenue.
It will also boost the sports betting industry, especially if New York and Massachusetts can pass their betting bills given how passionate the states are with their sports.
Sports betting stocks should see a steady increase over the next few years as sports betting expands across the northeast and the U.S. DraftKings, Penn National, and others are just the tip of the iceberg.