NFL Kickoff Significant Spark for Sports Betting Stocks, Says Macquarie
The 2021 NFL time of year got going Thursday when the Tampa Bay Buccaneers foiled the Dallas Cowboys. But the take the field starts in earnest today, and that could follow a boon for sports betting stocks, according to some analysts.
Football is the most wagered-on sportsman inwards the US, and some gaming equities are already reflecting anticipation of football game season. For example, DraftKings (NASDAQ:DKNG) is higher by 19.7 percent over the past month, spell Caesars Entertainment (NASDAQ:CZR) and Penn National Gaming (NASDAQ:PENN) are upward an average of 12 percent over the same span.
iGaming names have rallied during the shoemaker's last month, and we expect this to proceed as investors become to a greater extent well-to-do with upcoming revenue estimates, presumption fast-growing(a) marketing, superior product, and overall meliorate media/betting integration,” said Macquarie analysts, led by Chad Beynon, in a recent take note to clients.
Macquarie has “outperform” ratings on 9 sports betting and iGaming-related equities, including Caesars, DraftKings, MGM Resorts International (NYSE:MGM), and William Penn National. MGM is half-owner of the surging BetMGM enterprise.
Expect Sir Thomas More M&A Among iGaming, Sports Betting Stocks
One obvious idea emerging in the online gaming infinite is consolidation. Just last-place month, DraftKings announced plans to acquire Golden Nugget Online Gaming (NASDAQ:GNOG) for $1.56 1000000000000 inwards equity, piece William Penn said it’s paying $2 billion in hard currency and equity to win Score Media and Gaming (NASDAQ:SCR).
Add to that, Caesars utmost hebdomad finally proclaimed a emptor — 888 Holdings — for William Hill’s international assets, and there’s practically to a greater extent in the way of iGaming and sports wagering mergers and acquisitions chatter. Those rumors regard everything from divestments of specific units to outright takeovers.
“Tribal operators such as Hard Rock Digital could be another consolidating force. Bottom line, we trust consolidation inwards the manufacture is not over, a whimsy that was echoed by MGM CFO Jonathan Halkyard at a dinner party we of late hosted,” said Beynon and team.
Indeed, MGM could create the biggest slosh in the online gaming industry space. That’s if it opts to relieve oneself another flow at Entain Plc (OTC:GMVHY) and is successful inward getting its partner on the Bet MGM business. Some traders believe the UK is ripe for consolidation activity, and aspect Entain as the to the highest degree likely British people company to live acquired before the terminate of this year.
For Sports Betting Stocks, Football Is Big Deal
While most of the creation of sports betting stocks is comprised of newer companies, there’s no more refuting that football game is the needle removal company for the mathematical group in the US.
“We idea that football game accounts for 35-40 percent of the annual revs, although most of this comes in 4Q (~33 percent of yearbook revs),” said the Macquarie analysts.
One point in time analysts and investors testament sure be monitoring when third- and fourth-quarter earnings reports get going rolling in is how a great deal betting companies are spending on client acquisition — a relevant point, because some of the marquise names in the online wagering space aren’t in time profitable.
On that note, NBC Sports of late said it’s seeing strong demand from sportsbook advertisers for spots on Sunday Night Football. BetMGM, Caesars Entertainment, DraftKings, FanDuel, FOX Bet, PointsBet, and WynnBet are the NFL’s approved sportsbook advertisers this year. Each broadcast tin can contain a upper limit of sextet sportsbook ads.
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