Is Online Sports Betting The Next Big Play For Investors?

Despite an underwhelming viewership performance on Super Bowl weekend, the online gambling industry has never looked stronger.

I’m sure you’ve heard me talk about the Roundhill Sports Betting & iGaming ETF (NYSEARCA: BETZ) more than once! No, I am not some gambling addict and I am not equating investing to gambling.

Quite the opposite actually, as it looks like BETZ could be a killer play for investors following an impressive Super Bowl weekend performance. 

What’s the deal with BETZ?

BETZ is on a roll right now for such a relatively young industry in the U.S., with its price up 96% since its launch last June — an impressive return for any ETF. In that time, it has accrued more than $350 million in total assets under management and has seen inflows of $146 million so far in 2021. You might even recognize some of its top holdings:

  • Kindred Group (5.2% of portfolio)
  • Pointsbet Holdings (4.8% of portfolio)
  • PENN National Gaming (4.5% of portfolio)
  • DraftKings (4.4% of portfolio)
  • Score Media and Gaming (4.2% of portfolio) 

If investors need a bull case they can relate to with online betting, then perhaps the Super Bowl can be that bridge. The final results are still rolling in, but on a state-by-state basis, it looks like between $450 million and $500 million worth of bets were placed on the big game. That’s already smashing last year’s total of $300 million and marks a record total amount bet on any single event in the U.S.

What’s more, the traditionally most-watched event on U.S. TV, actually suffered its lowest ratings since 2007 with 96.4 million viewers. Imagine if the interest had been higher all-around how much the betting figures would have been worth? 

With more and more states legalizing gambling, online betting has proven its growth potential even during a pandemic. 

Read more about online betting stocks here.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here

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