Tag: PENN

Are You Going to Bet on Sports Betting Stocks?

by Fred Fuld III

Can you believe it? Now Disney (DIS) is getting into sports betting through its ESPN division and an agreement with Penn Entertainment (PENN).

Sports betting is legal in 37 states and Washington, D.C. as of August 2023. The first state to legalize sports betting after the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018 was New Jersey. Since then, there has been a rapid expansion of sports betting in the United States.

The states that have legalized sports betting have different laws and regulations governing the industry. Some states allow only in-person betting, while others allow both in-person and online betting. Some states have a monopoly on sports betting, while others allow multiple operators to offer sports betting services.

The growth of sports betting in the United States has been driven by a number of factors, including the popularity of fantasy sports, the increasing availability of mobile devices, and the legalization of sports betting in more states. The industry is expected to continue to grow in the coming years, as more states legalize sports betting and more people become interested in betting on sports.

Here is a list of the states that have legalized sports betting as of August 2023:

  • Alabama
  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Mississippi
  • Missouri
  • Montana
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

The future of sports betting in the United States is bright. The industry is expected to continue to grow in the coming years, as more states legalize sports betting and more people become interested in betting on sports.

DraftKings (DKNG): DraftKings is a leading online sportsbook and daily fantasy sports (DFS) company. It operates in 19 states and Washington, D.C., and has a market capitalization of $13.8 billion. DraftKings offers a variety of betting options, including sports betting, DFS, and iGaming. It also has a media division that produces content for its own platforms and for third-party partners.

DraftKings was founded in 2012 by Jason Robins, Matt Kalish, and Paul Liberman. The company quickly became one of the leading DFS companies in the world. In 2018, DraftKings launched its sportsbook in New Jersey, becoming one of the first companies to offer legal sports betting in the United States after the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA).

DraftKings has grown rapidly in recent years. In 2022, the company generated $1.3 billion in revenue and $463 million in net income. DraftKings is expected to continue to grow in the coming years, as more states legalize sports betting and more people become interested in betting on sports.

DraftKings is a publicly traded company on the NASDAQ stock exchange (ticker symbol: DKNG). The company’s stock price has been volatile in recent years, but it is currently trading at a market capitalization of $13.8 billion.

DraftKings is a well-positioned company to benefit from the growth of the sports betting industry in the United States. The company has a strong brand, a proven track record, and a diversified product offering. DraftKings is also well-capitalized and has a strong management team.

The company is currently generating negative earnings, however, annual sales growth for the last five years, is 63.5%, and quarterly revenue growth year-over year is 84.5%.

Penn National Gaming (PENN): Penn National Gaming is a casino and gaming company that owns and operates casinos, racetracks, and sportsbooks in 19 states. It has a market capitalization of $3.87 billion. Penn National Gaming is one of the largest casino operators in the United States and is also a major player in the sports betting industry.

Penn National Gaming entered the sports betting market in 2018, when it acquired theScore, a Canadian sports media company. TheScore operates a sportsbook in Canada and has a partnership with Penn National Gaming to offer sports betting in the United States.

In 2020, Penn National Gaming acquired Barstool Sports, a popular sports media and entertainment company. Barstool Sports has a large and engaged following of sports fans, which Penn National Gaming is hoping to leverage to grow its sports betting business.

Penn National Gaming is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong portfolio of casinos and racetracks, which can be used to attract sports betting customers. Penn National Gaming also has a strong brand and a proven track record in the gaming industry.

Here are some of the key things to know about Penn National Gaming’s sports betting business:

  • The company operates sportsbooks in 13 states and the District of Columbia.
  • It has partnered with Barstool Sports to offer sports betting in several states.
  • It is also a major investor in theScore, a Canadian sports media company that operates a sportsbook in Canada.
  • Penn National Gaming is expected to continue to grow its sports betting business in the coming years, as more states legalize sports betting and more people become interested in betting on sports.

The stock trades at a great six times trailing earnings and 12.5 times forward earnings. Quarterly earnings growth year-over-year was an incredible 987.9%, on a revenue increase of 7%. It has a superior price to earnings growth [PEG] ratio of 0.27, an excellent price to sales [PS] ratio of 0.59, and sells at 92% of book value.

Flutter Entertainment (PDYPY): Flutter Entertainment is a British gambling company that operates in over 20 countries. It is one of the largest online sports betting companies in the world and owns the Paddy Power Betfair brand.

Flutter Entertainment entered the United States sports betting market in 2018, when it acquired FanDuel, a leading online sportsbook. FanDuel has since become one of the most popular sports betting apps in the United States.

In 2020, Flutter Entertainment acquired TVG, a pari-mutuel online betting network, which is active in 35 states. TVG has a strong presence in the horse racing market, which is a growing segment of the sports betting industry.

Flutter Entertainment is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong portfolio of brands, a proven track record, and a global reach. Flutter Entertainment is also well-capitalized and has a strong management team.

Here are some of the key things to know about Flutter Entertainment’s sports betting business:

  • The company operates sportsbooks in 18 states and the District of Columbia.
  • It owns the FanDuel and TVG brands, which are two of the most popular sports betting apps in the United States.
  • It is also a major investor in Adjarabet, a Georgian sports betting company that operates in several countries in Eastern Europe.

Flutter has a market cap of $34.3 billion, and is currently generating negative earnings. Revenues for the latest reported year were up over 27%.

Churchill Downs (CHDN): Churchill Downs is a horse racing company that owns and operates the Kentucky Derby and several other racetracks. It also has a sports betting app in Indiana and Illinois.

Churchill Downs entered the sports betting market in 2019, when it launched its sportsbook in Indiana. The company has since expanded its sports betting operations to Illinois and is expected to launch sportsbooks in several other states in the coming years.

Churchill Downs is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong brand, a proven track record in the horse racing industry, and a large customer base. Churchill Downs is also well-capitalized and has a strong management team.

Here are some of the key things to know about Churchill Downs’ sports betting business:

  • The company operates sportsbooks in Indiana and Illinois.
  • It is expected to launch sportsbooks in several other states in the coming years.
  • It has a partnership with DraftKings to offer sports betting in several states.

This $9 billion market cap stock has a trailing P/E ratio of 26 and a forward P/E of 16.7. Earnings per share growth this year was a strong 81.2% and quarterly sales growth was up 31.9%. The company even pays a small dividend, providing a yield of 0.29%.

MGM Resorts International (MGM): MGM Resorts International is a casino and resort company that owns and operates casinos, hotels, and entertainment venues in 17 countries. It also has a sports betting app in Nevada, New Jersey, and several other states.

MGM Resorts International entered the sports betting market in 2018, when it launched its sportsbook in Nevada. The company has since expanded its sports betting operations to New Jersey and several other states.

MGM Resorts International is well-positioned to benefit from the growth of the sports betting industry in the United States. The company has a strong portfolio of casinos and resorts, which can be used to attract sports betting customers. MGM Resorts International also has a strong brand and a proven track record in the gaming industry.

Here are some of the key things to know about MGM Resorts International’s sports betting business:

  • The company operates sportsbooks in Nevada, New Jersey, and several other states.
  • It has a partnership with BetMGM, a joint venture with Entain PLC, to offer sports betting in several states.
  • It is also a major investor in BetMGM, which is one of the leading sports betting companies in the United States.

This $16.9 billion company trades at 44 times trailing earnings and 16 times forward earnings. Earnings per share growth this year jumped.44.6%. The very small dividend yield is 0.02%.

These stocks are all poised to benefit from the growth of the sports betting industry in the United States. As more states legalize sports betting, these companies will be well-positioned to capture a share of the market.

Disclosure: Author didn’t own any of the above at the time the article was written.

The Triple Crown Horse Races and Some Racing-Related Stocks

by Nkem Iregbulem

Horseracing fans have now seen or heard about Thoroughbred horse Justify’s most recent win at the Belmont Stakes race this past Saturday, June 9th. Just a couple weeks before, Justify won the Kentucky Derby on May 5th and the Preakness Stakes race on May 19th. With this third exciting win, Justify was crowned the 2018 Triple Crown winner – only the second Triple Crown winner in the last 40 years.

Even with Justify’s strong performance, Secretariat, the Triple Crown winner in 1973, still holds the time records in all three Triple Crown races. These three races are the Kentucky Derby, Preakness Stakes, and Belmont Stakes. They all occur annually, and the Triple Crown is awarded to the 3-year-old Thoroughbred horse that wins all three races in a given year. It is widely considered the highest honor that a racehorse can receive.

Before the Triple Crown became an official award, the term “triple crown” was first used by TheNew York Timesin 1923 and was then regularly used by the paper’s racing columnist at the time by 1930. However, by 1937, other writers and publications adopted the term, and the term became more established.

The Belmont Stakes is the oldest and longest of the three, and the Kentucky Derby is the youngest. Started in 1867, the Belmont Stakes race is 1.5 miles long and occurs at Belmont Park in Elmont, New York on the first or second Saturday in June. The winner of this race is covered with a blanket made of hundreds of carnations and receives the August Belmont Trophy. Started in 1873, the Preakness Stakes race is 1.1875 miles long and occurs at the Pimlico Race Course in Baltimore, Maryland on the third Saturday of May.The winner of this race is covered with a blanket of black-eyed Susan flowers, so the race is otherwise known as “The Run for Black-Eyed Susans.” The winning horse also receives the Woodlawn Vase.

Begun in 1875, the Kentucky Derby race is 1.25 miles long and occurs at the Churchill Downs racetrack in Louisville, Kentucky on the first Saturday of May. The winner of this race receives the Kentucky Derby Trophy and a blanket of roses, giving the race the nickname “The Run For the Roses.” There have been 13 Triple Crown winners crowned since the creation of the award in 1950 with the first winner being Sir Barton.

If you’re looking to get financially involved in the horse racing industry, you can choose from a variety of racing-related companies to invest in: Churchill Downs Inc. (CHDN), Dover Downs Gaming and Entertainment (DDE), and Penn National Gambling Inc. (PENN). The CHDN and PENN stocks are both listed on the NASDAQ exchange, but the DDE stock is traded on the New York Stock Exchange.

Founded in 1928 and therefore the oldest of the three companies, Churchill Downs is a racing, gaming, and online entertainment company based in Louisville, Kentucky. It hosts the Kentucky Derby at its Churchill Downs racetrack. Its other racetracks include the Arlington International Race Course in Arlington Heights, the Fair Grounds Race Course in New Orleans, and the Calder Race Course in Miami Gardens. The company also operates some casinos and hotels around the country. Most of the company’s revenue comes from within the United States.

Churchill Downs has a market cap of $4.07 billion and pays a small dividend yield of 0.51%. With a price-to-sales ratio of 5.21, its stock is considered pretty overpriced. It trades at 28.06 times trailing earnings and at 26.67 times forward earnings. The stock also has a price-to-book ratio of 12.03. Its revenue has been increasing each fiscal year since 2015 as the company enjoys a 3-year revenue growth rate of 2.81%.

Dover Downs Gaming & Entertainment Inc. is a gaming and entertainment company based in Delaware and founded in 1969. It operates its own casino, hotel, and racetrack called Dover Downs Casino, Dover Downs Hotel and Conference Center, and Dover Downs Raceway respectively. Its hotel offers conference, banquet, concert hall, and salon facilities. Its racetrack features live and simulcast horse races. However, most of the company’s revenue comes from its gaming operations.Its casino offers table games, slot machine games, poker, bars, and restaurants.

The company has a small market cap of $56.58 million, so its stock is speculative. It has a very favorable price-to-sales ratio of 0.34 and trades at 8.55 times forward earnings. It has a low price-to-book ratio of 0.53. With a negative 5-year revenue growth rate of -4.77%, the company has faced decreasing revenue values each fiscal year since 2011.

Penn National Gaming is a gaming and racing company based in Pennsylvania and founded in 1972. It stands as the second largest operator of regional casinos in the United States. In addition, it was one of the very first companies to adopt a business model, called “racino,” that combined casino operations and racetrack operations. The company has many properties scattered across the United States and Canada with three operating segments known as the Southwest, Northeast, and South/West segments.

The company has a market cap of $2.97 billion. The company’s stock has an excellent price-to-sales ratio of 0.96 and a price-to-book ratio of 9.29. It trades at 5.10 times trailing earnings and at 19.16 times forward earnings. Revenue has been increasing each fiscal year since 2014, contributing to its great 5-year revenue growth rate of 15.15%

So, if you are interested in investing in the horse racing industry, you might consider investing in the racing-related companies that you find attractive. Hopefully they turn out to be winners.

 

Disclosure: Author didn’t own any of the above at the time the article was written.

How to Invest in the Kentucky Derby & Horse Racing

The Kentucky Derby will take place at the end of this week, on Saturday, May 6, in Louisville, Kentucky. This is one of the most watched horse races in the United States. The Kentucky Derby is the initial race of the Triple Crown of Thoroughbred Racing. The second race is the Preakness Stakes and the third is the Belmont Stakes.

If you want to make money from horse races, you can bet on a race horse, or you can invest in a horse race track related stock.

The host of the Kentucky Derby is Churchill Downs (CHDN), the holding company of the Churchill Downs Racetrack founded in 1875. Other operations it has includes Arlington Park, the Calder Race Course, the Fair Grounds Race Course, and the Trackside Off-Track-Betting Facilities. The stock trades at 23 times forward earnings. The company pays a small dividend of 0.78%.

Another racetrack stock is Dover Downs Gaming and Entertainment (DDE), which owns Dover Downs Raceway, a harness racing track with pari-mutuel wagering. The stock sports a very favorable forward price to earnings ratio of 6.3.

Penn National Gaming Inc. (PENN) owns many racetracks and off-track wagering operations in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia, and Ontario. The stock has a forward PE of 23.4. The yield is a substantial 3.32%.

Hope you place your bet on the right stock, and your investment comes in first place.

Disclosure: Author did not own any of the above at the time the article was written.