With the 2022 NFL season kicking off, keep an eye on DraftKings (DKNG).
That’s because “This football season is slated to see a record number of Americans placing bets on their favorite teams, according to the American Gaming Association. Nearly 47 million people said they plan to bet on the NFL this year, representing 18% of American adults. Of those, 23 million plan to bet online, up 18% from 2021,” as noted by Barron’s.
Helping, Roth Capital Partners recently upgraded the DKNG stock to a buy, with analysts pointing to the company’s app growth as a path to profitability. Even Citi analysts raised their price target to $24 from $20, with a buy rating.
Since September began, shares of DKNG ran from $15 to $19.38 so far.
From here, we’d like to see the stock challenge $25 a share, longer-term.
However, it’s not just DKNG that may benefit from the 2022 season.
Shares of Flutter Entertainment (PDYPF), which owns FanDuel ran from about $113 to $122 since the start of the season. MGM Resorts (MGM) jumped from about $32 to $34.80 so far. Wynn Resorts (WYNN) just jumped from $57.50 to $65.48. Penn National Gaming (PENN) is up slightly from about $29 to $31.15 as well.
Even sports betting ETFs could get in on the action.
Look at the Roundhill Sports Betting & iGaming ETF (BETZ).
With an expense ratio of 0.75%, the ETF offers exposure to sports betting and iGaming. It also offers exposure to a potential $37 billion U.S. sports betting total addressable market by 2033. Some of the fund’s top holdings include DraftKings, Flutter Entertainment, Genius Sports Ltd., Penn Entertainment, and Rush Street Interactive to name a few.
Or, look at the VanEck Gaming ETF (BJK).
With an expense ratio of 0.62%, the ETF offers exposure to companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment. Some of its top holdings include DraftKings Inc., Entain PLC, Las Vegas Sands, Galaxy Entertainment, and MGM Resorts to name a few.