Mind-Blowing Industry Growth

Do you know the one industry that increased 75% year-over-year in 2022 (and I’m not talking about AI)?  While this industry isn’t new, it’s becoming easier to saturate the market due to technological advancements and now states around the country all want a piece of the action.  But this isn’t just limited to the United States.  This industry was valued at $36,564 million in 2022 and is expected to reach $44,586 million in 2023.  I’ll bet you will want to get in on the action.

I’m talking about the online betting market that has been dominated by companies like DraftKings and FanDuel.  The sports television network, ESPN, announced an agreement with PENN Entertainment (PENN) to launch ESPN BET, a branded sportsbook for fans in the U.S.

For the time being, Disney (DIS) owns 80% of ESPN and stands to gain from the gold rush that is happening in the legalized online gambling world.  

Time will tell if we should be worried about the technological advances that have made wagering easy.  It takes 15 mins or less to hand over your bank account information to an online sportsbook that makes 1-tap wagering far too easy.  These companies have made it incredibly easy to reload funds and make confusing bets seem fun and easy, and show you the dream of making you rich. 

Anecdotally, I have friends who used to hate watching sports, and know very little about the games or the players but have handed over thousands (yes, thousands) of dollars to sports betting apps because they were lured in by the ease and fun of how the betting games were presented. 

While there are plenty of ways to get involved in this trend, the Roundhill Sports Betting & iGaming ETF (BETZ) offers investors exposure to sports betting and iGaming industries.  

Why not pick one or two stocks in the industry? The industry is still in its infancy stage and is likely to expand, consolidate, adapt, and grow. There will be clear winners and losers, but right now I’d rather get wide exposure to the industry and keep stalking the companies that are likely to outperform in the long run. For now, I’m ok with an ETF.

With the American Football season only weeks away, it may be time for you to look at adding some exposure to one of the hottest and fastest-growing industries this year.

BETZ does have options, but not enough open interest at the moment. It would only be good for those who are ok owning stock in their portfolio.

If you’re more interested in trading options, look at industry leaders like DraftKings (DKNG) and PENN Entertainment (PENN) to offer more liquid options.

If you have any questions, comments, or anything we can help with, reach us at any time.
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Jeff Wood
Editor, Filthy Rich Dirt Poor
Coach, Options Testing Lab

Any trade or trade idea discussed is for educational purposes only.  They will not be tracked as an official trade recommendation.