5 ways to invest in sports betting stocks and funds – Bankrate.com

One of the best ways to make money on sports betting is to bet on the house by investing in it!

Sports betting is rapidly growing in popularity. More than half of U.S. states have legalized it, and 6 more were actively working on legislation to legalize it as of January 2022, according to the American Gaming Association. Plus, the industry is expected to grow revenues five-fold in the coming years from $2.1 billion in 2021 to $10.1 billion in 2028, according to Gabelli Securities.

The Super Bowl, scheduled for February 13, could set gambling records if last years game is any indication. More than 23 million Americans were expected to bet $4.3 billion on the 2021 game, according to the AGA, and more states have legalized it since then.

Here are five ways you can get in the game to invest in the hot sports betting market.

The most obvious place to check out are the companies directly involved in sports betting, such as those running the apps enabling bettors to plunk down their money. If youre looking to get exposure to this growing market, this is probably your best bet. Here are some top players:

You may find other players in sports betting, though they may have other larger businesses.

For example, the Walt Disney Company has investigated sports betting, thinking how it might be able to leverage its own ESPN brand. However, if the company decided to go that route, sports betting would be a small part of a larger diversified company. Privately owned media company Yahoo also offers bettors a Yahoo-branded sportsbook powered by BetMGM, leveraging its position in fantasy sports. Still, you wouldnt likely get the same bang for your buck from these types of companies compared to the available pure play opportunities in betting.

Another way to play the rise of sports betting is to invest in larger gaming companies, known more informally as casinos. Many casinos run sportsbooks and online sportsbooks, but youd also be investing in the gambling and hotel operations, so you wouldnt get highly focused exposure to sports betting. Some of the top players here include:

If youre looking for broad exposure to gaming, including sports gambling, online gaming and traditional physical locations, you could opt for a gaming ETF. With an ETF you could get broad exposure to the sector without having to pick a winner, and you could play the reopening trade as more people travel and go to casinos. Here are two funds that focus on the area:

An ETF could be a good option for someone who simply wants to wager on the growth of the sector as a whole.

If youre into horse racing, you have a good publicly traded option, and its an icon in the industry:

Besides investing in the gaming companies directly, you could also invest in the companies that provide the technology behind the gaming. Its like investing in the picks and shovels companies in the gold rush. Here are some popular names:

If investors are looking to invest in individual stocks or even in the gaming industry as a whole, its important to pay attention to the risks. Here a couple that are especially relevant to investing in sports betting right now:

As with any investment, youll want to look carefully at a range of other factors before plunging into the market.

Sports betting is growing in popularity, and it could be an attractive place to invest, especially as new forms such as app-based betting expand. Investors have other avenues to play the space, though, and even those who want to make a broad-based recovery play on betting have ETFs.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

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5 ways to invest in sports betting stocks and funds - Bankrate.com