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.
A MyWallSt subscription gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team post daily insights, subscriber-only podcasts and the headlines that move the market. Get your free trial now!
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.