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Why Sports Betting Companies Are Going Digital

Sports betting is a hot topic right now in markets. Many states have passed legislation since the federal government raised its prohibition on sports gambling in May 2018, which was motivated mostly by the prospect of a new line of tax revenue. In the recent election, sports betting was an issue on a handful of state ballots. Many casino, racetrack and sports book companies are making strides to take their businesses digital ⬇️

🎰 Today’s biggest Ripper, Bally’s, operates casinos and racetrack properties in six states. $BALY is partnering with one of America’s biggest media companies, Sinclair Broadcast Group, to accelerate their nationwide growth. $SBGI plans to work with $BALY to localize and expand sports betting across the nation. It’s just one example of established media companies making attempts to enter this market. $BALY is up 30.8% on the news of the partnership.

📺 However, some more ‘digital-first players’ might be the real benefactors from sports betting. For instance, 82% of sports betting in New Jersey was conducted completely online in 2019. FuboTV, which made our Rippers list last week, might be the ideological competitor to owned media. The over-the-top sports streaming platform helps people watch live sports from anywhere, and $FUBO plans to attack the sports betting market with their robust subscription service.

🏈 Two other companies which have made their way onto the Rippers list in the past are also largely benefactors of the ‘digital-first emphasis.’ DraftKings is one such recognizable, completely digital sports betting brand. $DKNG has gone on a 350% run this year. Meanwhile, Penn National Gaming has gone on a 167% run this year. This was boosted in part by an acquisition of a 36% stake in Barstool Sports. $PENN plans to use Barstool’s media presence as a way of pushing sports betting to a more mainstream audience. Both companies now have attention from numerous analysts, who are suggesting that there could be considerable upside.

Noah Weidner

Noah Weidner is a restless self-starter with a vehement interest in all things that make the world go around: culture, politics, economics and all the people in between. He writes the Bullish Rippers series and covers other interesting trends and happenings at Bullish.

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