MGM Is the Best Bet on U.S. Sports Betting – InvestorPlace

Casino stocks like MGM Resorts (NYSE:MGM) have been hammered in 2020 as the global pandemic triggered casino shutdowns and travel restrictions. MGM stock is down 34.8% in 2020 along with other major Las Vegas and Macau casino operators.

Interior of a sports gambling facility in Las Vegas.

Source: NYCStock / Shutterstock.com

However, online and sports gambling stocks Penn National Gaming (NASDAQ:PENN) and DraftKings (NASDAQ:DKNG) have been on fire. In the past six months, Penn shares are up 488% and DraftKings is up 292% on high hopes for U.S. sports gambling.

Despite the lackluster market performance, MGM has a big stake in sports gambing as well. But unlike Penn and DraftKings, MGM stock is also a Vegas and Macau rebound play that investors can buy at a discount.

MGM Stock And Sports Betting

In 2018, the U.S. Supreme Court lifted a federal ban on sports betting, essentially opening up a $150 billion industry. As states have legalized sports gambling one at a time, the growth numbers have been very impressive.

In New Jersey, the first state to legalize sports betting, August revenue was up 111.9% compared to July. July revenue was up 90.9% compared to June. These are month-over-month numbers, not year-over year.

“In the U.S., MGM’s 21 casinos are positioned to benefit from an estimated $6.2 billion sports betting market by 2024, generating about 4% of the company’s total revenue that year,”
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