From our morning Report:
Of course, since we like to “Be the House – NOT the Gambler“, I prefer to look at Sports Betting Stocks, who make money no matter who wins or loses the game. Unfortunately, the best sports betting stock is Flutter Entertainment (PDYPY) but they are an ADR and don’t have options.
In the first half of this year, PDYPY’s revenues rose 32% and profits rose 29% (so any gains in revenues are pretty much all profits at this point) and, at $86.73 they are a great long-term hold. Flutter is behind FanDuel and they have 36% of the US on-line market but their main income is from Europe and Australia.
BYD is our favorite casino stock and they own 5% of PDYPY, which is $1.5Bn worth of the stock and you can buy BYD for $65.26, which is $6.5Bn yet they make $650M a year, including $150M. This is the first year BYD will be able to sell their stake in Flutter – $1.5Bn would be plenty of money to launch their own Sports Book and they already are with B Connected Sports in Nevada, Indiana, and Iowa in the first half of 2023, offering online sports betting to its customers in those states. BYD also opened retail sportsbooks at its properties in Pennsylvania, Mississippi, and Kansas in partnership with FanDuel.
Interesting, right? Let’s see what Claude thinks:
👺 Here is my analysis of Boyd Gaming (BYD) as an investment opportunity, with a focus on their sports betting prospects aligned with the NFL and basketball seasons:
– BYD looks well-positioned to capitalize on the growth of sports betting, especially with the start of the NFL and basketball seasons. Their partnership with FanDuel gives them access to a leading sports betting platform and mobile app. FanDuel currently operates sportsbooks at all of BYD’s properties.
