In this digital age, few financial investments are uncertain. We’ve seen from the recent GameStop stock event how a group of dedicated newcomers can shake up the stock market. And the rise of cryptocurrency is creating just as many winners as it is losers. The theme of investment in these past few years seems to be just how volatile it all is. One industry, however, seems to be a sure bet: gambling.
Online gambling and sports betting are now legal in several states where they weren’t before. This has sparked a new interest in gambling and propelled it to a powerful industry. Millions are being made a month, and companies are taking big swings to keep the trend going. What makes this a safe investment is that gambling, and particularly sports betting, have been around for hundreds of years. This is no fad. It’s set to be the most stable industry of 2022.
The United States was once limited by a law called PAPSA, which prohibited sports betting outside of Las Vegas and gambling outside of casinos. Back in 2018, the Supreme Court ended PAPSA. This repeal gave individual states power to make their own sports betting and online gambling laws. States began passing measures throughout 2019 and 2020. By 2021, most states had set dates for sports betting and online gambling to begin in their states. Here in 2022, the majority of US states have legalized sports betting in some form.
How Legal Gambling Affected The Stock Market
The main motivator for states to legalize sports betting and online gambling was money. States that have tribal casinos already share the revenue as part of the current law. So it stands to reason that any new law would keep that same profit-sharing agreement. Now consider the effect of online gambling: it allows anyone with decent internet connection to gamble. You don’t have to travel to a casino or even leave the house. By making it easier to play, online gambling attracts a lot of new customers and casual users. Sports betting apps do the same by opening betting to those who can’t watch the game in the stadium. As more and more people try out online betting, the states get more and more revenue.
And people are trying online betting. The figures from several states show millions of dollars being made a month from gambling. Sports betting in particular brings in a few million on its own, as does online poker. This is true across the nation, from gambling hubs like Las Vegas to states like Pennsylvania. Online gambling PA is just as much a force to be reckoned with even if it lacks the glitz and glamor of city-wide casinos. From the stock market point of view, this increases the value of companies that run casinos and sports betting apps.
Companies are already doubling down by committing to more investment in sports betting. The Buffalo Bills have an exclusive deal with Caesar’s Palace to renovate their stadium and provide betting services. Other states like Pennsylvania are in talks to have betting kiosks installed in their sports stadiums. This is clearly an act of long-term investment. These companies expect sports betting to run for years, if not forever. With such a strong future, the stocks for betting companies are looking very healthy.
Sports Have Always Been A Part Of American Culture
Another strong argument for betting stocks is that sports are one of the most important American pastimes. The country is known for its unique emphasis on college sports, and professional sports are multi-million dollar franchises that are emblematic of local pride. Sports betting is falling under the umbrella of sports business now, putting it in a very strong position. Sports were a way for colonial aristocrats to engage in polite competition, they give people a sense of local identity for their state, and they provide entertainment even in the most difficult time. Betting on sports betting is a smart choice, as sports are a vital part of the US that is here to stay.