Sportsbook

Gambling stocks hope to get an NFL boost

Thursday 25 de August 2022 / 07:31

⏱ 1 min read

(New York).- Some would argue that Wall Street is just one big casino. And for investors wagering on gambling stocks, it’s been a big losing bet so far this year. Shares of sports betting giant DraftKings are down about 35% in 2022. UK-based Flutter Entertainment, which owns DraftKings rival FanDuel, has fallen 20%.

Gambling stocks hope to get an NFL boost

Most of the major casino companies are also struggling. MGM and Wynn Resorts are each down around 25%. Penn Entertainment, which owns a 36% stake in Barstool Sports and announced plans earlier this month to buy the rest of the company, has plunged almost 35%. Caesars Entertainment has lost half its value this year. But some investment pros still prefer the brick and mortar casinos, most of which have sportsbooks on site. The hope is that US tourism will continue to pick up— to Las Vegas in particular — now that more people are vaccinated and Covid-19 fears have started to wane.

"I really like Caesars. Heading into football season, there should be a boost for casinos and sports betting," said Lamar Villere, portfolio manager with Villere & Co., which owns Caesars stock. Caesars operates several casinos in Las Vegas as well as in Reno, Nevada.

Villere also said that the renovation of a Caesars' property in New Orleans could help the company. And he noted that while parts of China are seeing a new surge in Covid cases, Caesars can benefit from the fact that it does not have a presence in the international gaming mecca of Macao. MGM, Wynn and Las Vegas Sands (LVS) do have casinos there.

"Caesars is a pure domestic play," Villere said. "You don't have to worry about what's happening with China and Macao."

By Paul R. La Monica

Categoría:Sportsbook

Tags: Sin tags

País: United States