Special Report: Odds Point Higher for Sports Betting

Sports betting is emerging as one of the hottest new mega trends. 

While it is only a few years old, it’s already a $20B industry by revenue and is growing at double digits.

Right now, the charts suggest we want even more action in these stocks.

And this has nothing to do with the old Vegas casino names… 95% of sports betting now happens digitally. There’s a whole new basket of growth companies making waves in this subsector of the “degenerate economy.” 

The total addressable market is massive, the industry is in its infancy, and investors are choosing the early leaders. 

It isn't just a couple of stocks, either. We’re seeing an expansion in participation across the space with many of the names pressing on fresh highs, while others resolve multi-year bases. 

Our friends over at Roundhill run a pretty neat ETF for the betting and iGaming industry. Here’s $BETZ, recapturing its VWAP anchored to the all-time high: 

This ETF captures the theme, but also waters it down with exposure to legacy casino operators like Caesars and Wynn— a group that’s lagged the market forever. 

The real juice is in the pure-play online gambling names, so we built our own custom index to focus on these leaders. Here it is, threatening to break out to new all-time highs:

Notice how it’s already broken out relative to the traditional casino stocks, confirming this is the right pond to fish in.

Now let’s talk about the ones we’re putting our money on…

Our first setup today is the $41B DraftKings $DKNG: 

DraftKings is putting the finishing touches on a textbook cup and handle pattern as it continues to climb the right-hand side of this multi-year base.

I’ve been in this one for years in the long-term account, but recently added it to the short-term account as the stock is resolving a coil to fresh 6-month highs.

I like jumping this breakout and using 50 as confirmation. We’re targeting 75.

We have a double-sized position on DKNG in Breakout Multiplier via September calls, so I’m long for both a trade and investment. You can currently get those calls for less than what we paid.

Next up is Flutter, parent company of FanDuel, which enjoys a duopoly with DKNG, together controlling about 70% of wagers in the US.

Unlike DKNG, Flutter has already reclaimed its highs from the prior cycle.

As long as we’re above 300, we're targeting 490.

While DraftKings and FanDuel get all the attention and run all the advertisements, I think the top opportunities in this space lie with smaller platforms and picks and shovels plays, as is often the case.

They’ve already been the leaders, and I think it continues. Let’s talk about those now.

If you're not a member of ASC Premium and want access to our top trade ideas in the Sports Betting industry, click here and join us risk-free.