What is online sports betting and iGaming?

Online sports betting allows you to place wagers on sporting events through mobile apps or websites. iGaming refers to casino-style games available online, including slots, poker, and table games. Both industries are expanding rapidly in the U.S. as more states legalize these activities, creating growth opportunities for the companies in this stock group.

Why is Flutter's acquisition of FanDuel important?

Flutter buying out the remaining stake in FanDuel (valuing it at $31 billion) signals strong confidence in the future of the U.S. online gambling market. This complete ownership gives Flutter more control over one of the largest U.S. sportsbooks, allows for more streamlined operations, and validates the business model for the entire industry, potentially benefiting competitors and suppliers as well.

How do B2B companies like SRAD, IGT, and GAMB fit into this theme?

These companies provide the behind-the-scenes technology, data, and marketing services that power the online betting industry. As operators like FanDuel and DraftKings compete more intensely, they spend more on technology platforms (IGT), data services (SRAD), and customer acquisition (GAMB). This means these B2B companies can benefit from industry growth regardless of which operator wins the most market share.

What does "market consolidation" mean in this context?

Market consolidation refers to the process where larger companies acquire smaller ones, leading to fewer but stronger companies controlling more of the market. In online gambling, this trend (like Flutter taking full ownership of FanDuel) indicates the industry is maturing. Consolidation often leads to more efficient operations, increased investment, and can benefit the entire ecosystem as large players spend heavily to grow their businesses.

What is an ETF and why is BETZ included in this group?

An ETF (Exchange-Traded Fund) is a basket of securities that trades like a single stock. BETZ is an ETF specifically focused on betting and iGaming companies, offering diversified exposure to the entire sector. It's included in this group because it provides a convenient way to invest in the broader industry trend without picking individual winners, allowing you to benefit from the overall growth in online gambling.

15 handpicked stocks

Flutter's FanDuel Full House

This collection features carefully selected stocks across the online gambling ecosystem, handpicked by professional analysts. As Flutter completes its FanDuel acquisition, these companies are positioned to benefit from the booming US sports betting market that's reshaping how Americans engage with sports and entertainment.

Han Tan | Market Analyst

Updated 2 days ago | Published at जुलाई 14