Why BofA Sees $2B Possibility In Canadian Sporting activities Betting

While BofA Securities sees DraftKings Inc. (NASDAQ: DKNG) and FanDuel as the first captains of the athletics betting area, analyst Shaun Kelley said both of those Penn Nationwide Gaming Inc. (NASDAQ: PENN) and MGM Resorts Intercontinental (NYSE: MGM) “are formidable opponents” that carry on to improve marketplace share in the states where on line gambling is authorized.

BofA’s Sporting activities Betting Takeaways: MGM, through its BetMGM platform, at the moment holds the No. 1 spot for online sporting activities betting in Colorado and Tennessee, but is also gaining sector share in New Jersey and Pennsylvania, Kelley said in a Thursday note.

In the same way, Penn National, as a result of its BarStool Sportsbook app, took a 24% marketplace share in Michigan when on the web sports betting went dwell on Jan. 22, next only to DraftKings in the Wolverine State, the analyst stated.

For the states that have documented development in on the web athletics betting, Kelley stated January observed 10% advancement thirty day period-above-thirty day period and 111% development yr-about-12 months.

January’s jump was very likely due to the Super Bowl, the analyst claimed, incorporating that he expects volatility in the sector in the course of the yr based on the cyclical character of the sports activities calendar.

BofA On iGaming: Kelley’s expectations in the iGaming subsector have been much exceeded, he stated, with states reporting above 200% advancement above the past 12 months.

Only a single-third of the states that enable on the net sporting activities betting also allow for iGaming, the analyst stated, incorporating that the possible current market for iGaming is about 70% larger sized than that of on the web sporting activities betting.

BofA sees DraftKings, BetMGM and FanDuel as continuing to guide in iGaming this 12 months by getting market place share in the room, he stated.

BofA On Marketplace Growth: Even though there will be some lulls in the sector when main sports teams aren’t in season, Kelley claimed this is very likely to be offset by additional states and Canada legalizing on-line sports betting and iGaming.

In the U.S., the analyst explained the states to enjoy are New York, Massachusetts, Arizona, Ohio, Connecticut, Georgia, Kansas, Louisiana and Maryland, all of which are at different sites in the legalization system.

Canada took the next move this 7 days in legalizing athletics betting nationally when its Residence of Commons voted 303-15 in favor of the invoice Wednesday.

With Canada’s current market believed to be a $2-billion sector at maturity, DraftKings, Penn Nationwide and Skillz Inc. (NYSE: SKLZ) are ready to enter the on-line betting taking part in area in the country, Kelley claimed.

Similarly, Canadian on the net athletics betting providers this sort of as FansUnite Amusement Inc. (OTC: FUNFF), Rating Media and Gaming Inc. (PINK: TSCRD) and Bragg Gaming Group Inc. (OTC: BRGGF) are all looking to get a head start in the Canadian market place even though also expanding in the U.S., in accordance to BofA.

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