The surge in popularity of sports betting has captivated both Americans and Wall Street. With legal sports betting now widespread across the US, the industry is projected to double in size by 2030. This growth is fueled by expanding user bases, innovative microbetting options, and the strategic use of AI. Analysts predict that certain stocks within the sports betting sector will emerge as major winners.
America might be developing a new favorite pastime: gambling. Sports betting has seen a meteoric rise in popularity in recent years. This Super Bowl Sunday, Americans are anticipated to wager a collective $1.39 billion in legal betting markets, according to the American Gaming Association. As consumers eagerly open their wallets to place bets, Wall Street is pouring substantial investments into the companies driving this sports betting frenzy.
This surge in interest is largely attributed to a more favorable legal environment, according to Dan Ahrens, chief operating officer and portfolio manager at AdvisorShares, who oversees the 'sin stock' AdvisorShares Vice ETF (VICE). The Supreme Court granted states the right to regulate sports betting in 2018. Since then, 38 states and the District of Columbia have legalized the activity. According to PGIM, the sports betting market is projected to double in size from $80 billion in 2022 to $160 billion in 2030 — and a significant portion of this expansion will be fueled by the early-phase US market. Morgan Stanley views the sports betting industry as being in its nascent stages, with growth driven by a user base expanding beyond its core of young, high-income males to encompass older and female bettors.Bettors are not solely wagering on the final outcomes of games. Microbetting — or placing small bets on specific moments within a game — has gained significant popularity and is considered a promising driver of future growth, according to Rene Reyna, Invesco's head of thematic & specialty ETF strategy. Individuals can bet on a wide range of events, from the success of a field goal to the possibility of Taylor Swift making an appearance.Furthermore, sports betting companies are well-positioned to capitalize on advancements in AI, Reyna told BI. Many of these companies are leveraging AI to enhance predictive accuracy, personalize user experiences, and streamline operational processes — ultimately leading to increased earnings. Listed below are 6 stocks that certain analysts, strategists, and money managers anticipate will experience substantial growth as sports betting continues to proliferate across America. The stocks on this list either have overweight ratings at Wall Street banks or were mentioned in interviews with BI
Sports Betting Wall Street Investment AI Microbetting
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