Here’s why you shouldn’t wager on casino stocks
Sanebull on More Americans will be betting… but that doesn’t mean that casino stocks will be on the winning end of such bets. MGM Resorts, Caesars Entertainment, and Wynn have all seen their share prices fall since sports gambling has been made possible nationwide. However, with Americans betting over $150 billion per year on sports, there is money to be had – right?
This probably isn’t where the money is… for casinos, at least. And sportsbooks are typically one of the least profitable operations for casinos. Many casinos rely on sports betting to reel in gamblers and get them to try their hand in blackjack or slots – the real money makers for the house. With that, you can see casinos weren’t cashing in on sports betting even where it was legal to do so.
There will be plenty of competition… because everyone wants in on legal sports betting. The new competition could even include Buffalo Wild Wings who is looking to work with an established sportsbook and enter the market. There will be international sportsbooks that want in on the US market. Who will come out on top? That remains to be seen, but just like gambling – there is no easy money to be had in the market.
