For those stock investors that sunk money into casinos around the United States, their main gamble was on whether the Supreme Court would repeal the nation-wide ban on sports betting. The court ultimately decided to repeal the ban, and casinos around the country, including those in Canada, saw their stocks hit new highs.
The two casino chains that saw the biggest growth in the stock market were Penn National Gaming and Caesars Entertainment Corp. Penn’s stock rose 4.7% to $33.75 per stock, while Caesars was up by 5.5%, to $12.55.
David Katz, a managing director at Jefferies, wrote in a report, “Our conclusions is Penn and Caesars have the most upside, respectively, among casino operators. Meanwhile, Scientific Games has the most upside among the equipment supplies.”
Katz believes that up to 33 different states could potentially legalize sports betting over the next few years. He also believes that, for many, it could just mean issuing licences to casinos and sports betting operators. William Hill, a big name in the sports betting world, has announced their plans to manage a New Jersey sports book in Monmouth Park in the upcoming weeks.
Hill’s share price rose along with the others, and now sits at 313,10 British pounds per share, a rise of 11 per cent.
Katz further added, “Although bookmaking is practical and profitable in-house among the very largest operators in Las Vegas at present, we believe most operators… would likely outsource this aspect in the initial phase.”
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