There’s a new opportunity for investors to profit from sports betting after Monday’s Supreme Court decision.
Let’s explore the issue, starting with a chart. Please click here for an annotated chart of Penn National Gaming PENN. Penn National Gaming operates a number of casinos and race tracks in the U.S.
Please observe the following from the chart:
• The stock broke out on news of the Supreme Court overturning a ban on sports betting.
• The breakout was on heavy volume.
• Previously, as shown on the chart, the stock gapped open on the news of an acquisition approval.
• The gap open was on heavy volume.
• The relative strength index (RSI) shows that the stock is very overbought. The RSI pattern indicates that, perhaps after a pullback, the stock may go higher.
The casino advantage
Each state will have its own laws governing sports betting. If states say that sports betting has to have a physical nexus, Penn National Gaming has a significant advantage because of its many locations across the country. The other stocks to consider are Boyd Gaming BYD, and Caesars Entertainment CZR. Race-track operator Churchill Downs CHDN, will also benefit.
The risk is if states allow online betting without any physical nexus, regional casinos and race tracks may not benefit in a big way. In this case, the stock to consider is Stars Group TSG, that is big in online sports betting.
Wynn Resorts WYNN, and Las Vegas Sands LVS, will not benefit because they do not have a big presence in the U.S. outside Nevada. MGM Resorts MGM, may benefit from online betting….Read more at MarketWatch.
A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.