I never been the gambling type, but my boys make it their duty to go to Las Vegas every year. They hit the casinos hard and love to bet on all things sports.
My partner called me a couple of months ago super excited asking if I’ve heard about sports betting being legal. Completely unmoved I replied, “No, and I don’t care”.
Shocked at my indifference He said “You don’t understand the amount of money to be made here! Sports betting is legal now so let’s bet it up!”
Although I dismissed the thought at first, later I gave it a second look.
Back in May the Supreme court overturned the Professional and Amateur Sports Protection Act (PASPA), the law put in place by George H.W. Bush in 1992 that limited legal sports betting to one state.
PASPA banned states from regulating and taxing sports betting. Sports betting is a $150 billion per year industry and 97% of that amount stemmed from illegal betting.
Now that PASPA has been repealed states have wasted no time to establish sports betting so they can snatch up some of these riches.
As of right now, states such as Nevada, Mississippi, New Jersey, and Delaware have full scale legalized sports betting.
New York, Pennsylvania, Rhode Island, and West Virginia have passed bills to legalize sports betting.
Additionally, California, Kansas, Oklahoma, Louisiana, Missouri, Kentucky, Iowa, Indiana, Ohio, Illinois, Michigan, Connecticut, Maryland, and South Carolina have all introduced bills and are working towards legalizing sports betting.
As sports betting becomes more widespread we can expect more money to pour into these industries.
CEO’s of gaming, gambling and sports betting companies have been purchasing massive amounts of their company’s stocks upon the repeal of PASPA. This run up is evident in the stock charts.
I’m not the one to advocate gambling but as traders we must seek how to capitalize on those who partake in the gamblers lifestyle.
There is a great opportunity to share in the wealth of this billion dollar industry with probability on our side. Cha ching!
I have prepared a Sports Betting Watchlist for you to capitalize on the upcoming gains this industry is poised to make.
PENN, PNK, CZR, LVS, BYD, SGMS, REV, and ATVI are great candidates for the wave to come.
With that, I bid you good trading Wallstreet Jackboyz and girls!