Online Gambling Is Booming Amid the Lockdown

Andrew Bary Sin Stocks CZR ERI FLTR.DB PENN DraftKings Eldorado Resorts FanDuel Flutter Entertainment Penn National Gaming Caesars Entertainment Diamond Eagle Acquisition Gambling Industries Leisure/Arts/Hospitality Online Gambling ERI PENN Thomas Allen North America United States Northeast U.S. New Jersey Ownership Changes Acquisitions/Mergers/Shareholdings Corporate Actions Corporate/Industrial News Games Political/General News Arts/Entertainment Sports Content Types Factiva Filters C&E Industry News Filter CZR DEAC DRFTK.XX ERI FLTR.DB FNDL.XX I/CNO M/LEAH MS N/ART N/CAC N/CNW N/DJN N/GEN N/TNM N/WER PENN R/NJ R/NME R/US R/USE Barrons.com Barrons Blogs Wires CODES_REVIEWED Companies Consumer Coronavirus Sin Stocks US author Andrew Bary author|Andrew Bary topicid 6151 name Andrew Bary extractedtext Andrew Bary rank 1 codetype author code andrew_bary nameformat surname_first author Andrew Bary id Andrew Bary barrons_display_subject BARSINSTOCK barrons_display_subject|BARSINSTOCK canbedisplaysubject true codetype BARRONS_DISPLAY_SUBJECT name Sin Stocks source MANUAL code BARSINSTOCK value BARSINSTOCK status modified co drftkn co|drftkn fullextractedtext DraftKings codetype co displayname DraftKings confidence 100 why occur extractedtext DraftKings source FACTIVA subcat com code drftkn relevance 30 name DraftKings significance passing confidencerange high relevancerange low fcode drftkn onlinesignificance passing-mention co exchld co|exchld country US symbol ERI codetype co displayname Eldorado Resorts why occur extractedtext Eldorado Resorts source FACTIVA seoname eldorado_resorts name Eldorado Resorts countrycode US relevancerange low chartingsymbol STOCK/US/XNAS/ERI fcode exchld fullextractedtext Eldorado Resorts ticker ERI confidence 100 subcat com code exchld relevance 22 significance prominent confidencerange high exchange Nasdaq exchangeisocode XNAS status modified onlinesignificance prominent co hubdub co|hubdub fullextractedtext FanDuel codetype co displayname FanDuel confidence 100 why occur extractedtext FanDuel source FACTIVA subcat com code hubdub relevance 26 name FanDuel significance passing confidencerange high relevancerange low fcode hubdub onlinesignificance passing-mention co pddyl co|pddyl country IE symbol FLTR.DB codetype co displayname Flutter Entertainment why occur extractedtext Flutter Entertainment source FACTIVA seoname flutter_entertainment name Flutter Entertainment countrycode IE relevancerange low chartingsymbol STOCK/IE/XDUB/FLTR fcode pddyl fullextractedtext Flutter Entertainment ticker IE:FLTR confidence 100 subcat com code pddyl relevance 22 significance passing confidencerange high exchangeisocode XDUB onlinesignificance passing-mention co pnsgm co|pnsgm country US symbol PENN codetype co displayname Penn National Gaming why occur extractedtext Penn National Gaming source FACTIVA seoname penn_national_gaming name Penn National Gaming countrycode US relevancerange low chartingsymbol STOCK/US/XNAS/PENN fcode pnsgm fullextractedtext Penn National Gaming ticker PENN confidence 100 subcat com code pnsgm relevance 22 significance prominent confidencerange high exchange Nasdaq exchangeisocode XNAS status modified onlinesignificance prominent co prmus co|prmus country US symbol CZR codetype co displayname Caesars Entertainment why occur extractedtext Caesars Entertainment source FACTIVA seoname caesars_entertainment name Caesars Entertainment countrycode US relevancerange low chartingsymbol STOCK/US/XNAS/CZR fcode prmus fullextractedtext Caesars Entertainment ticker CZR confidence 100 subcat com code prmus relevance 22 significance prominent confidencerange high exchange Nasdaq exchangeisocode XNAS status modified onlinesignificance prominent co wyalej co|wyalej fullextractedtext Diamond Eagle Acquisition codetype co displayname Diamond Eagle Acquisition confidence 100 why occur extractedtext Diamond Eagle Acquisition source FACTIVA subcat com code wyalej relevance 26 name Diamond Eagle Acquisition significance prominent confidencerange high relevancerange low fcode wyalej status modified onlinesignificance prominent company PENN company|PENN name Penn National Gaming significance PROMINENT company ERI company|ERI name Eldorado Resorts significance PROMINENT company CZR company|CZR name Caesars Entertainment significance PROMINENT company FLTR.DB company|FLTR.DB name Flutter Entertainment significance PASSING-MENTION djn N/TNM djn|N/TNM significance prominent name N/TNM why about source FACTIVA fcode N/TNM codetype djn code n_tnm onlinesignificance prominent djn N/CAC djn|N/CAC name N/CAC why lineage source FACTIVA fcode N/CAC codetype djn code n_cac djn N/CNW djn|N/CNW name N/CNW why lineage source FACTIVA fcode N/CNW codetype djn code n_cnw djn DRFTK.XX djn|DRFTK.XX codetype djn why occur source FACTIVA code drftk_xx name DRFTK.XX significance passing fcode DRFTK.XX onlinesignificance passing-mention djn MS djn|MS codetype djn why occur source FACTIVA code ms name MS significance passing fcode MS onlinesignificance passing-mention djn ERI djn|ERI codetype djn why occur source FACTIVA code eri name ERI significance passing fcode ERI onlinesignificance passing-mention djn FNDL.XX djn|FNDL.XX codetype djn why occur source FACTIVA code fndl_xx name FNDL.XX significance passing fcode FNDL.XX onlinesignificance passing-mention djn FLTR.DB djn|FLTR.DB codetype djn why occur source FACTIVA code fltr_db name FLTR.DB significance passing fcode FLTR.DB onlinesignificance passing-mention djn PENN djn|PENN codetype djn why occur source FACTIVA code penn name PENN significance passing fcode PENN onlinesignificance passing-mention djn CZR djn|CZR codetype djn why occur source FACTIVA code czr name CZR significance passing fcode CZR onlinesignificance passing-mention djn DEAC djn|DEAC codetype djn why occur source FACTIVA code deac name DEAC significance passing fcode DEAC onlinesignificance passing-mention djn I/CNO djn|I/CNO codetype djn why about source FACTIVA code i_cno name I/CNO significance prominent fcode I/CNO onlinesignificance prominent djn M/LEAH djn|M/LEAH codetype djn name M/LEAH why lineage source FACTIVA code m_leah fcode M/LEAH djn N/GEN djn|N/GEN codetype djn name N/GEN why lineage source FACTIVA code n_gen fcode N/GEN djn N/ART djn|N/ART codetype djn name N/ART why lineage source FACTIVA code n_art fcode N/ART djn R/NJ djn|R/NJ codetype djn why about source FACTIVA code r_nj name R/NJ significance prominent fcode R/NJ onlinesignificance prominent djn R/US djn|R/US codetype djn why about source FACTIVA code r_us name R/US significance prominent fcode R/US onlinesignificance prominent djn R/NME djn|R/NME codetype djn name R/NME why lineage source FACTIVA code r_nme fcode R/NME djn R/USE djn|R/USE codetype djn name R/USE why lineage source FACTIVA code r_use fcode R/USE djn N/DJN djn|N/DJN codetype djn name N/DJN source DJN-CONTROL code n_djn value N/DJN status modified inactivebydefault true djn N/WER djn|N/WER codetype djn name N/WER source DJN-CONTROL code n_wer value N/WER status modified inactivebydefault true first_publish_headline Online Gambling Is Booming—and That Could Persuade More States to Allow It first_publish_headline|Online Gambling Is Booming—and That Could Persuade More States to Allow It flow NWREGULAR flow|NWREGULAR codetype FLOW name Wires source MANUAL value NWREGULAR code NWREGULAR status modified flow Barrons.com flow|Barrons.com codetype FLOW name Barrons.com source MANUAL value Barrons.com code online status modified name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW source MANUAL title Product code Barrons_Blogs name Barrons Blogs value Barrons Blogs status modified headline Online Gambling Is Booming—and That Could Persuade More States to Allow It headline|Online Gambling Is Booming—and That Could Persuade More States to Allow It in i97912 in|i97912 codetype in why about source FACTIVA code i97912 name Gambling Industries significance prominent fcode i97912 onlinesignificance prominent in ionlgam in|ionlgam codetype in why about source FACTIVA code ionlgam name Online Gambling significance prominent fcode ionlgam onlinesignificance prominent in ilea in|ilea codetype in name Leisure/Arts/Hospitality why lineage source FACTIVA code ilea fcode ilea media media-2 media|media-2 responsive layout wrap softcrop Horizontal imphotoid im-177623 location https://images.barrons.com/im-177623/?size=1.5 media media-1 media|media-1 softcrop Horizontal imphotoid im-177623 location https://images.barrons.com/im-177623/?size=1.5 ns c181 ns|c181 significance prominent name Acquisitions/Mergers/Shareholdings why about source FACTIVA fcode c181 codetype ns code c181 onlinesignificance prominent ns c18 ns|c18 name Ownership Changes why lineage source FACTIVA fcode c18 codetype ns code c18 ns cactio ns|cactio name Corporate Actions why lineage source FACTIVA fcode cactio codetype ns code cactio ns ccat ns|ccat name Corporate/Industrial News why lineage source FACTIVA fcode ccat codetype ns code ccat ns ncat ns|ncat name Content Types why lineage source FACTIVA internalsymbol true fcode ncat codetype ns code ncat ns nfact ns|nfact name Factiva Filters why lineage source FACTIVA internalsymbol true fcode nfact codetype ns code nfact ns nfcpin ns|nfcpin name C&E Industry News Filter why lineage source FACTIVA internalsymbol true fcode nfcpin codetype ns code nfcpin ns gcagm ns|gcagm codetype ns why about source FACTIVA code gcagm name Games significance prominent fcode gcagm onlinesignificance prominent ns gcat ns|gcat codetype ns name Political/General News why lineage source FACTIVA code gcat fcode gcat ns gent ns|gent codetype ns name Arts/Entertainment why lineage source FACTIVA code gent fcode gent ns GSPO ns|GSPO codetype ns name Sports source MANUAL code gspo fcode GSPO status modified nwchain SB515740919467980546418045863300732167255781 nwchain|SB515740919467980546418045863300732167255781 pe ERI pe|ERI codetype pe displayname ERI extractedtext ERI source FACTIVA code eri name ERI firstname ERI nameformat surname_first pe PENN pe|PENN lastname PENN codetype pe displayname PENN extractedtext PENN source FACTIVA code penn name PENN nameformat surname_first pe Thomas Allen pe|Thomas Allen lastname Allen codetype pe displayname Allen, Thomas extractedtext Thomas Allen source FACTIVA code thomas_allen name Thomas Allen firstname Thomas nameformat surname_first re usnj re|usnj codetype re why about source FACTIVA subcat sp code usnj name New Jersey significance prominent fcode usnj onlinesignificance prominent re usa re|usa codetype re why about source FACTIVA subcat cntry code usa name United States significance prominent fcode usa onlinesignificance prominent re namz re|namz codetype re why lineage source FACTIVA subcat snr code namz name North America fcode namz re use re|use codetype re why lineage source FACTIVA subcat sr code use name Northeast U.S. fcode use relay SYND relay|SYND codetype RELAY name Syndication source EXPANDER value SYND code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED codetype STATISTIC code CODES_REVIEWED subject BARSINSTOCK subject|BARSINSTOCK codetype SUBJECT title Sin Stocks code BARSINSTOCK name Sin Stocks canbedisplaysubject true ruleid BARSINSTOCK value BARSINSTOCK status modified subject BARCONSUMER subject|BARCONSUMER codetype SUBJECT title Consumer code BARCONSUMER name Consumer canbedisplaysubject true ruleid BARCONSUMER value BARCONSUMER status modified subject BARCOMP subject|BARCOMP codetype SUBJECT title Companies code BARCOMP name Companies canbedisplaysubject true ruleid BARCOMP value BARCOMP status modified subject BARUS subject|BARUS codetype SUBJECT title US code BARUS name US canbedisplaysubject true ruleid BARUS value BARUS status modified subject BARCORONA subject|BARCORONA codetype SUBJECT title Coronavirus code BARCORONA name Coronavirus canbedisplaysubject true ruleid BARCORONA value BARCORONA status modified wordcount 647 wordcount|647 id facebook id|facebook news_tab_url https://www.barrons.com/articles/online-gambling-is-booming-why-more-states-could-legalize-it-51587384010 Photograph by Eric Baradat/Getty Images Online Gambling Is Booming—and That Could Persuade More States to Allow It Online Gambling Is Booming—and That Could Persuade More States to Allow It Online Gambling Is Booming. Why More States Could Legalize It.

Morgan Stanley analyst says the impact of Covid-19—which has shut casinos -- could spur more states to legalize online casino and sports betting.

Online Gambling Is Booming Amid the Lockdown

Morgan Stanley analyst says the impact of Covid-19 could spur more states to legalize online casino and sports betting.

https://www.barrons.com/articles/sports-gambling-will-be-a-huge-opportunity-bet-on-these-stocks-51579915327 mailto:andrew.bary@barrons.com Online Gambling Is Booming—and That Could Persuade More States to Allow It By Andrew Bary Photograph by Eric Baradat/Getty Images

With casinos closed across the country and sports betting drying up, online casino-style gambling is proving to be a bright spot for the industry.

Internet gambling revenues (excluding sports betting) in New Jersey rose 66%, to $65 million in March, the state reported recently. Online gambling includes slots as well as table games like blackjack. New Jersey is a leader in internet gambling.

“We believe the impact of Covid-19 could spur more states to legalize online casino and sports betting,” Morgan Stanley gaming analyst Thomas Allen wrote in a client note.

Only a small number of states allow online casino-type gambling including New Jersey, Pennsylvania, and Nevada. More than 15 states permit online sports gambling, with an even greater number allowing sports betting at physical casinos.

Allen wrote that online gambling revenues (excluding sports betting) in New Jersey are on track to exceed $700 million this year, up from $483 million in 2019, helped by a shift of bettors from traditional casinos, as well as by online sports bettors.

Sports bettors, meanwhile, face meager offerings. On Friday, for instance, there was horse racing from a number of venues around the country, including Gulfstream Park in Florida. Other sports open to wagering include table tennis from Russia, pro basketball from Taiwan, and darts.

Despite the collapse in online sports betting, investors remain excited about Diamond Eagle Acquisition (ticker: DEAC), a special purpose acquisition company that has a deal to merge with internet sports betting leader DraftKings.

Diamond Eagle shares gained 49 cents, to $16.58 Friday, up about 50% this year. The stock had traded around $10 before it announced the merger with DraftKings in late 2019. Many casino stocks are off 40% or more this year. Diamond Eagle shareholders are due to vote on the merger on Thursday. Upon approval, the company will change its name to DraftKings.

Diamond Eagle has a sizable market value of $5.8 billion based on a fully diluted share count of around 347 million shares. That is considerably above the market values of Penn National Gaming (PENN) and Eldorado Resorts (ERI) in the $1 billion to $2 billion range, as well as exceeding that of Caesars Entertainment (CZR) at about $5 billion.

Diamond Eagle’s strong stock price shows investor enthusiasm for what had been the high-growth online sports gambling business led by DraftKings and FanDuel, which is controlled by Flutter Entertainment (PDYPY).

Most online sports betting is done on mobile phones. Once professional sports resume, many bettors may feel more comfortable wagering on sports on their phones than going to a casino for traditional games like blackjack, craps, and slots.

Barron’s wrote a cover story earlier this year about the boom in online sports gambling.

Writing about the prospect for more states legalizing online casino and sports gambling, Allen said:

“Covid-19 will likely have a negative impact on state budgetary positions, forcing them to look for new sources of taxes. In addition, legalization and the rollout of online forms of gambling can be much quicker than building bricks-and-mortar casinos (Massachusetts a good example). Finally, online can be at least a slight offset to lost revenues during phases of social distancing as we are experiencing today.”

Write to Andrew Bary at andrew.bary@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.