By Matt McCallMar 21, 2019
I’m a huge sports fan. Always have been.
I’m an even bigger fan of making money. Much bigger actually, and that’s saying something.
We’re smack in the middle of a great time for both.
In terms of sports, the NBA and NHL playoffs start in just a few weeks. Major League Baseball’s spring training is in “full swing” (sorry, couldn’t resist). In fact, I’m writing to you from Florida, where I’m catching a few Philadelphia Phillies’ practices and games.
And to top it all off… the 2019 NCAA basketball tournament just got under way.
You’ve likely heard it called “March Madness,” and that brings us to investing.
More than 40 million people were expected to fill out those famous brackets – picking winners round-by-round all the way through the championship. From little office pools to big-time bets elsewhere, nearly 20% of adults in the U.S. are expected to bet on the tournament.
The American Gaming Association (AGA) estimates that about $8.5 billion in total will be wagered on the tournament, which puts it up with the Super Bowl as one of the most bet on sports events each year.
This year’s tournament marks a landmark shift. It is the first time in its 80-year history when betting on it is legal outside of Nevada.
Similar to marijuana, the wave of legalized sports betting is building since a Supreme Court decision last May left the question of sports betting up to individual states. It hasn’t taken long for several to jump on board in just the last 10 months. In addition to Nevada, sports betting is now legal in New Jersey, Pennsylvania, West Virginia, Rhode Island, Delaware, Mississippi, and New Mexico.
I realize eight states do not make a wave, but this is just the beginning. More than 20 other states are at least considering legalization.
In less than a year, more than half of all states have either jumped on the sports betting bandwagon or are thinking about it.
A wave of legalization is powerful on its own, but there’s more to the story. In addition to more states allowing sports betting, the ways people can bet and the types of bets available are also about to explode.
Any time the government opens up a huge new market, investors can win very big.
Not convinced? Just look at marijuana.
Last fall, Canada legalized cannabis throughout the entire nation. More and more states in the U.S. are doing the same, even though it is technically illegal on the federal level. (Just wait until that changes!) Thanks to this wave of marijuana legalization, sales in the U.S. and Canada are growing at more than 20% per year… and will do so for many years to come.
The legal marijuana industry is set to grow 10-fold over the coming decade. This will create massive new markets and stock winners.
Actually, it already is. Our marijuana-related stocks have surged 58% on average just since the beginning of the year. One is up more than 156%. Another is up 98.5%. Two more have gained over 70%. All in less than three months.
Another government action – a Supreme Court ruling last May – opened the door to legal sports betting. It will take a little longer to unfold state by state, but this is also a huge opportunity still in its early stages.
Let’s look at some numbers. If you can grasp the significance of these, you’ll be well on your way to making a fortune in the Great American Sports Betting Boom.
In 2017, the last full year before the Supreme Court’s decision, Nevada was the only state that allowed sports gambling. A total of $4.87 billion was wagered legally in that state. But that paled in comparison to the estimated $150 billion that was bet illegally.
About 30 times more money was bet illegally than legally.
As more states come on board, there is no doubt that a large percentage of those illegal bets will move over to legal channels.
Eilers & Krejcik Gaming, a boutique research firm specializing in the gaming and technology sector, sees annual gaming revenue of $6 billion in the U.S. by 2023. That’s based on 32 states legalizing sports gambling, which seems more than reasonable over the next four years.
Like marijuana, the sports betting market is being created in large measure thanks to government actions. Also like marijuana, the opportunity is made even more exciting by the various ways to profit from it.
There are a number of players in the industry that can succeed and take a big piece of the growing sports gambling pie. The most obvious would be the casinos that can easily add a sportsbook and attract gamblers who are already on their properties.
Plus, technology is needed to power the gambling experience on land and on mobile devices. In the coming years, the majority of wagers will be placed via apps. You want to own companies that are at the forefront of this technology.
Then there are the leagues and the teams themselves.
One company that encompasses many of these opportunities is William Hill (WIMHY). You may not be familiar with the name, but in London there are more William Hill betting stores than there are Starbucks or McDonald’s.
As cool as that is, I’m more interested in how aggressively this leading betting and gaming company is going after the U.S. market. William Hill has already expanded into six of the eight states where sports betting is legal, and we know there is more to come.
William Hill has also already partnered with a few professional teams from the minor leagues to the big leagues, including the NHL’s Las Vegas Golden Knights and New Jersey Devils. This trend should continue and include more of the largest franchises in the world.
It also opens the door for something I expect will be a big boost to the company and sports betting itself: in-game wagering. Simply open an app on your phone and place your bet as the game is going on. Which player will score the next goal? Who will commit the next foul? To stick with the sports theme, this is a slam dunk. Sports fans will love it.
William Hill has a big advantage with its well-established app, name recognition, and loyalty among gamblers. Its sportsbook app has been downloaded more than 2.5 million times from the Apple App Store.
I recommend William Hill in my Investment Opportunities service. It’s off to a slow start. We’re down since I added it last July. But honestly, that makes it an even better buy. A lot of the sports betting stocks have been sluggish, but looking out over the long term, I expect them to climb much higher as legalized sports gambling spreads.
That’s a bet I expect to pay off big time.
P.S. I love big investing themes that give us multiple ways to make money.
Sports betting is one, and so is the spreading legalization of marijuana.
Our marijuana stocks have surged 58% on average in less than three months. One of our biggest gainers is a stock that recently went public. We’re up more than 85% since we bought it in early December.
As the marijuana market explodes, more and more companies are coming public. Please don’t rush out and buy them. There’s some homework to do first. Make sure the fundamentals back up the hype. And the timing has to be right.
That’s all part of my Cannabis Cash Calendar system, which I designed specifically for marijuana IPOs. The early results are impressive.
I already have the date circled for my next Cannabis Cash Calendar recommendation – just two weeks away, on April 4.
You can get exclusive access to it as soon as it’s released to my Investment Opportunities readers. Click here to learn more about this opportunity and how to get on the list to be notified.
Even if you don’t know a thing about the marijuana markets… even if you’ve never bought a stock before. If you have just a small stake, you could make a lot of money over the next 12 months. Click here to learn more about this incredible story.
Self-driving cars – aka “autonomous vehicles” (AVs) – represent one of the biggest investment opportunities of the next 25 years. This innovation will transform huge portions of our economy and create trillion dollar ripple effects through time. It will create huge new winners in short periods of time. It will demolish losers in equally short periods of time. It’s critical that you stay on the right side of this trend. Learn more here.
Marijuana has been outlawed most everywhere for decades… but now a wave of legalization is starting to sweep the world. This will create massive new markets and massive stock market winners. Learn more here.
If I had to make one bet for 2019 it would be that betting is going to be big. The Supreme Court’s May 14 ruling cleared the way for states to allow sports gambling. And in my 25 years of investing experience, I honestly cannot remember many things that come close to magnitude of the investing opportunity that opened up to us. Massive amounts of money are involved in sports betting, and I expect massive amounts of money will be made, too. Learn more here.
Don't miss out on the incredible megatrends that are shaping today's market. Gain access to the most powerful market insights and stock advice from Matt McCall absolutely FREE. Join Today!