With the rapid growth of the sports betting industry in recent years, many investors are looking for ways to invest in top sportsbook operators like Fanduel. Fanduel is one of the largest and most well-known sports betting platforms in the United States. It offers sports betting, daily fantasy sports and online casino games. As more states legalize online gambling, Fanduel’s business has huge growth potential. Here are 3 main options for investors to gain exposure to Fanduel and capitalize on the booming sports betting industry.
Invest in Fanduel parent company Flutter Entertainment stock
The most direct way to invest in Fanduel is to buy shares of its parent company Flutter Entertainment, which is listed on the London Stock Exchange. Flutter is a global sports betting and gaming operator that owns Fanduel, Paddy Power, Betfair and other leading brands. Flutter’s stock price has soared in recent years thanks to Fanduel’s rapid US expansion. Investors can buy Flutter stock directly or via US brokers that give access to international markets. Flutter also issues American Depositary Receipts (ADRs) that trade on the US OTC markets.
Invest in ETFs with exposure to Flutter Entertainment and sports betting stocks
Another option is to invest in ETFs that have holdings in Flutter Entertainment stock and other sports betting companies. The Roundhill Sports Betting & iGaming ETF (BETZ) and VanEck Vectors Gaming ETF (BJK) both include Flutter stock as a top holding. These ETFs give exposure to the overall gambling and sports betting industry, reducing reliance on just one stock. Investors can conveniently buy into the sports betting boom through diversified industry ETFs.
Invest in sports betting SPACs and related stocks
Some publicly traded special purpose acquisition companies (SPACs) have been formed specifically to merge with a sports betting or iGaming business. For example, the Sports Entertainment Acquisition Corp SPAC is acquiring sports betting platform Super Group. Investing in these sports betting-focused SPACs provides exposure ahead of a merger deal being completed. Other related stocks like Genius Sports (GENI) which provides data and technology to sportsbooks are an indirect way to invest in the industry’s growth.
Investing in the high-growth sports betting sector can be done by buying stock in Fanduel parent Flutter Entertainment, industry ETFs containing sportsbooks, or sports betting SPACs and related stocks. As more US states legalize online sports betting, Fanduel and its parent Flutter have massive upside potential.