In recent years, the rise of online sports betting and gambling stocks has been a hot topic in the investment world. Companies like DraftKings have seen explosive growth as more states legalize sports betting, making it a lucrative market for investors. However, amidst all the hype surrounding DraftKings, there is another gambling stock that may be a better buy today.
Forget DraftKings — This Gambling Stock Is a Better Buy Today.
When it comes to the world of online gambling and sports betting, one company that has been quietly making waves is Penn National Gaming. With a market cap of over $10 billion, Penn National Gaming is one of the largest gaming companies in the United States, owning and operating 41 gaming properties in 19 states.
Penn National Gaming’s stock has also been on a tear in recent months, surging over 200% in the past year. So what makes Penn National Gaming a better buy than DraftKings?
First and foremost, Penn National Gaming has a much more diversified business model than DraftKings. While DraftKings relies heavily on sports betting, Penn National Gaming operates a wide range of gaming properties, including casinos, racetracks, and online gaming. This diversification helps protect the company from the volatility of the sports betting market and gives it multiple revenue streams to rely on.
Additionally, Penn National Gaming has been making strategic acquisitions to expand its footprint in the online gaming market. In 2020, the company acquired a 36% stake in Barstool Sports, a popular sports media company, for $163 million. This partnership has propelled Penn National Gaming’s online sports betting and gaming platform to new heights, giving it a competitive edge in the market.
Furthermore, Penn National Gaming has a strong balance sheet and solid financials, making it a more stable investment compared to DraftKings. The company has consistently grown its revenue and earnings in recent years, and its strong cash flow generation gives it the ability to invest in future growth opportunities.
In conclusion, while DraftKings may be the darling of the online sports betting world, Penn National Gaming is a better buy for investors looking for a more stable and diversified gambling stock. With its strong financials, strategic acquisitions, and growing online gaming platform, Penn National Gaming is well-positioned to continue its upward trajectory in the coming years. Investors would be wise to consider adding this stock to their portfolios for long-term growth potential.