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The Current State of Sports Betting & Why Esports Matter
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Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into the current state of sports betting in the U.S. after daily fantasy sports power FanDuel opened its first sportsbook over the weekend. The conversation then shifts to the continued rise of esports and their importance to media companies after Disney’s (DIS - Free Report) big announcement last week.
FanDuelGroup opened its first sportsbook on Saturday at the Meadowlands Race Track in New Jersey, which is in walking distance from where the New York Giants and Jets play. The move comes after UK-based gaming giant Paddy Power Betfair plc PDYPY officially closed its deal with the daily fantasy company to combine its U.S. businesses with FanDuel.
The new move is part of a massive new sports betting world that could see the likes of MGM (MGM - Free Report) , Las Vegas Sands (LVS - Free Report) , and Wynn Resorts (WYNN - Free Report) become major players in states that legalize sports betting on their own or through partnerships. Sports betting companies such as William Hill WIMHY and Churchill Downs (CHDN - Free Report) could also make their presence felt. Meanwhile, investors should be on the lookout for tech players that enter the space as mobile and real-time online betting is both the present and the future of the industry.
Moving on, shares of Activision Blizzard surged last week after it announcement that it landed a multi-year deal with Disney that will see its esports Overwatch League broadcast live on both ESPN and ABC. Disney secured the deal for an undisclosed amount, and it is worth noting that its TV and streaming contract will not impact existing rights agreements the Overwatch League has with partners such as Amazon’s (AMZN - Free Report) widely popular Twitch streaming platform.
The Overwatch League, which is set to conclude its inaugural season this summer, and its city-based teams is a potentially huge step in the right direction for esports. There is already big money behind professional video gaming, which include sponsors such as Intel (INTC - Free Report) , T-Mobile (TMUS - Free Report) , and HP (HPQ - Free Report) . In fact, the overall esports economy is expected to hit $906 million in 2018, up from $696 million in 2017, according to market research firm Newzoo—with the potential to reach $1.5 billion by 2020.
Looking ahead, Facebook and Twitter TWTR could easily dive into esports amid their larger live sports ventures. Investors should also pay close attention to the rise of sports-based video games, which Take-Two Interactive (TTWO - Free Report) and the NBA’s brand new NBA 2K League is a shining example of.
As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating on Apple Podcasts.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
The Current State of Sports Betting & Why Esports Matter
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into the current state of sports betting in the U.S. after daily fantasy sports power FanDuel opened its first sportsbook over the weekend. The conversation then shifts to the continued rise of esports and their importance to media companies after Disney’s (DIS - Free Report) big announcement last week.
FanDuelGroup opened its first sportsbook on Saturday at the Meadowlands Race Track in New Jersey, which is in walking distance from where the New York Giants and Jets play. The move comes after UK-based gaming giant Paddy Power Betfair plc PDYPY officially closed its deal with the daily fantasy company to combine its U.S. businesses with FanDuel.
The new move is part of a massive new sports betting world that could see the likes of MGM (MGM - Free Report) , Las Vegas Sands (LVS - Free Report) , and Wynn Resorts (WYNN - Free Report) become major players in states that legalize sports betting on their own or through partnerships. Sports betting companies such as William Hill WIMHY and Churchill Downs (CHDN - Free Report) could also make their presence felt. Meanwhile, investors should be on the lookout for tech players that enter the space as mobile and real-time online betting is both the present and the future of the industry.
Moving on, shares of Activision Blizzard surged last week after it announcement that it landed a multi-year deal with Disney that will see its esports Overwatch League broadcast live on both ESPN and ABC. Disney secured the deal for an undisclosed amount, and it is worth noting that its TV and streaming contract will not impact existing rights agreements the Overwatch League has with partners such as Amazon’s (AMZN - Free Report) widely popular Twitch streaming platform.
The Overwatch League, which is set to conclude its inaugural season this summer, and its city-based teams is a potentially huge step in the right direction for esports. There is already big money behind professional video gaming, which include sponsors such as Intel (INTC - Free Report) , T-Mobile (TMUS - Free Report) , and HP (HPQ - Free Report) . In fact, the overall esports economy is expected to hit $906 million in 2018, up from $696 million in 2017, according to market research firm Newzoo—with the potential to reach $1.5 billion by 2020.
Looking ahead, Facebook and Twitter TWTR could easily dive into esports amid their larger live sports ventures. Investors should also pay close attention to the rise of sports-based video games, which Take-Two Interactive (TTWO - Free Report) and the NBA’s brand new NBA 2K League is a shining example of.
As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating on Apple Podcasts.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>