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We already hit an 82% winner from gambling stocks, and we're going to share another potential profit opportunity in just a bit.
But first, let's start with some major news about a new collaboration...
Las Vegas casino operator Boyd Gaming Corp. (NYSE: BYD) just signed a strategic partnership with FanDuel, a popular online fantasy sports gaming site. FanDuel and Boyd will explore sports betting and online gaming opportunities across the country.
Boyd Gaming is a leader in the gaming industry, and once it completes two acquisitions, it will operate 29 casinos across 10 states.
The company is also working with MGM Resorts International (NYSE: MGM) to expand mobile and online gaming platforms at physical casinos across the country.
Caesars Entertainment Gets Crushed
It was an ugly week for shareholders of Caesars Entertainment Corp. (Nasdaq: CZR). Shares opened at $11.45 on Aug. 1, but plunged to $9.60 on Aug. 2.
That's a 16.1% drop in just one day. The dip was thanks to earnings per share (EPS) not meeting expectations in the company's recent earnings report.
Although revenues of $2.1 billion were in line with what Wall Street expected, EPS of just $0.04 was half of what analysts had forecasted.
It also didn't help that the company said demand was softening for hotel rooms in July and August.
That raised concerns about the company's future earnings.
Mississippi Launches Sports Betting
On Wednesday, Mississippi became the fourth state to legalize sports betting.
The state joins Nevada, New Jersey, and Delaware in the arena.
The Gold Strike and its sister casino in Biloxi became the first two locations to open a sportsbook in Mississippi.
Casino Stocks to Watch
The Supreme Court's decision to strike down the Federal ban on state gambling laws has created a massive investment opportunity in gambling stocks.
Many investors left this gambling stock for dead.
But here's the thing - once that Supreme Court decision was made, Dover became an attractive takeover candidate.
And in just four weeks, we saw an 82% return on DDE because of an acquisition offer.
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Finding another winner like DDE leads us to Nevada Gold & Casinos Inc. (NYSEAMERICAN: UWN).
Right now, this company is selling off some of its assets in Nevada and moving its headquarters to Washington.
It also has assets in South Dakota, a state that will likely put gambling on the ballot within the next two years.
This could be the start of a turnaround.
The stock is trading at just 1.08 price-to-book value in an industry where the average MRQ is 6.64 price-to-book.
A new CEO will lead the firm's transition into Washington, and UWN's assets might attract a big player like MGM International.
There aren't a lot of deals in the casino space right now, but Nevada Gold provides an interesting proposition for a bigger firm to grow outside of Las Vegas or Atlantic City.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.