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One of the most under-the-radar M&A trends of 2018 was in the sports gambling space.
It slipped past the attention of many investors thanks to the rise of marijuana, cryptocurrencies, and the ever-frantic pace of consolidation in the tech sector.
But make no mistake, sports gambling is coming to a state near you, and it will be a huge profit opportunity for those who get in early.
Like cannabis, sports gambling will bring much-needed tax revenue to states and municipalities across the country. By 2023, the size of the U.S. sports betting market is expected to reach $3.1 billion.
But I love when new industries pop up out of nowhere thanks to deregulation. Like the rush of marijuana deals we saw in 2018, sports gambling has seen a similar wave of dealmaking.
But the wave of M&A in legal gambling is just getting started.
And today, I wanted to share one company that I expect will far surpass the gains I just mentioned…
How to Make the Most Money from the Gambling Industry in 2019
Eventually, most states will legalize sports betting, or they will be forced to watch their citizens donate money to their neighbors.
I think legalization spreads faster than many analysts currently anticipate because the tax revenue is so sorely needed.
That's already kicked off an early round of acquisitions since the laws changed.
Scientific Games Corp. (NASDAQ: SGMS) snapped up sports data provider Don Best Sports Corp. Boyd Gaming Corp. teamed with FanDuel Sports, while Paddy Power Betfair purchased Meadowland Racetrack in New Jersey, Tioga Downs in New York, and FanDuel.
Despite all the news coverage about deals and partnerships, the mainstream media has overlooked one company that is likely to dominate a huge chunk of the market. In fact, this company is behind the technology used to make sports betting possible.
And this company has once again slipped under the radar.
But that's fine.
It just means there will be more money for us…