PENN Entertainment, Inc. (PENN)

Sports betting growth rates 'speak for themselves': Analyst

The 2024 Women's NCAA National Championship game set a record as the most bet-on female sports event, highlighting the rapid expansion of the sports betting industry. Needham & Co. Managing Director Bernie McTernan and Oppenheimer Equity Research Analyst for Consumer Internet Jed Kelly join Market Domination to discuss growth predictions for this sector. Kelly notes that the sports betting industry has the potential to grow over 30% this year alone, emphasizing that the numbers "speak for themselves." He explains that sports betting is being "widely adopted," with the audience starting to expand to a broader demographic as mobile apps make it easily accessible. Kelly says prominent industry players, such as DraftKings (DKNG), are beginning to demonstrate their ability to achieve profitability by "using the internet to get scale advantages," allowing them to quickly outpace traditional brick-and-mortar betting institutions like casinos. McTernan states that as sports betting and sports media become "more mainstream," he foresees continued growth in the sector. While some states have yet to fully embrace sports betting, he believes that "over time," widespread adoption will occur, as it is "something consumers want to be able to do." McTernan notes the NCAA game reflects the sports betting industry's focus on catering to consumer demand and expanding the range of sports available for wagering. However, he raised concerns about whether the industry's tactics, such as pre-made parlays, may be "bleeding customers dry". For more expert insight and the latest market action, click here to watch this full episode of Market Domination. Editor's note: This article was written by Angel Smith