How New York, Texas And Ontario Could Increase Online Sports Betting Market By $3B

Bank of America held a discussion with some experts in the sports betting industry to discuss some potential upcoming catalysts.

Sports Betting in Texas: Team owners like Jerry Jones (Dallas Cowboys), Mark Cuban (Dallas Mavericks) and Tilman Fertitta (Houston Rockets) are all backing sports betting in Texas.

As the second most populous state, Texas could be worth $1.3 billion at stabilization, BofA analyst Shaun Kelley said in a note.

Penn National Gaming PENN, which Kelley rates Buy, is singled out as a good pick for the Texas market with their ownership of multiple racetracks in the state.

Related Link: Michigan Enters Online Sports Betting Game With Barstool And DraftKings Ready To Roll

Sports Betting in New York: Governor Andrew Cuomo has favored a limited market with help from state lottery companies. A competitive market could provide up to 14 skins and opportunities for several sports betting companies to get a piece of the large pie in the state.

The analyst estimates the New York market to have a total addressable size of $900 million under a multi-operator scenario.

DraftKings Inc DKNG has a strong market share in neighboring New Jersey and MGM Resorts International MGM made an acquisition of a New York casino in 2019, which could benefit the companies in the state.

Sports Betting in Canada: The repeal of the national single-sports betting band and efforts to privatize Ontario’s state-run system are reasons for optimism and opportunity in neighboring Canada.

“We estimate Ontario has about a $750 million opportunity for sports betting and another $1.1 billion if iGaming is included,” Kelley said.

The analyst notes that Ontario’s size would make it equivalent to the fifth most populous state in the United States.

(Photo: Penn National Gaming)