Investment Firm Recommends Penn National and DraftKings Stocks

Online gambling is making big waves in the United States. Thus, an investment firm recommends Penn National and DraftKings stocks.

Goldman Sachs said that the two stocks could outperform, especially if Florida, Texas, and New York allow online betting. At present, the states are thinking of legalizing online sports wagering to solve their budget deficits via tax revenue.

Goldman reiterated its Buying rating on Penn National. According to sports betting odds experts, its Barstool Sports brand contributed to its bottom line. Goldman estimated its shares to be worth $4 each. On the other hand, Goldman upgraded DraftKings’ rating to Buy. The company said that DraftKings’ strong branding would allow them to grow faster than their competitors.

Investment Firm Recommends Online Gambling Stocks

Players enjoy wagering on live events that they stream on smartphones or mobile devices. They also play online slot machines on their devices. Sports betting analysts said there’s room for sustained development due to the operators’ relationships with traditional media companies. In Penn National’s case, they benefit from the success of Barstool.

DraftKings’ shares increased seven percent. Also, it is not 281 percent higher compared to last year. It has a one-year gain of 17 percent in the S&P 500 Index. On the other hand, Penn National shares dropped by 1.2 percent. However, its value is still up 298 percent year over year.

New York Governor Andrew Cuomo said that he supports online sports betting. According to sports betting analysts, New York can be the most significant state for online sports betting. It can also earn as much as $20 billion in wagers each year that will result in $100 million in state tax revenue.

However, the governor is thinking of having a sports betting monopoly. If that is the case, the revenues might be lower. Having multiple operators can optimize the state’s tax revenue.