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7 Stocks To Watch Ahead Of Michigan Online Sports Betting Legislation

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7 Stocks To Watch Ahead Of Michigan Online Sports Betting Legislation

The Michigan Joint Committee on Administrative Rules is set to bless new regulations Tuesday, which could include online sports betting in the state.

What To Know: One year after the state of Michigan legalized sports betting, the state has not allowed online sports betting or iGaming. Until last week, operators were unlikely to offer online sports betting until 2021, according to Action Network.

The appearance of the committee meeting on the Tuesday agenda is a good sign that Michigan could soon allow online sports betting. Michigan is the tenth most populated state and could become a leading state in the fast growing online sports betting market.

“Michigan’s upcoming launch for online sports betting and iGaming is one of the most anticipated to date,” said BofA Securities analyst Shaun Kelley.

Here is a look at the companies that could benefit in Michigan.

Related Link: Exclusive: BETZ ETF Co-Founder Talks Sports Betting Market, DraftKings, Barstool

Penn National: The owner of Detroit’s Greektown Casino is Penn National Gaming (NASDAQ: PENN). The regional casino operator also operates the Barstool Sportsbook, which is set to launch in Michigan when online sports betting is legalized.

Barstool Sportsbook saw impressive downloads and figures during its launch in the state of Pennsylvania. The company believes it can get to a 13% market share of the online sports betting market by 2025.

DraftKings: On Monday, the Detroit Pistons signed partnerships with both DraftKings Inc (NASDAQ: DKNG) and FanDuel. DraftKings is heavily promoting its app and offering free credits and contests to users prior to the official launch in the state.

FanDuel: Owned by Flutter Entertainment (Pink: PDYPY), FanDuel is one of the top online sports betting brands in the country. The company is expected to launch its app in Michigan. FanDuel's partnership with Pistons could give it access to a large sports fan user base.

Rush Street Interactive: The number one sports betting operator in Illinois for September was Rush Street Interactive. It's a leader in the iGaming market in legalized states and has access to enter additional states like Michigan.

The company is going public via the SPAC dMYT Technology Group (NYSE: DMYT).

GAN: One of the companies that could benefit from multiple companies launching online sports betting and iGaming platforms is GAN Limited (NASDAQ: GAN).

GAN signed a 10-year partnership with Wynn Resorts (NASDAQ: WYNN) to power the company’s online sports betting platform in the state of Michigan. GAN also is a partner with land-based Kewadin Casinos who has five casinos in the state of Michigan and could launch an online platform.

Golden Nugget Online: Lancadia Holdings II (NASDAQ: LCA) is bringing Golden Nugget Online via a SPAC Deal. Golden Nugget Online is the number one online casino in New Jersey and operates sports betting in several states.

The company has access to the Michigan online sports betting market. Tilman Fertitta, CEO of Golden Nugget Online, has said the company would spend $4 million to enter the Michigan market.

“It’s amazing what we’ll be generating in Pennsylvania and Michigan – just three states in years to come,” Fertitta said.

MGM Resorts: The MGM Grand Detroit is one of three Detroit casinos. Owner MGM Resorts International (NYSE: MGM) has a 50/50 joint venture called BetMGM, which will launch in Michigan. BetMGM is a partner with the Detroit Red Wings.

BetMGM Spokeswoman Elisa Richardson told the Associated Press the company was “eagerly awaiting” the decision on online sports betting.

Photo credit: Santcomm, Wikimedia Commons

 

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