By Callum Keown
The U.S. sports betting market is on the cusp of a nationwide boom.
Industry heavyweights have been clamoring to make the most of the huge opportunity ahead after a year ago last month the Supreme Court relaxed a federal law banning sports betting.
The ruling opened the door for the estimated $400 billion black market to morph itself into the mainstream.
We look at the top five companies set to hit the jackpot just 12 months after the first legal sports bets were placed in New Jersey in June last year. Earlier this week, New York became the 10th state to join the party after Rivers Casino began taking wagers.
The boom has already begun in some places, New Jersey gamblers waged nearly $3bn over the past 12 months in the wake of the first bet, but there is plenty more to come.
U.K. gambling companies, experienced in sports betting, have struck lucrative partnerships with U.S. giants across the pond.
The newly-paired betting giants, along with individual states, are making moves ahead of the new NFL season in September.
Here’s are four U.K. stocks, and one from the U.S., that investors should watch as the U.S. sports betting market looks set to boom.
The tie-up between MGM /zigman2/quotes/209932643/composite MGM -8.08% , the biggest casino operator in the U.S. and GVC /zigman2/quotes/207493593/delayed UK:GVC +7.49% , the owner of U.K. betting powerhouse Ladbrokes Coral could be as formidable as it sounds.
Joint venture chief executive Adam Greenblatt expected a potential market of “really avid sports fans” that is 75% larger than the U.K. to emerge within a couple of years.
On Wednesday GVC reported 16% online revenue growth in the second quarter, helping to offset U.K. retail woes.
The company also confirmed its New Jersey full online launch was on track for the start of the NFL season.
GVC bosses have championed the “power” of the combination with MGM, which pulls in more than $4 billion in revenue just from Las Vegas.
William Hill /zigman2/quotes/201135907/delayed UK:WMH +7.27% and its U.S. partner Eldorado /zigman2/quotes/205281174/composite ERI -4.78% both have analysts backing the stock with overweight ratings almost across the board.
The partnership, launched in September last year, brings William Hill’s sports betting nous together with Eldorado’s 23-million strong customer base and casino portfolio.