According to analysts, punters are expected to have bet record amounts on Sunday’s Super Bowl between the Kansas City Chiefs and the Philadelphia Eagles.

DraftKings, Entain, and Flutter will be hopeful that this helps their stocks recover after sharp drops last year.

A record $1.1 billion is expected for sports betting on Sunday’s Super Bowl.

Analysts at PlayUSA estimated that legal sportsbooks took a record $1.1 billion in bets during Super Bowl 57 on Sunday, with stocks like DraftKings [DKNG], Flutter [FLTR.L], and Entain [ENT.L] profiting when the Kansas City Chiefs won for the second time in four years.

A total of $1.1 billion would represent a 15.8% increase over the approximately $950 million in legal betting in 2022.

Meanwhile, the American Gaming Association (AGA) predicted that more than 50 million individuals will bet on the game, making it the largest bet-on event in American football history.

It was also the first time the game was held in Arizona, a state where sports betting is allowed.

DraftKings’ stock price was up 40.4% as of the closing on February 10, the Friday before the game. Flutter was up 9.8%, whereas Entain was down 0.7% after gaining 13.4% in January.

Expansion is Fueled by Paradigm Shifts.

DraftKings, FanDuel, and other major operators’ apps make it easy for punters to bet from their phones while also expanding their alternatives.

Smaller aspects, such as who will catch the first full pass or which song Rihanna will play at halftime, can be wagered on via the applications.

Sports betting is presently allowed in 33 US states, with recent additions including Louisiana, Maryland, Massachusetts, and Ohio, as well as Washington, DC, the nation’s capital.

DraftKings is set to release fourth-quarter (Q4) 2022 earnings on February 16, with analysts expecting a 68.4% increase in revenue but a loss of $0.63 per share. By 2024, the company intends to be profitable.

Flutter, the London-based owner of Paddy Power and FanDuel, is expected to report in the first week of March. FanDuel is on track to meet its full-year revenue projection for 2022, which it raised in November to between $2.95 billion and $3.2 billion.

Meanwhile, Entain provided a Q4 trading update on February 1st. It reported record net gaming revenues for the whole fiscal year 2022, up 71% for its sports betting sector, BetMGM.

After a Quiet Year, the Sports Betting Topic is Making a Comeback.

Online sports betting may be on a post-Super Bowl high, but the theme has declined since the mid-pandemic peaks of 2021.

DraftKings recently announced 140 job cuts, but stated that this was due to operational efficiencies and a shift in investment focus from business-to-business to mobile.

According to Bloomberg, smaller sports betting companies such as Fubo Gaming and MaximBet have shut down in the last year, as investor confidence has generally cooled.

The question is whether huge events such as the Super Bowl will assist to revitalize the industry.

During this year’s contest, both Flutter and DraftKings ran advertisements.

The fact that sports betting is becoming legal in an increasing number of US states will help, however, states holding back include California and Texas.

Grand View Research estimates that the sports betting market will be valued at $83.65 billion in 2022 and will increase at a CAGR of 10.3% until 2030.

Roundhill Sports Betting & iGaming ETF is One of the Funds Under Consideration.

Investors interested in sports betting should choose the Roundhill Sports Betting & iGaming ETF [BETZ], which owns stock in all three of the 41 firms covered in its portfolio.

The fund represents Roundhill’s conviction that the regulatory climate is improving and that further increases in betting and gaming can be expected.

DraftKings is the largest stake as of 12 February, with a 6.76% weighting, followed by Flutter with a 5.87% weighting and Entain with a 5.34% weighting. BETZ has increased by 11.7% year to date.

The iBET Sports Betting & Gaming ETF [IBET] also has exposure to Flutter stock, which is its top holding at 6.05% as of 10 February.

DraftKings is ranked fifth with 4.88%, while Entain is ranked sixth with 3.33%. Year to date, the fund is up 12.8%.

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