How Sports Betting in the U.S. Might Evolve
We already have a glimpse of how the sports betting landscape in the United States will look. But there are some interesting variables that could ultimately factor into the equation, Buffalo Wild Wings entry into the market being one.
It’s a perfect fit, writes Rafi Farber of CalvinAyre.com. But they also can't go it alone.
Farber points to the partnership arrangement between MGM and online casino group GVC. That partnership-based model will prove critical it seems.
"MGM already has sportsbook knowledge, infrastructure, experience, and economies of scale from Las Vegas, and despite all these advantages still sought out GVC," Farber says.
Everybody figured MGM would enter the legal sports betting market. That was a no-brainer. But Buffalo Wild Wings entry would open the market up dramatically.
Farber observes:
One of the more interesting and obscure options is Ark Restaurants (ARKR). Ark already is a casino runoff stock, as its business model is heavily reliant on setting up restaurants in casinos. Sportsbook doesn’t look like it will have a material impact on Ark for a while, but news of Buffalo Wild moving in to the industry will bring Ark more investor attention and could open it up as a portfolio position for many who never seriously considered it before. 8 of its 20 restaurants are in casinos, with 5 more in New York City, where sportsbook legislation failed in 2018, but could be reintroduced in 2019.
In the end, Ark may not be the most stable of gaming stocks, but it has a compelling case and it is certainly a unique choice for a US gaming portfolio, Farber adds.
- Aaron Goldstein, Gambling911.com