Jefferies: these are the three best-positioned sports betting stocks

Sports betting stocks have been catching more interest in recent weeks ahead of the NFL season that kicks off this Friday. For anyone still wondering how to play the “sports are back, and so is betting” trade, Jefferies picked the top three names in this niche that it sees as the best bets for investors to cash in.

Why Jefferies likes DraftKings, Caesars, and MGM Resorts

DraftKings Inc (NASDAQ: DKNG), Caesars Entertainment, and MGM Resorts are the best-positioned stocks to benefit from the upcoming surge in sports betting, says Jefferies’ managing director David Katz.

Katz’ thesis is based on the fact that these three companies are actively tapping into technology to make it more convenient for people to participate in sports betting. In his interview with CNBC’s “The Exchange”, he said:

Why Jefferies doesn’t like Penn National Gaming

On the flip side, Katz named Penn National Gaming Inc, which acquired Barstool Sports last year, as the gaming stock that faces more headwinds.

Sports betting is expected to boom even more this NFL season because several states, including Connecticut, Virginia, Arizona, and Tennessee, have recently legalised it. New York and Florida – two of the largest states in terms of betting – are also in the process of legalisation and are expected to join the league soon.