#7 - HOFV (NASDAQ:HOFV)
If you’re an investor that’s comfortable with speculative investments, I’d invite you to take a close look at Hall of Fame Resort & Entertainment (NASDAQ:HOFV). I’ve described this stock as a picks-and-shovel play on the National Football League. I stand behind that. This is not a pure play on sports betting. The company has several potential sources of revenue.
However, as I wrote in March 2022, one of those sources is sports betting. The company has signed a 10-year agreement with Rush Street Interactive that will make the Hall of Fame Village a premier sports betting location. And the company is developing its own mobile sports betting app.
All of this, plus the company’s affiliation with e-Sports leagues positions the company for long-term growth in the sports betting space. Still, I’ll end this where I started. HOFV stock is not a pure-play sports betting stock, but if you believe in a sum-of-its-parts story, it could offer compelling growth.
About Hall of Fame Resort & Entertainment
Hall of Fame Resort & Entertainment Company, a resort and entertainment company, doing business as the Pro Football Hall of Fame. It owns the DoubleTree by Hilton located in downtown Canton, and the Hall of Fame Village, which is a multi-use sports, entertainment, and media destination. The company is headquartered in Canton, Ohio.
Read More - Current Price
- $0.93
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
I'll admit the sports betting sector is moving forward a bit slower than expected. Currently, there are no retail sportsbook in 11 out of the 15 most populous cities in the United States. Six states have legislation pending that would legalize sports betting (Ohio will start in 2023). But that still leaves 14 states where sports betting is illegal.
However, not now, doesn't mean not ever. It's still likely that more states will continue to legalize sports betting. And if California and Texas legalize sports betting it would be a major lift for an industry that is already growing. For example, in 2021, the American Gaming Association cites that Americans wagered nearly $57 billion.
Sports betting stocks fall under the category of risk on assets. And like any risk on asset, it's likely to take some time for this sector to reach its full potential. I believe that investors have to wonder if the stocks are trading at a fair value based on the states that are currently open for sports betting.
If so, then these stocks will likely to have proportionate upside as more states legalize sports betting.
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