Online gaming stocks seen ready to score as NFL kicks off

Macquarie expects more acquisitions following recent deals headlined by Penn National-Score Media and DraftKings- Golden Nugget Online acquisition
The reigning Super Bowl champion Tampa Bay Buccaneers will face the Dallas Cowboys on Thursday in the 2021 NFL Kickoff Game set for 8:20 PM ET, with Tom Brady's team a 7.5-point favorite in the latest odds from Caesars Sportsbook. Macquarie analyst Chad Beynon sees tonight's kickoff as a "major catalyst" for the online gaming group and recommends investors own the group heading into the start of the new NFL season.

MAJOR CATALYST: Ahead of the Buccaneers vs. Cowboys game, Macquarie analyst Chad Beynon told investors that he sees Thursday night's kickoff of the National Football League season as a "major catalyst" for the online gaming group. Internet gaming names have rallied during the last month, and this should continue as investors become more comfortable with upcoming revenue estimates, Beynon contended. He thinks total addressable market is the most important driver of the group and that new features such as in-play betting, microbetting and same game parleys "will be a positive surprise." The analyst pointed out that other key issues to monitor are the performance of in-house versus third-party platforms and market share. He estimates that football accounts for 35%-40% of the annual revenues, although most of this comes in the fourth quarter.

Regarding M&A, Beynon expects more acquisitions following recent deals headlines by the Penn National Gaming (PENN)- Score Media (SCR) and DraftKings (DKNG)-Golden Nugget Online (GNOG) acquisition. MGM (MGM) has previously voiced a desire to consolidate BetMGM and a Caesars William Hill International divesture appears imminent, the analyst contended. Beynon has Outperform ratings on International Game Technology (IGT), Full House Resorts (FLL), Gan Limited (GAN), Century Casinos (CNTY), Inspired Entertainment (INSE), Rush Street Interactive (RSI), Caesars (CZR), MGM Resorts and DraftKings. He recommends owning the group heading into the NFL season catalyst.
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