Investors looking for the best place to park some money need to pay attention to the latest from Morgan Stanley. Analysts with the financial firm have put together their preferences for the industries with the strongest growth potential in the U.S. as the coronavirus recovery begins and have given significant support to both online gaming and sportsbooks. This isn’t too surprising, given the fact that, when you’re at the bottom, the only way to go is up.
According to the financial brokerage giant, “The impacts of Covid-19 on macro trends and individual consumer behaviors will affect investing fundamentals for years to come.” As a result, Morgan Stanley has identified 50 “mega-trends” that are now receiving more attention as a result of the coronavirus pandemic and the initial phases of the recovery. Leading the way are gambling services, due to several factors.
There had already been a feeling at Morgan Stanley that sports gambling was going to be big business in the U.S. Last November, before COVID-19 came in, it predicted that the industry would grow to be worth around $8 billion by 2025. As a result of the global pandemic and the massive loss in revenue incurred by many states across the U.S., there will now almost certainly be a greater push for legalized sports gambling across the country, possibly even at the federal level. That could push the $8-billion figure much higher. The fact that DraftKings increased its value right in the middle of the pandemic speaks volumes.
As casinos in the U.S. were forced to halt operations due to public lockdowns, stocks began to plummet. However, this has been nothing more than a temporary glitch that won’t last forever. Casino executives know this, which is why many decided to take shares in lieu of cash as gambling operators tightened their belts. Despite current coronavirus hotspots appearing in the U.S., those investors who can part with their money would be wise to invest in casino stocks and then walk away, knowing that, within a decade, the return will be astronomical.