Florida legalized mobile sports betting in 2021, but legal disputes put the activity on hold. Now, the US Supreme Court has cleared online sports betting in the state, potentially creating new opportunities for companies in the sector.
One industry analyst, Ryan Sigdahl of Craig-Hallum Capital Group, suggests that online sports betting in Florida may benefit sports data, solutions, and technology providers. While the Seminole Tribe has exclusive rights over mobile betting, this could open up opportunities for companies like Sportradar and Genius Sports.
Craig-Hallum has a Buy rating for Genius Sports with a price target of $11, and a buy rating on Sportradar with a price target of $18. Sigdahl believes that these companies could play a crucial role in providing sports data for the Seminole Tribe as legal mobile betting gains traction in the state.
Florida is a major sports betting market, with a population of approximately 7% of the total population of the country. The state has a passionate sports fan base, being home to three NFL teams, two NBA teams, and two MLB teams.
Nearly 40 US states offer some form of legal sports betting, and the expansion of the activity was made possible by the 2018 repeal of the Professional and Amateur Sports Protection Act by the US Supreme Court. According to data from the American Gaming Association, there are currently five US states without legislation on sports betting, while legislation in seven states has stalled.