A new ETF that tracks Sports Betting and iGaming companies is being launched in London next month on the HANetf platform.
BETZ (LON:BETZ) is Europe’s first sports betting focused ETF and will track the Solactive Fischer Sports Betting and iGaming Index, which achieved back-tested net total returns of 121% over the past twelve months.
Online gambling had until recently largely been illegal in the US, however, recent regulatory changes have allowed individual US states to legalise sports betting and iGaming (online activities that include poker and online casinos games such as blackjack, slots and fantasy sports).
Goldman Sachs recently forecast the US sports betting and iGaming market would expand by 23 times to US$53bn by 2033, with high-profit margins, low capital expenditures leading to strong free cash flow (FCF) generation and high returns on investment (ROI) for the industry.
Aaron Fischer, co-founder of BETZ, said “Having witnessed a huge uptick in the take-up of sports betting and iGaming boosted by favourable regulatory changes, we feel that now is the perfect time to launch our Sports Betting and iGaming UCITS ETF.
“The growth forecasts for this sector are hugely promising and we are excited to offer European investors the opportunity to gain exposure to this exciting and evolving market.”
The index includes Caesars Entertainment, DraftKings, Flutter, Entain, MGM Resorts International and PointsBet, he said, while the ETF will also include “picks and shovels” service providers such as Evolution Gaming, IGT, Playtech and Kambi.
Hector McNeil co-Founder and co-CEO at HANetf added: “We’re delighted to finally offer the European investor a seat at the Sports Betting and iGaming table, having watched from the side-lines as their North American counterparts have taken advantage of this exciting growth market.”