Americans wagered twice as much on sports gambling last year as Amazon.com Inc. (NASDAQ:AMZN) generated in net income.

Pompliano Highlights Sports Betting Growth

“Americans wagered 2x more money on sports gambling last year than Amazon made in net income,” investor Anthony Pompliano said in a post on X.

“That is insane,” he added, comparing the scale of U.S. sports betting activity with the earnings generated by one of the world’s largest companies.

Pompliano cited data from Charlie Bilello, chief market strategist at Creative Planning, who said Americans wagered more than $165 billion on sports last year.

Sports Betting Stocks In Focus

DraftKings Inc (NASDAQ:DKNG) and Flutter Entertainment plc (NYSE:FLUT), through its FanDuel brand, are the largest online sportsbook operators in the U.S., while MGM Resorts International (NYSE:MGM) and Caesars Entertainment Inc (NASDAQ:CZR) also operate sportsbook businesses.

The industry has expanded rapidly since the U.S. Supreme Court struck down the federal ban on sports betting in 2018, allowing states to legalize wagering.

Despite continued growth in sports betting activity, several listed sportsbook operators have underperformed this year.

Shares of DraftKings have fallen 27.93% year to date and 40.08% over the past year, while Flutter has declined 52.27% and 63.54%, respectively.

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Sports Betting ETFs

Exchange-traded funds also provide exposure to the sports betting industry. Roundhill Sports Betting & iGaming ETF (NYSE:BETZ) holds companies including Flutter Entertainment, DraftKings and MGM Resorts. The ETF has declined 20.93% over the past year and is down 10.23% year to date.

The Defiance Daily Target 2X Long DKNG ETF (NASDAQ:DKNX), meanwhile, offers leveraged exposure tied to DraftKings’ daily performance and has fallen 60.03% so far this year.

Price Action: On Friday, DraftKings closed 11.26% higher at $25.70, and fell 0.74% in extended trading.

Benzinga edge rankings indicate DKNG has a Momentum score in the 11th percentile and a Growth score in the 31st percentile.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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