Penn National (PENN) saw a big move last session, as its shares jumped more than 9% on the day, amid huge volumes.
Despite a tough first quarter, casino operators continue to move higher on expectations for a brighter future.
Several sports seasons have been canceled because of the coronavirus -- but these three sports stocks are still poised for a bull run.
Wall Street seems to think better days lie ahead for these casino operators; Red Rock Resorts' earnings call suggests that may be true.
Casino stocks were some of the hardest hit stocks in the market during the coronavirus-driven market sell-off. Casinos are finally starting to open back up in parts of the U.S., but it may still be a long time before things are anywhere close to normal in the gambling world.Safe Bets?Bank of America analyst Shaun Kelley recently took a closer look at U.S. regional casino operators to identify where it's safe for investors to start dipping their toes into the space. Kelley said consumer spending during the economic recovery will vary state-by-state, and different regions of the country will likely perform better for investors.Bank of America said spending in the Northeast will likely lag other regions, while spending in the Midwest, South and West has been relatively strong in recent weeks.At the same time, jobless claims are materially lower in the Midwest, while they are relatively high in the West, especially in casino-heavy Nevada.See Also: Boyd Gaming Vs. Penn National: Which Stock Is The Better Casino Rebound Trade?How To Play ItGiven the Midwest is the only region to outperform the national average in both consumer spending and job loss, Kelley said regional casino stocks Penn National Gaming, Inc (NASDAQ: PENN), Eldorado Resorts Inc (NASDAQ: ERI) and Boyd Gaming Corporation (NYSE: BYD) could be the big winners.On the other hand, Red Rock Resorts Inc (NASDAQ: RRR) has high exposure to off-strip casinos in Nevada and could lag other operators given the high unemployment levels."Historically, employment has been more correlated with off-Strip gaming revenue than consumer indicators and we believe could better reflect the long-term health of NV's tourism-heavy economy," Kelley wrote.Benzinga's TakeJust because U.S. casinos are starting to open back up doesn't mean things will be back to normal anytime soon. Macau casinos began opening up back in March, but April gross gaming revenue was still down 97%.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Latest Ratings for BYD DateFirmActionFromTo May 2020CIBCMaintainsOutperformer Apr 2020SunTrust Robinson HumphreyMaintainsBuy Apr 2020JP MorganMaintainsOverweight View More Analyst Ratings for BYD View the Latest Analyst Ratings See more from Benzinga * The Road To Recovery For Las Vegas Casino Stocks * Las Vegas Room Rates Plummet As Casino Stocks Remain In Limbo(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Covid-19 caused tremendous human tragedy and it also decimated millions of businesses worldwide. The quarantine was especially harsh on the hospitality and entertainment industries. Many gaming stocks like Penn National Gaming (NASDAQ:PENN) lost 75% or more of their value. But this not their first time facing difficulties, so management teams are smart enough to handle the recovery. PENN stock has already rallied 450% off the worst of the March 20 low, but not before losing 92% of its stock price in this fall from grace.Source: Jeffrey J Coleman / Shutterstock.com This happened in only four weeks, so Wall Street completely panicked. Today we evaluate the upside opportunity as the world goes back to work.The bounce off the bottom clearly proves that there still is an appetite to buy these stocks, but the easy path may be already over. When a stock falls far then recovers halfway back, it usually hits resistance. PENN stock is at this juncture now so I expect it to face some sellers near $20 per share. The good news is that the bulls have been setting higher lows. All they need is a little dip to build better conviction so they can battle the bears above.InvestorPlace - Stock Market News, Stock Advice & Trading Tips So Far so Good for PENN StockSource: Charts by TradingView Last week, management reported earnings and investors liked what they saw. It also helped that they raised $600 million from equity and bond issues. They are ready to face the next few months with a stronger balance sheet, and they will need every bit of it. More on this later. * 20 Stocks to Buy If You're Still Betting on America to Thrive So far, the positive reaction around the earnings has held, and investors are testing the breakout neckline for footing. As long as PENN stock stays above $14 per share then the bulls retain control. This way they can maintain the higher-low trend as they recover more levels that they lost in the last two months.One very important line is at $20 per share, as it marked the fail from Monday. But this has been a battleground spot since January of 2015 (see chart). I bet that if they break through they can rally to $30 per share. There will be resistances at the $23, $25 and $28. When a stock approaches a level that has this much history it is normal that it fails at its first breakout effort. It may even take a few tries.Eventually the bulls will prevail, but they are not likely to recover the highs. They say that "somewhere in the middle lies the truth" and in this case the rally to $40 and the fall to $4 were both outlier extremes. Investors need to be realistic with their bullish expectations. Those who own the stock can probably sit through the rest of this virus crisis as states continue to reopen. But those looking for an easy rally need to temper their enthusiasm. Because even if we reopen today, the new normal is not back to what was normal. There Are Big Potential Problems ComingInvestors would do well to book profits near $22 and $25 per share. I expect the rally to take a hit from a big dose of reality. There is a lot of talk of restricting capacities, which will severely impact operations. Penn National will not be able to pack its floors like before, so there will be major downside adjustments. MGM Resorts (NYSE:MGM) this week announced that it is reopening its Las Vegas facilities at only 25% capacity.While some income is better than none, it's a far cry from normal. There is a breakeven point and I doubt that it is below 50%. Selling only a quarter of the rooms is not likely enough to pay for the costs to run it.Investors have to accept that the regulatory risk is real because governments in North America may force similar restriction on everyone. Penn National may need to forever modify their business model. They will probably raise prices and renegotiate contracts from rents to advertising budgets. I can't imagine that their convention business will relaunch anytime soon. This will be a very messy process so the hard work is just starting.So far Wall street is giving them the benefit of the doubt because they are working on alliances like the one with Barstool Sports. But they are not out of the woods. Options Offer a Better Twist on the Buy and HoldOne way to capitalize on the high levels of volatility in the markets is to use options -- sell puts or put spreads below support. This creates the opportunity to profit from the strength in PENN without needing rallies.For example if an investor is looking to buy the stock at $18 per share, they can alternatively sell the $10 January put and collect $2.20 per contract today. As long as the stock stays above $10 they are complete winners with no money out of pocket. Otherwise they own the shares and their break-even is $7.80.It is unfair to judge the fundamental because, as we said, there will be a new normal. I personally hope that the authorities do not force Covid-19 changes on an ongoing basis because the negative repercussions will be hindrances forever. It is important to note that the government is spending trillions of dollars to spur the economy, but I am a skeptic that it will have the impact they hope. The stimulus check are not going to help PENN because there's no incentive to socialize. In fact there is the exact opposite of it, so I fail to see how the bailout is going to pack the casino or racetrack floors.Cautious optimism is an appropriate term in this case, and the best way to actually implement that is using the options markets.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post The Rally In Penn National Gaming Has Another 35% Potential appeared first on InvestorPlace.
Casino giant Caesars’ mountains of debt raises uncertainty about its pending merger with Eldorado (ERI) amid the pandemic, says Dan Wasiolek, senior equity analyst at Morningstar.
Penn National Gaming, Inc. (NASDAQ: PENN) ("Penn National" or the "Company") announced today that on May 18, 2020, the Company successfully reopened its five casino properties in Louisiana. The Company also announced that it plans to reopen its five casinos in Mississippi on Thursday, May 21, 2020, pending final regulatory approval. The reopened facilities represent over 25% of the Company’s portfolio of regional casino assets.
Near the end of the trading day, shares were up about 9% from the previous day's close. Penn National today closed on the sale of $300 million in common stock and $300 million of 2.75% convertible senior notes due in 2026. After the funding, Penn National has $1.3 billion in cash and equivalents on the balance sheet and that could increase to $1.4 billion if underwriters exercise their option to acquire $90 million in additional stock and bonds.
The hospitality and leisure sector has been hit hard by the novel coronavirus outbreak. But as economies start to reopen, the space is a worthwhile place to look for bargains. Penn National Gaming (NASDAQ:PENN) is one of the names in the sector that could be worth buying as the firm works to prepare a social-distancing gambler's paradise. PENN stock has lost more than 50% of its value since February, making now a good time to size up the firm's future prospects.It's worth noting that Penn National comes with a fair bit of risk. The firm depends heavily on disposable income, something people may not have much of if the coronavirus continues to wreak havoc on the labor market. Plus, Penn gets the majority of its revenue from in-person gamblers at its racetracks; if the firm's other bets aren't successful and large-scale gatherings continues to be limited, its shares could suffer. The Evolution of PENN StockOnce upon a time, buying Penn National stock was simply a bet on small-time, local gambling. Since then, it has grown into something more, a process that's been pushed forward by the rise of the coronavirus. InvestorPlace - Stock Market News, Stock Advice & Trading TipsNow Penn National spans a variety of geographic locations, something the firm believes makes it stand out from its peers like Las Vegas Sands (NYSE:LVS) that focus primarily on Las Vegas. By contrast, Penn manages just a handful of Vegas properties while the rest of its casinos and racetracks are found in cities from Houston to Detroit. But the company has also been working on its online game. Its CEO, Jay Snowden, has been touting its online betting assets since the company's properties were closed down. During the firm's most recent earnings call, Snowden said Penn's online gaming business is gaining traction.In line with the push toward online gambling, Penn has placed an extra focus on sports betting, which could prove to be the company's saving grace if its casinos remain closed throughout the summer; for now more than half of the states that Penn is operating in permit sports betting. Online Gambling and Penn NationalPENN stock hasn't recovered much because reopening casinos amid a pandemic is a tall order. But investors who can stomach the volatility and have a longer timeline should focus on Penn National's potential.For one, there's a good chance online gambling's popularity will surge as people look for ways to entertain themselves. But more importantly, many states are likely to start relaxing their online gambling laws instead of reopening traditional casinos. Penn's reputation as a local gambling spot will give the firm some credibility in the e-gaming universe and could help boost the company's profile when sports betting comes online. And speaking of reputation, the company's purchase of Barstool Sports will add to its appeal as an online sports betting hub.Of course, with sports on hold and gambling laws still a question mark, it's worth noting that there are a few aspects of that scenario that are far from certain.However, if the e-gaming landscape does play out as Penn is hoping and the company is able to secure a spot as one of the top sports betting providers in the U.S., that will be a powerful tailwind once the casinos do reopen. The Bottom Line on Penn NationalThere's no denying that it's risky to buy Penn stock right now; a lot has to fall into place for that bet to pay off down the line. But there's also a great deal to like about the company's unique operating model.And as InvestorPlace columnist Dana Blankenhorn pointed out ahead of Penn's earnings, the stock has been trading in tandem with other gambling plays like Las Vegas Sands. Investors have to ask themselves whether or not PENN stock is much different. I believe it is, especially in the midst of a pandemic. Penn's geographical diversity is positive because some of its properties will likely open sooner than others. What's more, those that do open will have customers nearby, whereas Las Vegas' casinos will need their customers to travel to them. So I'll concede that buying the shares of a casino operator while the coronavirus pandemic is ongoing isn't a safe bet. But Penn looks like the best play in the industry for now. Laura Hoy has a Finance degree from Duquesne University and has been writing about financial markets for the past 8 years. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN. As of this writing, she did not own any of the aforementioned stocks. The post Penn National Stock Is a Risky Bet, But Itas the Best Gambling Name Right Now appeared first on InvestorPlace.
Gaming industry boosted by the casinos reopening plan after the coronavirus-induced shutdowns.
Q1 2020 Penn National Gaming Inc Earnings Call
Penn National Gaming, Inc. (PENN: Nasdaq) ("Penn National" or the "Company") today announced that the underwriters of the Company’s recently completed public offering of common stock, par value $0.01 per share (the "Common Stock") and 2.75% Convertible Senior Notes due 2026 (the "Convertible Notes") have exercised their options to acquire additional shares of Common Stock and Convertible Notes, together valued at approximately $75 million. Combined with the previously announced public offering, this amount equates to an approximately $675 million dollar capital raise and is the first ever U.S. dual tranche equity/convert offering for a gaming operator.
Penn National Gaming, Inc. (PENN: Nasdaq) ("Penn National" or the "Company") today announced that it has closed on its underwritten public offering of $300 million of common shares (the "Common Stock Offering") and $300 million aggregate principal amount of 2.75% Convertible Senior Notes due 2026 (the "Convertible Notes" and such offering, the "Convertible Notes Offering").
On CNBC's "Mad Money Lightning Round," Jim Cramer said Newell Brands Inc (NASDAQ: NWL) is not high quality and it doesn't have a great balance sheet.Instead of Caesars Entertainment Corporation (NASDAQ: CZR), Cramer would buy Penn National Gaming, Inc (NASDAQ: PENN).Schrodinger Inc (NASDAQ: SDGR) is a very, very smart company and a great spec, said Cramer. He likes the stock.See Also: Canopy Growth Set To Become Cannabis Sector Leader, Says BofACramer said NortonLifeLock Inc (NASDAQ: NLOK) is an undervalued stock and it should be bought. He likes it very much.Canopy Growth Corp (NYSE: CGC) is the most legit of all the cannabis stocks, said Cramer. He added that it has a great management.Cramer is deeply committed to Beyond Meat Inc (NASDAQ: BYND) and its CEO. He thinks the stock is terrific, but it's also a wild trader.Pure Storage Inc (NYSE: PSTG) worked its way back and it is pretty good, said Cramer.See more from Benzinga * Fast Money Traders Share Their Thoughts On Beyond Meat * Cramer Comments On IHS Markit Ltd, Pinterest And More * Cramer Shares His Thoughts On MGM Resorts, Starbucks And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
[Editor's Note: "Even as Penn National Gaming Stock Rebounds, Consider Other Casino Plays" was originally published April 17, 2020. It is regularly updated to include the most relevant information.]Source: Jeffrey J Coleman / Shutterstock.com Should you buy Penn National Gaming (NASDAQ:PENN) stock? Shares have skyrocketed in recent days. With many states allowing casinos to reopen after the novel coronavirus shutdowns, investors are betting on a quick rebound. But, who's to say we'll see a V-shaped recovery at the gaming tables?Casino stocks offer high risk, but high potential returns. Yet, Penn National may not be your best option. Firstly, the company mostly leases the real estate under its casinos. This may have been a smart financial engineering move. But it leaves them fewer liquidity options relative to peers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecondly, shares trade at a premium to stronger rivals like Las Vegas Sands (NYSE:LVS) and MGM Resorts (NYSE:MGM). This could make them better ways to play a potential industry rebound, as might VanEck Vectors Gaming ETF (NASDAQ:BJK), which holds all four names in its 42-stock exchange-traded fund portfolio.Also, who knows if the gaming industry will fully recover once the pandemic fades? Given the high-fixed costs of the gaming industry, even a 20% decline in revenue could mean bad news. Especially for weaker names like Penn National.Considering these factors, it may be better to skip out on this "too hot to touch" regional casino play. Let's dive in, and see why PENN stock isn't your "best bet." Surviving CoronavirusCan Penn National survive the coronavirus? When the pandemic first hit America, Wall Street's answer was a resounding "no" as shares fell from above $39 in February to as low as $3.75 in March. Yet, with many states allowing casinos to reopen, shares have rebounded nearly eight-fold, and now trade just under $30 per share.Will shares continue to climb? It's possible. As this Seeking Alpha contributor recently wrote, half of the company's casinos are set to reopen by May 31. This includes properties in Louisiana, Missouri, and Mississippi. Yet, these states are imposing strict social distancing guidelines. This could mean things won't return to 100% for quite some time.But, there's another big risk specific to PENN stock. The company leases, not owns, most of its properties. In fact, the company was a pioneer in the casino REIT (real estate investment trust) trend.In 2013, the company spun off most of its real estate as the first casino REIT, Gaming and Leisure Properties (NASDAQ:GLPI). This transaction allowed them to realize the underlying value of its property. But while this boosted valuation, it left them exposed to heavy lease liabilities.As our own Matt McCall wrote on April 3, Penn National carries $8.5 billion in lease liabilities on its balance sheet. In 2020 alone, the company must make $900 million in lease payments. This wouldn't be a problem if their casinos were generating cash flow. But how about now, when its casinos are sitting idle?Yet, the stock's current valuation doesn't reflect this weakness. In fact, shares now trade at a premium to peers. Richly Priced Relative to RiskThe recent rally in PENN Stock has made shares richly priced. The company's enterprise value/EBITDA (EV/EBITDA) ratio now stands at 14.8. That's a premium to the EBITDA multiples of Las Vegas Sands (11.9) and MGM (12.9).Sure, there may be good reason for this valuation discrepancy. Las Vegas casinos have yet to reopen. This has a larger affect on LVS and MGM stock, as Penn's Vegas footprint is much smaller. But, despite regional casinos opening sooner than resort properties in Vegas, Penn National was on shakier ground financially coming into the pandemic.Granted, Penn's liquidity situation has improved in recent weeks. With the recent $675m equity and convertible debt offering, the company has plenty of capital to ride out the storm.Also, many of their liabilities are leases with GLPI, which could provide the company some rent relief. The spun-off REIT entity has already helped out its former parent, agreeing to buy several properties in exchange for $337.5 million in rent credits.To top it all off, the company may have a growth catalyst in motion that helps them recover even sooner than anticipated. As InvestorPlace's Ian Cooper wrote May 22, the company's investment in Barstool Sports could help them grow their budding sports wagering business. PENN Stock Is Not Your "Best Bet"Upcoming casino reopenings, along with excitement over the company's sports betting catalyst, have led investors to bid up Penn National shares as of late. Should you join in, as it seems the stock could head back to past highs pretty soon?Not so fast! As I highlighted last month, other opportunities could offer a better risk/return proposition. PENN stock? Not so much. In short, this isn't your "best bet" on a casino industry rebound.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Even as Penn National Gaming Stock Rebounds, Consider Other Casino Plays appeared first on InvestorPlace.
Penn National (PENN) is set to resume operations in properties at Mississippi while maintaining comprehensive protocols to contain the spread of coronavirus.
Penn National Gaming is rallying today but can we expect much more from the operators of casinos and racetracks? Let's check their charts. In this daily bar chart of PENN, below, we can see that prices sprinted higher this month.
Gambling companies like Penn National Gaming (NASDAQ:PENN) stock have been left in ruins, with Lady Luck nowhere to be found.Source: Casimiro PT / Shutterstock.com In fact, thanks to the novel coronavirus, casino stocks like PENN hemorrhaged cash instead of raking it in. MGM Resorts (NYSE:MGM) was reportedly losing up to $14.4 million a day. Boyd Gaming (NYSE:BYD) lost up to $3.2 million a day, says Best Casinos' contributor James Murray.Long-term investors didn't fare much better. Since the chaos began, Las Vegas Sands (NYSE:LVS) slipped from a high of $70 to a current price of about $48. Caesars Entertainment (NASDAQ:CZR) fell from $14.60 to a current price of about $11. Boyd Gaming fell from $35 to near $20.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Excellent Penny Stocks Ready to RoarBut with economies starting to reopen, now may be the perfect time to dig for diamonds in the rough. One of the stocks to consider is Penn National, whose stock recovered from low of $3.75 to nearly $30 per share. If the U.S. economy can successfully reopen, PENN stock could revisit highs of nearly $40. Long-Term Growth is IntactLike most casinos, Penn National Gaming had a tough first quarter, said President and CEO Jay Snowden."Penn National saw a phenomenal start to 2020, with record results in January and February. Our Company was performing well ahead of guidance in every segment, driven in large part by the introduction of retail sports betting at several properties, which has served as a catalyst for both gaming and non-gaming revenue. We also saw a strong positive reaction, including our stock price hitting an all-time high, following the announcement of our strategic investment in Barstool Sports."Unfortunately, growth was cut short in March 2020 thanks to the coronavirus, which required closure. As a result, first-quarter revenues fell $166.5 million year over year to $1.12 billion. Penn National Gaming also saw a loss of $608.6 million, as compared to a profit of $41 million in the first quarter of 2019.But as Snowden added, "The company's long-term growth strategy remains intact" as the company moves forward with projects like its Barstool Sports app. Barstool Sports App Could Be Worth MillionsWith torpedoed results, Penn National Gaming took a 36% stake in Barstool Sports for $163 million in cash and stock to help grow its sports betting and entertainment offering. By 2023, the company could pay another $62 million to increase its stake to 50%.This is great news for Penn National Gaming for two reasons. One, at the moment, Barstool has an audience of 66 million and growing. Better still, Barstool views on social media have already soared 50% since April 2020, a sign of an engaged audience."Penn will have its Barstool (sports betting) app running by the third quarter," said Macquarie's Chad Beynon, "and we believe the app (and the Barstool) database can be worth $10 to $25 per share of equity over time."In addition, we have to realize that legal sports betting is a big multibillion-dollar business. In fact, according to the American Gaming Association's Research on Sports Betting, "Our research showed sports betting, if available online and reasonably taxed, could have an impact of $41.2 billion annually."Plus, nearly 40% of U.S. adults are currently betting on sports. Nevada Approves Casino Reopening PlansBoosting the sector even more was the Nevada Gaming Commission approving guidelines to reopen Las Vegas again soon.Under new guidelines, casinos will be limited to 50% occupancy. Conventions will be limited to 250 people. Restaurants will have limited seating and allow for appropriate distancing. Seating at table games will be limited as well. With blackjack, for example, seating will be limited to three players. Chairs will only be permitted at every other slot machine, too.While there's not a defined timeline for reopening, at least they'll reopen sooner than later.While it won't be business as usual for quite some time, we are beginning to see big signs of recovery. From here, I strongly believe now is the best time to buy down-but-not-out casino stocks like Penn National Gaming.Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 Reasons to Buy Penn National Gaming Stock appeared first on InvestorPlace.
After months without live sports, it looks as though America's favorite pastimes are on the cusp of returning. Reports indicate the MLB is on pace to return sooner rather than later, while the NHL and NBA have also submitted plans to resume their playoffs this summer.Financially, the resurgence of players in arenas may mean the resurgence of players in the stock market as well. Here are four stocks that may be poised for a breakout with the return of live sports.DraftKingsDraftKings Inc (NASDAQ: DKNG) is new to the market, debuting in early April at around $19. Since then, it's climbed over 70% to $33 a share.Much of the hype surrounding DraftKings has to do with continuous pro-gambling legislation being pushed throughout the country. Given the gambling industry's potentially massive contribution to the government, more and more states are entertaining the possibility of legalizing it.More good news for the online fantasy and gambling app is the new trend for people to gamble on non-sporting events, such as the outcome of TV shows like "The Bachelor."Chris Camillo said DraftKings' potential comes as a result of the exponential growth in legality and popularity of online sports gambling.> "I think you can make a case that most states are going to have legalized sports books in the next five, six, seven years. So this is a movement. This is a major, major movement."Prior to the absence of sports, people were betting on games more than ever. The hiatus likely created an immense desire to get back to the action.Penn National Gaming Penn National Gaming (NASDAQ: PENN) is one of the most interesting stocks in the gaming and entertainment industry.Penn operates both brick-and-mortar and online gambling to a plethora of users. It owns 41 facilities, which comprise 50,500 gaming machines, 1,300 table games and 8,800 hotel rooms. Perhaps the most exciting element of Penn National is its recently-inked partnership with Barstool Sports.Barstool Sports has been a leading sports and men's lifestyle blog and podcasting network over the past few years.The agreement between Penn and Barstool paves the way for Penn to be the operator of a Barstool Sports gambling app. Given Barstool's incredible reach and audience (three top 60 podcasts in the U.S.), the app will surely explode on the scene."Penn's got the bigger growth in the future (as compared to other gaming companies on the market)," Jordan Mclain said on the "Dumb Money LIVE" show. "I think they've got a brand they can capitalize on."See Also: Why Penn National And Boyd Could Outperform As US Casinos ReopenGanGan Ltd (NASDAQ: GAN) is an extremely under-the-radar stock that also operates in the sports gaming space. It IPO'd on May 5 at just over $10. The small-cap stock has since risen above the $15 handle, representing about 50% returns in its first month on the market.Gan's core business centers around a subscription revenue model. Its software allows it to take a piece of the action on every bet or gamble for the gaming companies that it works for. Its most notable client is likely FanDuel, an international competitor to DraftKings.One of the company's more notable elements is that it owns a patent on the ability for a casino that has an offline brick-and-mortar presence with an offline loyalty program to merge that with an online loyalty program.In fact, it won a 2018 court case in which it sued for the wrongful usage of this patent, which has further solidified its viability and credibility.According to Camillo, Gan has the potential to be in the right place at the right time with the return of sports."I see Gan as an asymmetric trade on the imminent growth of legalized app-based sports and casino wagering in the U.S.," Camillo said.> "While most investors in this space are focused on DraftKings, FanDuel, MGM, and the soon to be Barstool Sportsbook by Penn National -- GAN's platform software and services solution along with their leadership experience in the sector position them to come out as the real winner in what is likely to grow into a fragmented market of state-licensed casino and sportsbook brands that are equally technology and process deficient "Gan will be able to leverage this patent to work with casinos in developing the aforementioned online loyalty programs, which could be a huge boost. Investors seem to be taking notice of this, along with the general rise of the gambling industry in general, as good signs for Gan.Walt Disney CoDisney (NYSE: DIS), like most of the market, suffered a significant drop in share valuation as a result of the coronavirus pandemic. The stock has dropped roughly 15% in price since the end of February, when it hovered just over the $140 handle.With the resurgence of sports back on the scene in the coming weeks and months, it's plausible to expect the viewership of ESPN to surge. The channel owns rights to multiple NBA and MLB games per week.ESPN's typical programming, which comprises mostly talk shows, will finally be able to recap highlights and statistics from the previous day once again after months of having to cover general topics and trends, such as the NFL's new collective bargaining agreement.Camillo mentioned on the "Dumb Money LIVE" show that Disney looks like a safe play with the return of sports."It's gonna be a net positive for Disney. It's kind of undebatable...I'm comfortable with my Disney position for the long term," he said.See more from Benzinga * These 10 Stocks Have Surged During The Coronavirus Pandemic(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.