By Justin Spittler, editor, Casey Daily Dispatch
History was made in 2012.
Colorado, along with Washington, became the first states to legalize recreational marijuana.
For many people in Colorado, this was the best thing that ever happened. For others, it was a mistake. And those people will probably never see eye to eye.
Still, there’s one thing almost everyone can agree on… and that’s the economic benefits of marijuana legalization.
Marijuana legalization has generated billions of dollars for Colorado’s economy. It has created thousands of jobs. And it’s brought the state much needed tax revenue.
In fact, the state took in almost $70 million in taxes, licenses, and fees from the marijuana industry in 2014. And that figure has only gone up.
Last year, Colorado’s government collected $247 million off $1.5 billion in marijuana sales.
In short, Colorado has shown what can happen when a state legalizes marijuana. So, it wasn’t surprising that other states followed suit.
• Today, 30 states have legalized medical marijuana…
And nine states, plus Washington D.C., have legalized recreational marijuana.
Of course, regular readers know this already. I, along with Crisis Investing chief analyst Nick Giambruno, have been covering the legal marijuana industry for over a year.
But this isn’t another marijuana essay. No… I wrote this essay because Colorado’s on the verge of legalizing another black market. And just like with marijuana, this presents a huge opportunity for investors.
• I’m talking about sports betting…
Until recently, sports betting was illegal in every state except Nevada.
That changed in May, when the Supreme Court struck down a 26-year-old federal law that barred single-game gambling in every U.S. state, except Nevada.
Now, this doesn’t mean that the Supreme Court legalized sports betting nationwide. Instead, it gave each state the power to license, regulate, and tax sports betting within its borders.
Seven states—Rhode Island, New York, New Jersey, Delaware, Pennsylvania, West Virginia, and Mississippi—have since legalized sports betting. Another dozen or so states are considering doing the same.
In short, legal sports betting is sweeping the nation just like legal marijuana swept the nation.
And I have good reason to think Colorado will be the next domino to follow.
• Walker Stapleton wants to legalize sports betting…
Stapleton is a Republican gubernatorial candidate. And he’s pushing to legalize sports betting for a simple reason: He wants to tax the industry. Last month, Stapleton told a group of real estate investors…
Sports gambling is coming to Colorado… I think we should assess a tax on people placing a bet and use that to build up our roads and bridges.
Now, I have no idea if Stapleton will win the election. But it may not matter.
Colorado’s state legislature is expected to look at a sports betting bill in early 2019. And that bill is reportedly being “seriously considered.”
That’s why I think Colorado could legalize sports betting within the next year. But it certainly won’t be the last state to do so.
I say this because practically every U.S. state is in dire financial conditions. Just look at the public pension system. It’s a ticking bomb.
Everyone knows this. So, don’t be surprised if politicians try to buy themselves time by legalizing and taxing sports betting.
But this isn’t just an opportunity for desperate governments… It’s also a huge opportunity for savvy investors.
• A lot of money will flow into legitimate businesses if states legalize sports betting…
And I mean a lot…
The American Gaming Association estimates that the illegal market for sports betting brings in $150 billion every year. That puts it on par with the global marijuana industry.
But even that might be lowballing the market’s potential. In fact, Bank of America Merrill Lynch says the illegal market for sports betting is worth $200 billion.
Meanwhile, the research firm Eilers & Krejcik Gaming estimates that the legal sports betting market in the U.S. was worth around $270 million last year.
That means the legal market for sports betting would become 37 times bigger if legitimate businesses captured just 5% of the underground market.
And many of the companies poised to benefit from this are publicly traded.
• That means you can enjoy a share in their profits…
In other words, you can profit from the legalization of sports betting by speculating on casino and gambling stocks.
The easiest way to do this is with a fund like the VanEck Vectors Gaming ETF (BJK). This fund invests in 43 casino and gaming stocks. That makes it a relatively safe way to bet on this megatrend.
For even more upside, consider investing in small casino operators. Specifically, focus on operators located in states that recently legalized sports betting… or are likely to.
• These are exactly the kinds of companies that E.B. Tucker encourages his readers to buy in his Strategic Investor newsletter…
E.B. has been researching this opportunity for the past six months… And he’s found four specific companies primed to soar from this tidal wave of legal revenue.
And each of those stocks are “buys” at current prices. These picks are still flying under the radar today. If you’re not a Strategic Investor subscriber, you’ll want to sign up before these stocks take off. Click here to learn how you can access E.B.’s top names today.
October 8, 2018
P.S. I also encourage you to read this recent interview that I did with E.B. for more details on the big opportunity in legal sports betting.
Today, readers flood our inbox with their thoughts on Doug Casey’s recent interview on the Brett Kavanaugh scandal…
Really? You don’t think it makes a difference if somebody shows bad judgment as a teenager? Not every teenager did! Shouldn’t we have a bit higher standards when it comes to a Supreme Court Justice?
The clincher is your notion that 100% of Democrats are against him just because… is it not possible that they are against him because they don’t want to see freedom erode? Better yet, your allegation that Ford is lying for money, newsflash there are still people doing what’s right without personal gain.
You are right, there are better men out there, he is not Supreme Court material, for he has demonstrated that he cannot be impartial. Instead of crying he should have insisted on an unlimited FBI investigation, maybe he would be believable then.
I do agree with Doug’s point on this issue, that there must be better conservative judges out there than this. Why push a bad position? If it comes back to haunt the Republicans in the mid-terms, so be it.
I was on a jury that ruled the plaintiff had created a reality in her mind that was not in agreement with real facts. She was not lying and a polygraph would say she told the truth. Dr. Ford had a terrible experience but overcame problems and accomplished a lot in life by creating a history she could live with. BUT Kavanaugh has the real life knowledge of the truth, in my opinion! I have tried to talk to many news outlets to no avail.
On this one Doug Casey reflects a culture too long allowed and in critical need of change…society looking the other way and lacking in understanding of the individual and global emotional and economic impact on women and men—six in 10 and three in 10, respectively, who are victims of improper sexual behavior. It is a thousands of years old big deal!
Of course, Kavanaugh had to deny it. To me personally he was not believable, but Ford was. But the key point as to considering appointment to the U.S. Supreme Court is that his Senate testimony showed, despite and beyond the right to feel hurt: 1) he significantly lacks character, and he had to lie to cover his actual, proven excessive drinking/aggressive behavior, and 2) he is most certainly politically biased (note he spent a week with Trump before testifying and only those two persons in the whole country initially pronounced the unsolicited message that the situation was a Democratic party political hit).
Dear Mr. Casey, your crass disregard for Ms. Ford’s testimony, to describe it as deluded or lying, may say more about you than any other review of your expertise or character. To think that ANYONE would subject themselves to the rigors of Congressional review and eviscerating public scrutiny for political or monetary benefit is simply preposterous and relays a bias that most men in power fail to recognize. It was an act of conscience and a public service, an expression of violation and nothing more. Since Kavanaugh has responded with political bias and reaction unbefitting his desired appointment, he fails the qualification to be seated to the highest court in the land. Purporting white males to be victims is beneath your grade, or at least I thought it was.
Doug, I agree with most everything you said. I did not think Ford credible, and, I was swayed by the 200+ women supporters of his… some having known him since at least high school, and several he dated.
I fear you may be correct about him being a beltway hack, but I would support that over the rabid, leftist, mob-rule crowd. I am especially troubled by the loud, obnoxious protesters. They are getting more and more looney and dangerous and our media is a sick joke.
As a Second Amendment supporter, as well as a free speech advocate, I fear if the liberal extremists gain more power, any semblance of freedom will disappear if these busybodies have their way.
Ford brought up the accusations for the first time years ago. I think you are wrong!
I thought you were an intelligent man, but supporting Kavanaugh and Trump says otherwise. Trump is an embarrassment to America. Other nations are laughing at our joke of a President. I’m sorry this is your opinion, but not mine.
I couldn’t disagree with Doug’s comments more. Overlooking Kavanaugh’s obvious biases and poor temperament are intolerable.
Doug’s opinions, whether in line with mine, or directly opposite, help me to see that the truth oftentimes lies in between. His voice is a voice of sanity.
Thank you for a reasonable perspective. The Department of Justice should seek to prosecute all of them, including the Democratic Senators involved in releasing the Ford letter and colluding with her.
I cannot believe that Doug Casey made these statements. Last straw. He is as deluded as those whose character he impugned. One complete chucklehead you are, Doug.
Spoken like another clueless male! Let’s hope your daughter doesn’t meet someone like Kavanaugh…
Who the hell is Doug Casey to say Kavanaugh should not be confirmed? Casey is just another big mouth who has been lucky enough to be in the right places at the right time to come up with big bucks. It doesn’t make him more intelligent about the qualifications of a person. Seems to me he is just starting more crap to have people talk about him! His whole statement was nothing but stuff already said dozens of times by other people who are just as smart or smarter than he is. Don’t pay any attention to what Casey says. He’s another loud mouth whose head has gotten way too big. Yes, you can print this…
I can only hope that more people have the ability to see beyond the media hype and see the truth. We have all been hijacked and nobody seems to care. Thank you for speaking the reality of things.
And as always, if you have any questions or suggestions for the Dispatch, send them to us right here.
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