There Are Other Investment Opportunities Besides AI Stocks. World Cup Approach Catalyzes Gaming Stock Gains, MGM Rises Over 14%

Tradingkey - On June 1, the three major U.S. stock indices showed mixed performance, but sector-level divergence intensified further. NVIDIA ( NVDA) CEO Jensen Huang announced at the GTC conference that the company's next-generation AI computing platform, Vera Rubin, has entered full mass production. This news further catalyzed market investment enthusiasm for the AI software and AI PC sectors.

Notably, there are other structural opportunities worth watching in the current market, as the sports betting sector as a whole staged a strong rally.

At the time of writing, MGM Resorts International ( MGM) rose 14.13%, DraftKings ( DKNG) rose 7.25%, Penn Entertainment ( PENN) rose 5.95%, Flutter Entertainment ( FLUT) rose 4.07%.

It is reported that the 2026 FIFA World Cup is scheduled to be held from June 11 to July 19 this year across the United States, Canada, and Mexico. This marks the first time in history that the tournament will be co-hosted by three nations and the fourth time North America has hosted the event.

According to a report by sports data provider Sportradar, the 2026 FIFA World Cup will serve as a historic growth inflection point for the U.S. sports betting industry.

The agency stated that the rapid popularization of soccer culture in the U.S., combined with the high traffic and strong real-time interaction inherent in the World Cup, will bring unprecedented user growth opportunities to major betting platforms.

The agency further noted that 62% of U.S. soccer fans are expected to place bets on matches, covering all market segments from casual players to high-net-worth individuals. More importantly, 29% of American adults plan to place their first-ever sports bet during this World Cup; as this group generally lacks established platform loyalty, they will become the core incremental users contested by major betting companies.

Meanwhile, more than 50% of existing soccer bettors indicated they would increase their wager amounts, frequency, and participation in live betting during the World Cup, which will significantly enhance average revenue per user and customer lifetime value.

Sportradar listed core beneficiaries poised to profit from this World Cup, including platforms such as DraftKings, FanDuel (FLUT), BetMGM (MGM), Caesars Sportsbook ( CZR ), Fanatics, Bet365, Penn Sports Interactive, and Circa Sports.

Furthermore, prediction markets have seen explosive global growth since the late 2024 U.S. presidential election, when nearly all market participants were keen on using real money to bet on the outcome between Trump and Harris on Polymarket, a real-money prediction market platform. This indicates that the "bet on everything" trend has officially swept through global financial markets.

Currently, bets related to a potential war with Iran have pushed geopolitical contract volumes on Polymarket to record highs, further highlighting this trend. The scope of prediction markets has now expanded to cover nearly all quantifiable real-world events, including political elections, sporting events, economic data releases, weather changes, and geopolitical conflicts.

In terms of business models, prediction markets enter the sports arena through "event contracts," which can attract significant trading volume even in U.S. states where legal sports betting has not yet been authorized.

Analysts at Citizens Financial Group Inc., a prominent U.S. financial institution, predicted in their latest research report that prediction market companies, led by Polymarket, will see total industry revenue reach five times current levels by 2030, surpassing the $10 billion mark.