Soccer World Cup:
The opening match of the 2022 World Cup is scheduled for November 20 with Qatar playing Ecuador. The soccer tournament will run through December 18 and is expected to attract 5B viewers to make it the most watched sporting event in history.
The men’s World Cup will be the first with widespread sports betting legal in the U.S. Covers.com sports betting reporter Geoff Zochonde previewed that the obvious candidates for a World Cup sports betting lift would be DraftKings (NASDAQ:DKNG) and FanDuel (DUEL). He also thinks the World Cup could also be an opportunity for smaller operators in the U.S. that have roots outside the country to showcase deeper betting markets to their American clientele during the tournament. Bet365 and Super Group’s (SGHC) Betway are two betting sports betting shops to watch
Roundhill Investment’s Will Hershey thinks the World Cup could benefit Entain (OTCPK:GMVHF), as well as European betting stock peers such as Kindred Group (OTC:KNDGF) and 888 Holdings (OTCPK:EIHDF). Looking at the beverage sector, Bank of America tipped that Ambev (NYSE:ABEV) typically sees an incremental boost in beer sales during the World Cup, while Evercore ISI said it sees a big tailwind for Anheuser-Busch InBev (BUD) this quarter from the global focus on the tournament.
Wells Fargo thinks the unique timing of the World Cup around the holidays sets up well for Electronic Arts (EA). Taking a broader view, Wells Fargo noted one of the winners from the World Cup could be the host nation of Qatar itself. The event is seen having the potential to enhance Qatar’s status on the global stage and make the tiny wealthy nation more influential over economic affairs going forward.
Companies with relationships in Qatar include JetBlue (JBLU), ConocoPhillips (COP), Exxon Mobil (XOM), and TotalEnergies (TTE). Qatar’s sovereign wealth fund is planning to raise its 5% stake in Swiss lender Credit Suisse (CS) by participating in a stock offering.