While the majority of eyes will be on the upcoming U.S. presidential race this coming November, certain states will also have a chance to vote on other issues. For example, Maryland will have the option to vote for or against the legalization of sports betting, which could benefit a certain exchange-traded fund (ETF) should other states follow suit and vote in favor of sports betting.
“The presidential race may be the focus of the upcoming November election, but Maryland has something else big on the ballot: sports betting,” an Our Community Now article posited. “On November 3, voters will be asked to vote yes or no on Maryland Question 2, a law that would make sports betting legal in licensed facilities in Maryland. The revenue generated from a tax on sports wagering is slated to fund education around the state.”
Covid-19 put the dampers on a lot of professional sports, but as activity starts to pick up even more, the timing couldn’t be more auspicious for the Roundhill Sports Betting & iGaming ETF (BETZ). With professional baseball and basketball in its playoff season, while professional football is underway, sports betting has also restarted.
The BETZ ETF is designed to offer retail and institutional investors exposure to sports betting and iGaming industries by providing investment results that closely correspond, before fees and expenses, to the performance of the Roundhill Sports Betting & iGaming Index (“BETZ Index”).
The Roundhill Sports Betting & iGaming Index is the first index globally designed to track the performance of the sports betting and iGaming industry. The Index consists of a tiered weight portfolio of globally-listed companies who are actively involved in the sports betting & iGaming industry. This classification includes (i) companies that operate in-person and/or online sports books (ii) companies that operate online/internet gambling platforms and (iii) companies that provide infrastructure or technology to such companies in (i) or (ii).
“In Maryland, several businesses have expressed interest in opening sports books including racetracks, casinos, and football stadiums,” the article said. “The bill passed by the general assembly also requires a disparity study be conducted to decide what kind of efforts should be made to help minority- and women-owned businesses get sports wagering licenses. The law would also open the door for fantasy sports companies like FanDuel and DraftKings who currently can’t operate under Maryland law.”
“If Question 2 does pass in the general election, the new law will go into effect on July 2, 2021,” the article added. “Revenue raised will go into the Education Trust Fund, a fund that currently holds money derived from traditional gaming. Projections show sports betting could produce up to $40 million dollars each year that could be used to fund education and the construction of schools.”
For more market trends, visit ETF Trends.