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Typically, sports books are among the least profitable parts of a casino's gaming operations, said John Decree, head of North America equity for Union Gaming, a boutique investment bank that focuses on the gaming industry. Casinos often rely upon sports books to draw in gamblers and get them playing more profitable games like slots or blackjack, where the odds favor the house. But Decree and other experts predict much of sports wagering will occur online and on mobile apps. The Supreme Court decision led to a lift for casino stocks . But the expansion of casino gaming to more than 40 states has squeezed profits across the industry, and competition for sports gambling customers is expected to be fierce. "When you have increased competition and a debt-laden balance sheet, you have a problem," Decree said. And the coming of legal sports books will only increase competition. For example, racetracks are expected to be major players in sports gambling. Overseas operators are also looking for a way into the US market. FanDuel, the fantasy sports provider which recently merged with the US operations of London's sports book Paddy Power Betfair ( PDYPF ), is operating the sports book at a New Jersey racetrack which is adjacent to the stadium used by the New York Giants and Jets.
For the original version including any supplementary images or video, visit https://money.cnn.com/2018/08/25/news/companies/sports-gambling-casino-stocks/index.html
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