In May 2018, the Supreme Court quietly overturned a landmark piece of legislation…

It didn’t garner many headlines. In fact, it was often buried under more prominent headlines like the U.S. government shutdowns in January and February, or the tragic school shooting in Parkland, Florida. Then, of course, there was the ongoing drama surrounding Supreme Court justice Brett Kavanaugh’s nomination. There was also the Royal Wedding, the kickoff of the trade war with China, and the World Cup, to name a few…

But just because it didn’t make the same headlines as these events doesn’t mean it didn’t have massive implications. In fact, that very rule change in May 2018 has set the stage for what could be one of the best investment opportunities we’re likely to see in years.

The legislation I’m referring to is the Professional and Amateur Sports Protection Act (or PASPA) for short. This act was passed in 1992 and effectively banned sports betting in 46 U.S. states. But as of May 2018, that’s no longer the case…

The State Of Legal Sports Gambling In The U.S.

For years, Nevada was the only place you could go in America to find legal sportsbooks. Of course, that didn’t stop people from gambling. Many people still made wagers under the table. In fact, according to estimates from the American Gaming Association, illicit sports-gambling activity in the U.S. totals roughly $150 billion annually.

Gaming revenue from sports gambling totaled $470 million in the U.S. in 2018. Roughly $300 million was from Nevada sportsbooks. The remaining was from five states that quickly capitalized on the Supreme Court’s decision to overturn PASPA.

That’s huge when you think about it. The decision was made in May, which means these states had to act quickly to change their laws and allow sports betting. By year-end they racked up $170 million worth of sports betting revenue. And of course, these states were eager to get their cut in the form of increased tax revenue.

Since the ruling 14 states have legalized sports betting. Seven states have passed laws to make sports betting legal, but are pending a launch date. And 24 states have pending legislation to approve sports gambling that’s in various stages of the approval process.

An Obvious (And Major) Catalyst

Back in November last year, I wrote about the power of what’s known as catalysts. In fact, I said it was the one thing every stock you own should have.

To recap, here’s how I described a catalyst:

The textbook definition of a catalyst is “an agent that provokes or speeds significant change or action.” In the business world, anything that tilts the playing field and can either work for you or against you.

Simply put, a catalyst can disrupt the financial models and attract unusually strong buying interest — or spark a selloff — in a stock or industry group. They can come from almost anywhere: a management shakeup, a disruptive new technology, an accretive acquisition, a major court ruling, a shift in Federal Reserve monetary policy…

Sometimes a catalyst can be as innocent as a change in weather. For example, unseasonably cold and snowy winters can be a boon for utility companies that supply heat to those regions. On the other hand, those same cold and snowy conditions can hamper inbound and outbound shipments and in the extreme can affect such things as auto sales.

Other times a catalyst is so massive that it not only dramatically changes the trajectory of a company’s share price, but revolutionizes industries and has a major impact on our everyday lives.

To put it simply, this ruling has started a wave of legalized gambling spreading throughout the country. And that’s about as obvious (and powerful) a catalyst as I can think of.

How powerful? Investment firm Morgan Stanley predicts the U.S. market will generate almost $7 billion in revenue by 2025, up from $833 million last year.

How You Can Profit

Make no mistake about it, this is a massive trend that isn’t getting much attention in mainstream media. However, my Maximum Profit system has spotted the momentum.

As many of you know, one of the components of our system involves relative strength (RS).

For those who may not be familiar, here’s a simple way to think about RS that I’ve mentioned before:

Within a group of stocks, some will perform better than others. Relative strength (RS) recognizes those differences. As the name implies, relative strength ranks relative performance. In short, it’s a way to rank investments from the strongest (best performers) to the weakest (poor performers).

The reason this matters is because studies have shown that the front-runners in the market are likely to continue outperforming.

And as you can see in the table below, the RS ratings for most of the major publicly traded gambling companies are above 70, which means there’s significant momentum behind them.

Action To Take

While the majority of these stocks sport RS ratings high enough to make it into our system, that’s only part of the algorithm.

For the sake of time, I won’t get into how the rest of our system works today. And I’ll hold off on telling you which ones I actually picked, since my premium readers pay good money for that privilege. But this list should serve as a good starting point for further research.

In the meantime, I recommend checking out my latest research report.

You see, I’ve been closely following a little-known satellite company that just paid a measly $26 million for a tech startup. And this tiny company was sitting on an absolute gold mine…

As it turns out, this startup owned exclusive global rights to a huge slice of satellite communication frequency channels. And this hidden asset could be worth up to $10 billion in the future.

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