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As of now, legalized sports betting at the federal level is unlikely to become reality in the immediate term. That said, our Gaming, Lodging & Leisure analyst Todd Jordan says that in the longer term “it’s inevitable.”

The eventual legalization of sports betting is obviously a long-term bullish catalyst for certain regional gaming companies like Stars Group (TSG) and others that Jordan is currently bearish on like Penn National Gaming (PENN), Eldorado Resorts (ERI) and Boyd Gaming (BYD).

However, until there is more concrete movement at the federal level, legalization remains on the “wish list” for regional gaming bulls.

“This is a long-term play. It’s still on a state-by-state basis, so it’s not clear cut whatsoever,” Jordan explains in the clip above.

“When we finally get federal legislation, you’ll probably only see two or three players. It’s just not moving the needle enough yet.”

Watch the full clip above for more.

Legalized Sports Betting May Benefit These Stocks - risk ranges