Football season is officially underway and this year is expected to be huge for sports betting stocks, particularly for wagers placed online.

Since 2018, a total of 30 U.S. states have legalized sports betting, including 21 states that now allow online betting. Governments have warmed to sports betting as they see it as a way to generate new tax revenue and replenish coffers that were depleted during the Covid-19 pandemic.

Americans love to bet on sports. According to the American Gaming Association, more than $125 billion has been wagered on sports since a 2018 Supreme Court decision that enabled all 50 states to offer online sports betting. In 2021 alone, Americans bet $57.2 billion on sporting events, an annual increase of 165%.

Among sports betting, football is king. The American Gaming Association estimates that 45 million Americans placed bets on NFL games during the 2021 season and is forecasting even more betting to take place this season. A total of $7.61 billion was wagered on the Super Bowl this past February.

With this year’s NFL season now underway and sports betting taking off across America, we look at three sports betting stocks to buy now.

DraftKings (DKNG)

DraftKings (NASDAQ:DKNG) stock has been sacked more than most quarterbacks over the past year. In the last 12 months, DKNG stock has fallen 67%, including a 33% decline this year.

The shares now change hands at less than $20. The slump is due to the fact that DraftKings remains unprofitable. The company is burning through cash on promotions and marketing in an attempt to gain market share.

DKNG spent $1 billion on marketing, including promotions, in 2021. Its latest earnings print showed it also spent nearly $200 million on sales and marketing in this year’s second quarter alone, a year-over-year increase of 16%.

That kind of spending led to DraftKings recording a Q2 loss of $217.1 million. However, the company is growing fast. Its average monthly paying customers increased by 30% over the past year to 1.5 million.

DraftKings’ average revenue per paying user jumped 30% to $103, making this one of the sports betting stocks to buy on the dip.

Flutter Entertainment (PDYPY)

Flutter Entertainment (OTCMKTS:PDYPY) is an Irish gaming company that operates DraftKings’ main competitor in the online sports betting world: FanDuel. The company also owns and operates popular sites such as PokerStars and Sportsbet.com.

FanDuel’s share of the online sports betting market in America is nearly double that of DraftKings’ (41% versus 22%).

Owing to the popularity of its various gaming sites, FLTR stock has fared a little better than rival DraftKings, down 41% over the past year. However, the company is hoping to get a lift from the NFL season.

While FanDuel chief executive Amy Howe has said that the sports gambling market is oversaturated, it hasn’t stopped the company from heavily promoting itself to NFL fans. That promotion looks to be paying off.

FanDuel became the first among online sports betting companies to record a profit, announcing that it earned $22 million in this year’s second quarter. This makes it one of the more profitable sports betting stocks to buy.

MGM Resorts (MGM)

MGM Resorts (NYSE:MGM) stock is another of the sports betting stocks that has been pushed lower this year, down 24% since January.

The company is only now starting to recover from the ravages of the pandemic. Its operations in China continue to be affected by Covid-19 outbreaks.

The company has launched the BetMGM Online Sportsbook, where patrons can bet on sporting events. The company just announced the hiring of current Las Vegas Raiders wide receiver Davante Adams as its brand ambassador. Adams will help promote BetMGM to football fans.

MGM Resorts has made clear that it sees sports betting as a big part of its future, even as it sells off many of its physical casinos. The company also bought back $2.1 billion of its stock over the past year, which is encouraging.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.