The world of gambling has evolved dramatically over the past decade, shifting from smoky casinos to being at the fingertips of millions through online platforms.
With the gambling industry projected to grow at an impressive rate, savvy investors are eyeing stocks that could yield significant returns.
But which US gambling stocks should you consider adding to your portfolio?
Let’s have a look at some of the top contenders.Â
DraftKings
DraftKings has become synonymous with online sports betting and daily fantasy sports, carving out a dominant position in the US market.
Since its inception, DraftKings has grown rapidly, benefiting from the expanding legalization of sports betting across various states and even entering markets as far afield as Ireland, with sites like Scs betting sites showing them ranked as one of the best bookmakers there.
In 2023, DraftKings reported a revenue surge of over 60%, driven by strong customer acquisition and significant engagement during major sporting events.
The company’s aggressive marketing strategies and partnerships with prominent sports leagues have positioned it well for future growth.
With more states expected to legalize sports betting, DraftKings is poised to capitalize on these new markets.Â
Penn Entertainment
Penn Entertainment, formerly Penn National Gaming, offers a diversified approach to the gambling industry.
The company’s acquisition of a stake in Barstool Sports further expanded its reach, attracting a younger demographic interested in sports betting and digital content.
Penn’s stock has shown resilience, bouncing back from the challenges of the pandemic and benefiting from the surge in online gambling.
The company reported a revenue increase of 7.3% year-over-year in the first quarter of 2024, highlighting its steady growth.Â
MGM Resorts International
Known for its iconic casinos and hotels in Las Vegas, MGM Resorts has successfully diversified into online gaming through its BetMGM platform.
The company’s robust online presence has allowed it to tap into the booming sports betting market, positioning it as a formidable player in both physical and digital gambling spaces.
MGM Resorts reported a revenue increase of 14% in the first half of 2024, thanks to a strong recovery in tourism and a surge in online gaming revenue.
With plans to expand BetMGM into new markets and enhance its technology, MGM is well-positioned for long-term growth.Â
Caesars Entertainment
Caesars Entertainment has undergone significant transformation in recent years.
After its merger with Eldorado Resorts, Caesars became the largest casino and entertainment company in the US. Since, it has aggressively pursued the online market through its Caesars Sportsbook.
In 2023, Caesars reported a 10% increase in digital revenue, reflecting the growing popularity of its online platforms.
The Future of Gambling Stocks
With the US gambling market expected to reach $127 billion by 2027, the potential for growth in this sector is enormous.
Companies like DraftKings, Penn Entertainment, MGM Resorts, and Caesars Entertainment are at the forefront of this expansion, each offering unique opportunities for investors.
But as with any investment, it’s essential to weigh the risks.
Regulatory changes, market saturation, and economic downturns could all impact these stocks.
By carefully considering these companies, you could potentially score big in the high-stakes world of gambling stocks.Â
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