Since 2018 when the US Supreme Court notoriously legalized sports betting, companies have been battling to claim the biggest customer base and triumph as the most well-known in the industry.
So, which US gambling stocks are worth investing in as sports betting grows exponentially?
If you don’t know where to start, we have compiled a list of the most successful businesses, with proof.
Flutter Entertainment (FLUT)
Flutter Entertainment is responsible for the biggest and most highly-rated online betting site in the US, which is obviously FanDuel. The sportsbook is available in 26 states in the US, as well as ranking highly in several countries like Ireland, the United Kingdom, Canada, and Australia. This is the main attribute as to why Flutter Entertainment is worthwhile investing in.
As well as FanDuel, the company operate other bookmakers such as Ireland’s very own Paddy Power, which is known for its cheery green design and fantastic horse racing odds. In addition to this, Flutter Entertainment is also associated with betting giants like Sky Betting, Betfair, Sportsbet, and more. Altogether, they own a plethora of first-rate platforms that are constantly evolving and succeeding expectations.
In 2023, Flutter Entertainment released impressive statistics, showing that in comparison to the previous year their revenue increased by 25%, and their average monthly players increased by 20%. This is further proof as to why they are a solid stock to invest in.
Draft Kings (DKNG)
Another name that will inevitably pop up when discussing US gambling stocks is Draft Kings. It is a huge company which operates in the US and Canada, but is yet to break Europe. The Draft Kings sportsbook is developed and brimming with special promotions, fantasy sports, cash prizes, and even flaunts a VIP exclusive offer. With this being said, it is best known for American football and soccer. This is why it’s no surprise that punters flock to Draft Kings.
It is also worth mentioning that Draft Kings also owns Jackpocket, a lottery app. The platform offers enticing games like Mega Millions, and Powerball, which is available in 17 states. In the future, Draft Kings has ambition to purchase even more companies in a bid to increase their revenue. Recently, they have acquired Simple Bet, which is already recognized by punters for in-play betting and AI technology on NFL, NBA, and MLB betting.
MGM Resorts (MGM)
MGM Resorts is all about the entertainment, as the company owns a series of hotels hosting exquisite shows and providing the best nightlife in the world. Furthermore, MGM remains one of the leading gambling businesses in the US, but is proof that you need continuous development to stay on top of your game. The company was falling behind, however made the bold decision to acquire Leo Vegas in 2022. The online sports betting company with the characteristic lion logo was established in 2012, and helped to put MGM back on the market. This partnership proved beneficial for both businesses.
MGM has high hopes for the future, hoping to establish the first legal casino in Osaka which was confirmed by the government in 2023.
Caesars Entertainment (CZR)
Caesars Entertainment is an entertainment company recognized for its hotels and casinos. The company was acquired in 2020 by Eldorado Resorts and this is when it changed its name and rebranded. From humble beginnings in Reno, the business is now established on four continents.
After selling former subsidiaries such as small casinos, Caesars Entertainment bought William Hill for a few million, and sold the European operations when stocks had drastically improved. They also have a partnership with ESPN, in a lucrative deal with agreements to integrate the two operators.
Currently, Caesars Entertainment have ownership of 59 gambling properties and no doubt have plans to acquire more.
Las Vegas Sands (LVS)
Let’s start by saying that profits at Las Vegas Sands are set to increase by over half in the next few years, despite its low price, hence why we believe it’s a bargain. The company is usually overlooked because of the giants like Flutter Entertainment, and also because it focuses attention on the renowned casino and not a sportsbook. Nevertheless, it cannot be emphasized enough that Las Vegas Sands is predicted to grow.
A huge reason for their success is the domination of both the US and Asia. Most recently, Las Vegas Sands has acquired the The Venetian Macao Resort Hotel in a multi-billion dollar sale, and there are plans to construct a New York casino resort which would not only sure thousands of jobs but also generate a huge revenue for the community.
What Is The Main Takeaway From This?
All in all, there are many US gambling stocks that show potential and although the future cannot be guaranteed, there are plenty of plans in the works. Features to look out for include global recognition, future planning, and smart acquisition choices that have boosted profits.
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