Sports betting is a rapidly growing market still in its infancy after the Supreme Court removed the federal ban back in 2018. That translates to some great investment options with seemingly limitless potential.
We’re already up to 36 states with legalized sports betting. A handful more are already pending legislation to follow suit. That just shows how far this niche actually is from saturation within US borders alone.
Sports betting has been legal in Canada since 2021, with a number of sportsbooks to choose from. For example, LegalBet Canada does an excellent job of reviewing online betting sites while offering advice and tips on maximizing your experience.
Check out our list of the best sports betting stocks to add to your portfolio now:
Best Sports Betting Stocks to Check Out
DraftKings (NASDAQ: DKNG)
DraftKings launched in 2012 as an online fantasy sports platform and is now one of the largest pure-play sports betting sites in the world. It has partnerships with all the major American sports leagues and several unique betting styles.
Players can engage with daily opportunities by drafting a team or banking on the outcome of a particular athlete. On the flip side, it’s possible to take a more traditional approach to making wagers through the online sportsbook.
The platform also has an online casino with everyone’s favorite games, accessible from the comfort of your own home. More recently, DraftKings delved into the world of NFTs in its ever-expanding marketplace.
Shares continue a healthy upward trend, regaining momentum held during the height of the global pandemic. This positive direction is further backed by strong revenue and earnings growth.
Now’s a great time to get in, considering the company has its sights on reclaiming the stock price it held just a few years back.
Flutter Entertainment PLC (OTC: PDYPY)
Flutter Entertainment is another online betting, gaming, and entertainment provider. The company reaches more than 18 million customers worldwide in more than 100 countries.
Its services are spread across 14 brands, with FanDuel in the US holding the title of the most popular online sports betting site in the country. Flutter is also well-known for its internationally lauded PokerStars.
Although most brands operate exclusively online, Paddy Power has over 600 betting shops in the UK and Ireland. This diversity over several markets puts Flutter in a good position moving forward.
Shares are up on the year so far, with a continued positive upside look heading toward the holidays. The company remains strong in revenue and saw an increase of two million players between 2021 and 2022.
While it’s only possible to get Flutter stock on an over-the-counter basis in the US right now, the company did receive approval from shareholders for a secondary listing earlier this year. We may see shares on a major US exchange in the near future.
PENN Entertainment, Inc. (NASDAQ: PENN)
Next up is Penn Entertainment, covering a wide range of betting opportunities. Its signature sports offerings are ESPN BET and theScore BET, each with innovative online avenues to get in on the action.
The betting umbrella extends to physical locations as well. Penn owns and operates 43 casinos and racetracks throughout North America where these activities are legal. These centers boast 50,000+ gaming machines and more than 7,800 hotel rooms.
To keep customers coming back for more, Penn ties everything together with its PENN Play app.
Such an incredible footprint comes from a number of strategic acquisitions over Penn’s 50-year history from track operator to betting giant. An increase in locations has led to a boost in users despite falling share prices.
The recent partnership with ESPN and foray into the online space could bode very well for Penn and offer the turnaround it needs.
MGM Resorts International (NYSE: MGM)
MGM Resorts International started as a single hotel/casino back in the 1960s and has grown by epic proportions over the last 60 years. Today, the betting and entertainment company controls 31 unique destinations in attractive US and Asian locations.
Each resort is known for opulence and luxury, featuring best-in-class dining, retail, entertainment, and gambling opportunities. A current venture into the Japanese market could open the door to millions more visitors per year.
MGM jointly owns BetMGM with Britain’s Entrain and is the company’s online sports betting provider. Although relatively new, MGM expects its online app to continue carving away at the US’s sports betting market.
The entertainment giant’s forward-thinking puts it in the prime spot for growth. Financials appear strong across the board, and MGM’s desire to grow on all fronts is a positive sign. Price targets as high as 35% over the current valuation reveal excellent potential here.
Churchill Downs, Inc. (NASDAQ: CHDN)
Churchill Downs Incorporated is the parent company for the namesake racetrack and home of the Kentucky Derby. Nearly 150 runs of this race alone is quite the statement, but the events leading up to it draw a lot of attention as well.
If that wasn’t enough, the company holds a total of 27 casinos and horse racing properties around the region. Each of these showcases additional chances for folks to gamble and bring in income for the entertainment giant. A big boost came with last year’s Peninsula Pacific Entertainment purchase.
Sports betting continues online through Churchill Downs’ TwinSpires segment. The app remains one of the largest and most profitable online horse wagering platforms in the country.
Revenue has consistently been up 30% to 40% throughout 2023, in no small part to the initiatives listed above. Analysts are optimistic about this growth staying on track and steering share prices in the right direction.
Gambling.com Group (NASDAQ: GAMB)
Gambling.com has decades of experience in sports media and online gambling. While not a sports betting service itself, it’s a leading site for guides and reviews on the topic.
The company earns revenue by sending new customers off to sportsbooks or online casinos. GAMB has earned a number of affiliate awards for its work.
Today, Gambling.com is just one of more than 50 web portals guiding players where they want to go. Its reach extends to 30 different nationalities on three continents.
The fall earnings call revealed a 19% revenue boost from the previous year, keeping up with the upward trend. More than 86,000 new customers have joined the site.
Now may be a great time to add some shares of GAMB to your portfolio to play off that growth.
Are Sports Betting Stocks a Good Investment?
Sports betting is a timeless form of entertainment, with no sign of slowing down at any point in the future. Billions of sports fans around the world keep the industry alive, and pretty much any sport can be wagered upon.
The sector as a whole weathered the pandemic well and has largely returned to pre-Covid levels. The shutdown only served to usher in an online presence that was a bit misrepresented in the past.
In this ever-evolving space, it’s crucial to do your research before making any kind of investment. That said, we feel any of the options in our best sports betting stocks list are a great place to start.