The U.S. Supreme Court struck down the federal ban on sports betting in a 2018 decision, opening the doors for states to legalize it if they wish. Since then, 38 states and the District of Columbia have legalized sports betting in some form, many allowing online bets. Missouri is set to become the 39th state in December.
Six top sports betting stocks in 2025
As more states legalize sports betting, the market is growing quickly. Not only are new states easing restrictions, but betting is also growing more popular each year in states that have already legalized it. If you want to invest in this rapidly growing industry, here are six options to consider:
1. Flutter Entertainment
NASDAQ: DKNG
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3. MGM Resorts
NYSE: MGM
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4. Caesars Entertainment
NASDAQ: CZR
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Caesars (CZR +0.24%) is best known for its Caesars Palace casino in Las Vegas, but after its acquisition by Eldorado (which took the Caesars name), it now operates more than 50 casinos across the U.S. The company then acquired William Hill, which pushed it into the online sportsbook market in the U.S. It rebranded William Hill's operations to Caesars Sportsbook.
The company operates in 32 jurisdictions in North America, 25 of which include online sports betting and five that include internet gaming. Management has cut back on aggressive ad campaigns, which has resulted in some share loss. However, the digital segment now generates positive EBITDA and could produce positive net income for the business.
Caesars will likely continue to focus on acquiring brick-and-mortar casinos to add to its growing portfolio. Meanwhile, it's building two more casinos in Las Vegas. After facing large setbacks due to the COVID-19 pandemic, its operations in Macao and Singapore also hold potential.
5. Penn National Gaming
NASDAQ: PENN
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6. Roundhill Sports Betting & iGaming ETF
NYSEMKT: BETZ
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Pros and cons of investing in sports betting stocks
As with any industry, there are pluses and minuses to investing in sports betting stocks.
Pros:
- The U.S. is still in its early days of legalized sports betting, and many states have yet to fully legalize it. That provides significant growth opportunities.
- Technological advances and data collection provide additional growth opportunities to expand the market with more betting products and broader event coverage.
Cons:
- Federal law and regulations could curb U.S. sports betting, such as the new limit on gambling loss deductions in the latest tax legislation.
- Prediction markets present a new competitive threat to dedicated sports betting companies.
How to invest in sports betting stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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