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, more than 38 states and the District of Columbia have legalized sports betting in some form, many allowing online bets. Two more states could legalize the practice in the near future.
6 top stocks
6 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:
Flutter
1. Flutter Entertainment
Flutter Entertainment (FLUT 2.94%) is a sports betting and gaming company operating in the U.K., Ireland, Australia, and the United States. Among its U.S. properties is FanDuel, the country's most popular online sports betting site.
Flutter estimated FanDuel's share of online sports betting had grown to about 43% by the end of 2023, up from about 40% at the end of 2021. That's despite the growing market size and competition.
FanDuel's online sportsbook is available in 26 states, and its online casino is available in five. Flutter is consistently reinvesting its profits in customer acquisition and expanding the market for sports betting and igaming. The results speak for themselves, with growing market share and strong top-line growth.
Outside the U.S., Flutter is also the leading operator in the more mature U.K. and Ireland market. That market is the largest in Europe, and as more betting shifts online, Flutter is well positioned to win a greater share. In Australia, it operates SportsBet, which Flutter claims holds a 45% market share of online sports betting.
DraftKings
2. DraftKings
DraftKings (DKNG 6.17%) operates the second-largest online sportsbook in the U.S., accounting for about 25% of the market, according to its internal estimates. It currently operates in 25 states and Washington, D.C., and its online casino is available in five states.
DraftKings is solely an online operator in the U.S. and Canada. It doesn't have any brick-and-mortar casinos, so it's a pure play on the growth of online sports betting in North America. Given the expected expansion of online sports betting in the U.S. and Canada, its online-only presence gives the company great growth potential.
DraftKings is executing well and growing its market share quickly. As of the end of 2023, it held a 37% share of the U.S. online sports betting market, and it's still seeing strong growth in early-launch states like New Jersey.
As a result, net revenue is growing quickly, and earnings before interest, taxes, depreciation, and amortization (EBITDA) growth is strong. In 2025, the company plans to introduce a tax surcharge in states with high taxes on sportsbooks, a move that could boost profits but may come at the cost of market share.
MGM Resorts
3. MGM Resorts
MGM Resorts (MGM 1.97%) is one of the biggest casino operators in the U.S. and Macau. It also jointly owns BetMGM's U.S. operations with Britain's Entain, and in 2022, it acquired LeoVegas, a leading sports betting and igaming operator in 10 European countries. It'll use LeoVegas to offer BetMGM-branded services outside the U.S.
BetMGM has seen its market share in U.S. online sports betting fall below 15% as FanDuel and DraftKings continue to grow. It also lost its lead in igaming, with its market share falling below 25% at the end of 2023.
MGM's brick-and-mortar operations will expand to Japan next decade as it's set to open the country's first legal casino in Osaka in 2030. That could be a big opportunity in the long run. In the meantime, operations in the U.S. and Macau have recovered and are moving past pre-pandemic levels.
Caesars
4. Caesars Entertainment
Caesars (CZR 0.43%) 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 31 jurisdictions in North America, 25 of which include online sports betting and five that include igaming. Management has cut back on aggressive ad campaigns, which 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 pandemic, its operations in Macao and Singapore also hold potential.
Penn National
5. Penn National Gaming
Penn (PENN -0.57%) operates 44 casinos across 20 states, and it moved into the world of online sports betting with the acquisition of a 36% stake in BarStool in 2020 and theScore in 2021. In 2023, it partnered with ESPN to launch ESPNBet, rebranding some of its retail locations with the ESPNBet name.
Its online sportsbook has licenses in 18 states and Ontario, and its online casino is available in four states and Ontario. Of its brick-and-mortar casinos, 32 operate retail sportsbooks across 15 states.
Penn has been less aggressive in marketing its online sportsbook, sticking to more targeted ads versus nationwide brand campaigns. It's also been a beneficiary of BarStool's and theScore's media segments for more organic advertising of its sportsbook, and it's set to get a boost from ESPN's branding and sports media dominance.
As a result, the company has been more profitable than other online sportsbooks, which must invest heavily in marketing. With operations confined to the U.S. and Canada, Penn is more of a pure play on the continued expansion of sports betting in North America.
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Roundhill Sports
6. Roundhill Sports Betting & iGaming ETF
For investors looking for broad exposure to the sports betting and online gaming industry without picking individual stocks, the Roundhill Sports Betting & iGaming ETF (BETZ 1.21%) invests across a portfolio of stocks in the industry. The fund currently holds more than 30 positions, including several of the names mentioned above. And its expense ratio of 0.75% isn't too high for a specialized index fund.
Investors should be aware that this ETF has high exposure to online gaming and sports betting. Investments include sportsbooks, technology for enabling online sportsbooks, casinos, and online gaming. It's also heavily invested in international stocks, which comprise more than two-thirds of its holdings. That could change, however, as the U.S. market for sports betting grows relative to the rest of the world.
A small position in this ETF could be worth a bet for investors looking for a simple way to gain exposure to sports gambling.
