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
NYSE: FLUT
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NASDAQ: DKNG
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3. MGM Resorts
NYSE: MGM
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MGM Resorts (MGM +5.43%) 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. MGM uses LeoVegas to offer BetMGM-branded services outside the U.S.
BetMGM has seen its market share in U.S. online sports betting fall to just 8% as FanDuel and DraftKings continue to grow, but it's stabilized around that level. It also lost its lead in igaming, with its market share falling below 25%.
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-COVID-19 pandemic levels.
4. Caesars Entertainment
NASDAQ: CZR
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NASDAQ: PENN
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Penn (PENN +6.27%) operates 42 casinos across 19 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 20 U.S. jurisdictions 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. Its partnership with ESPN likewise offers increased organic reach through its 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.
6. Roundhill Sports Betting & iGaming ETF
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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