Investing in Casino Stocks

A night at the casino might seem like an experience frozen in time -- imagine visions of James Bond or pressing your luck at the craps table -- but the casino industry is changing rapidly, and new developments present a unique opportunity for investors.

Online gaming is becoming legal in many U.S. states, and both old-school casino chains and upstart online gambling stocks are jumping on the trend. Meanwhile, the Asian market, centered on the Chinese territory of Macau, has asserted itself as the largest gambling market in the world, with big winnings for operators who own one of the handful of licenses to operate on the island.

After getting hit hard by the COVID-19 pandemic, the industry has made a successful comeback. Pent-up demand has prompted gamblers and tourists to return in full force to destinations such as Las Vegas. After all, brick-and-mortar casinos don't just make money on table games and slots.

Like other leisure and hospitality stocks, they operate like hotels, relying on room occupancy, as well as conventions and other gatherings, for a substantial portion of their revenue. Since spending on gambling and tourism is highly correlated with the overall health of the economy, casino stocks are considered consumer discretionary stocks.

If you're looking for some of the best casino stocks out there, keep reading to see six of the most attractive gambling stocks you can buy today.

Top casino stocks

Top casino stocks in 2025

Companies 1 - 3

1. MGM Resorts

MGM has one of the most impressive collections of properties in the casino industry. It owns many of the most familiar casino resorts on the Las Vegas Strip, including the Bellagio, MGM Grand, Luxor, and New York-New York, as well as locations in Atlantic City, Detroit, and Mississippi, among others. It also has 56% stakes in two Macau casinos: MGM Macau and MGM Cotai.

About two-thirds of its 45,000 guest rooms are on the Strip, making it more exposed to Las Vegas tourism than many of its peers.

MGM's stock plunged when the pandemic first struck in March 2020, but has since rallied to post-financial-crisis highs thanks to an investment from IAC/Interactive (IAC 2.94%) and a pivot to online gaming with BetMGM. As of 2025, IAC owns approximately 23% of MGM.

In 2024, it achieved record full-year revenue and adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) across the business, with revenue up 7% to $17.2 billion, and adjusted EBITDA rose from $2.3 billion to $2.4 billion. The removal of COVID-related restrictions in Macau also led to a 28% increase in revenue to $4 billion.

MGM was one of several casino operators awarded a new 10-year gaming license in Macau at the end of 2022, ensuring its future in the gaming territory.

2. Las Vegas Sands

If you're looking to make a bet on Macau, Las Vegas Sands is the way to go. The company is focused entirely on the Asian market, with five casinos in Macau and the Marina Bay Sands in Singapore. In March 2021, it sold its Las Vegas business, including the Venetian, to a private equity firm for $6.25 billion.

Unfortunately, the strategy of focusing on Asia backfired during the COVID-19 pandemic as traffic to Macau plunged due to strict lockdowns in China and other Asian regions. But the business recovered in 2023 and continued to grow in 2024 with $11.3 billion in revenue, up 9% from 2023, and operating income of $2.4 billion, showing it's back on solid footing and delivering strong operating margins.

The company is also experiencing a better-than-expected recovery at its Marina Bay Sands resort in Singapore.

With its focus on the international market, Las Vegas Sands has been slower to move into online gaming. In 2023, reports came out that the company was planning to launch a B2B online business with a live dealer casino business, though the company itself has not made a major announcement. It has also invested in the online gaming company Huddle Tech and seems focused on gaining exposure to online gaming in different ways.

3. Wynn Resorts

Wynn is another diversified casino operator, with 72% ownership of the Wynn Palace and Wynn Macau in Macau. Additionally, it wholly owns the Wynn and Encore in Las Vegas and the Encore Boston Harbor, which opened in 2019.

In October 2020, the company also launched Wynn Interactive, in which it owns a 97% stake. It partnered with and later acquired BetBull to create an online sportsbook and online casino. It then closed BetBull in 2022.

Wynn almost sold Wynn Interactive to a special purpose acquisition company (SPAC) in 2021, but backed away from the deal in November 2021. Media reports in January 2022 indicated the company was again seeking a buyer. Former CEO Matt Maddox had said that the economics for online sports betting aren't favorable because competitors are spending too much on customer acquisition costs.

In 2023 and 2024, WynnBET ceased operations in several states. Still, its core casino business remains solid. In 2024, revenue jumped 9% to $7.1 billion, and the company generated $1.1 billion in operating income.

Wynn aims to continue developing big luxury properties and recently announced plans for Wynn Al Marjan Island, a resort near Dubai set to open in early 2027. The company's focus on new markets, such as Dubai and the Boston area, could pay off for investors down the road.

Companies 4 - 6

4. Penn Entertainment

Penn Entertainment shares skyrocketed early in the pandemic as investors were impressed by its moves into online gambling. However, since then, the stock has cooled off with the fading of the online gambling boom, and Penn has given up essentially all its pandemic-era gains.

The company owns 44 properties in 20 states, but the stock has become primarily associated with online gambling. Penn Interactive operates as an online sportsbook and casino. After acquiring Barstool Sports, Penn reached an agreement to rebrand Barstool Sportsbook as ESPN Bet in a 10-year, $2 billion deal with ESPN and let go of the Barstool brand.

The company also acquired theScore, another digital media and gaming platform, for $2.1 billion in 2021, helping it assert its position in online gaming. Revenue grew slightly, but the company is still operating at a loss on a generally accepted accounting principles (GAAP) basis as it appears to be waiting for its investments in digital gaming to pay off. In addition to ESPNBet and theScore, it's also begun launching standalone Hollywood Casino apps in some states.

If the company can generate significant profits from online sports betting, it looks well-positioned to be a winner.

5. DraftKings

DraftKings, which went public through a SPAC in 2020, is the only pure-play online gambling company on this list. It has something of a duopoly in online sports betting with FanDuel, claiming 34% of the market behind FanDuel's 44%.

Like many of its peers, DraftKings has used acquisitions to help it grow. In August 2021, it spent $1.5 billion to acquire Golden Nugget Online Gaming, strengthening its position in online casino games to expand its reach beyond sports betting and daily fantasy sports.

Social distancing and stay-at-home orders during the COVID-19 pandemic led to a boom in online sports betting and gambling, and DraftKings' revenue has continued to surge, even well after the pandemic faded. In 2024, revenue jumped 30% to $4.77 billion, though it's still unprofitable as it continues to spend aggressively on marketing. DraftKings did narrow its operating loss to $609 million, but may have to cut costs to reach profitability.

The company reached 4.8 million monthly paying users at the end of 2024. While it's still significantly unprofitable, if you're looking for growth in the casino industry, DraftKings' potential is hard to beat.

6. Caesars Entertainment

In 2020, Eldorado Resorts acquired Caesars Entertainment, retaining the Caesars name after the deal. Post-merger, Caesars became the largest casino operator in the U.S., with 54 properties worldwide, including eight on the Las Vegas Strip. Caesars operates casinos in 16 states.

Eldorado had been a top casino stock prior to the merger. The company, now known as Caesars, has delivered returns of roughly 1,700% since its 2014 initial public offering (IPO), thanks in part to Eldorado's aggressive acquisition strategy. The company spent $4 billion to buy British online gaming company William Hill Group in April 2021.

Although the company has made strides in online gaming, the majority of its business still comes from its Las Vegas and regional casinos. Like other casino chains, Caesars seeks to leverage its national network through a loyalty program that encourages visits to multiple properties.

With a strong push into online gaming, a well-respected sportsbook, and a balanced casino business between Las Vegas and regional locations, Caesars looks well-positioned for future growth, especially if you're looking to avoid the tumult in Macau. Revenue dipped slightly in 2024, falling from $11.4 billion after adjustments to $11.2 billion due to slight declines in its Las Vegas and regional businesses, while the smaller digital business posted growth.

Its digital business is also delivering solid profits, a promising sign.

Related investing topics

Should you buy?

Should you buy casino stocks?

As a sector, casino stocks have underperformed the market over the past 10 years, but there have been big winners, including Caesars and online gaming stocks, such as DraftKings. With the expansion of online gambling in the U.S., the next 10 years will likely be much different from the past decade.

Below are several reasons to buy casino stocks:

• Casino stocks are closely correlated with the travel industry, which has been outgrowing the overall economy.
• Casino stocks are high-beta stocks, meaning they tend to outperform in bull markets. This is because consumers and businesses spend more money at casinos when the economy is strong.
• Casino stocks often pay dividends.
• Established casino companies tend to have strong operating margins and benefit from scale advantages.
• Acquisitions are likely to make the industry more concentrated, benefiting operators.
• Online gambling stocks can offer high growth potential.

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