What is the largest sports betting company?

Flutter Entertainment, the company behind FanDuel, is the largest sports betting company by market capitalization. Aside from its dominant position in the U.S., it operates sportsbooks and iGaming sites worldwide.

Can I invest in gambling?

You can invest in the gambling industry by purchasing stock in a casino, sportsbook, or internet gaming company. If the house always wins, you might as well own the house.

Are sport betting stocks good now?

Whether or not a sports betting stock is a good investment depends on various factors. Be sure to look for a company that's growing its customer base and revenue. If it's a strong company, the stock still needs to trade at an attractive valuation relative to the company's growth prospects. If that's the case, it could be a good investment now.

Do sports betting stocks pay dividends?

Most sports betting stocks do not pay a dividend. They're often focused on expanding their player base and lobbying to legalize online sports betting in more markets. Some will use excess cash to acquire existing sports betting companies in other markets to gain the benefits of scale.

How do sports betting companies generate revenue?

Sportsbooks offer a menu of bets at odds they believe are slightly worse than fair. The percentage below fair value is called the vig. If a sportsbook does a good job of setting lines, managing risk, and changing the odds as bets come in, it will be able to generate net revenue on the aggregate bets placed on its platform. The vig is usually big enough that, even when the sportsbook is slightly wrong, it can still profit.

Is there an ETF for sports betting?

Yes, the Roundhill Sports Betting ETF (NYSE: BETZ). The ETF aims to capitalize on the growing trend of sports betting in the United States and the shift from physical to online sportsbooks worldwide. It holds roughly 30 stocks and charges an expense ratio of 0.75%.

5 Best Sports Betting Stocks for 2026 and How to Invest

As more states legalize sports betting, the market is growing quickly.

By Adam Levy – Updated Aug 17, 2026 at 5:44 PM EST | Fact-checked by Parker Hicks

Key Points

More states are legalizing sports betting, growing the investment potential in this sector.
Invest in top sports betting stocks like Flutter Entertainment, with a strong market presence.
Understanding market leaders and trends helps choose profitable sports betting investments.

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, 40 states, the District of Columbia, and Puerto Rico have legalized sports betting in some form, many allowing online bets.

Five top sports betting stocks in 2026

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 five options to consider:

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Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.
Flutter Entertainment Plc (NYSE:FLUT)	$102.40	$17.7 billion
DraftKings (NASDAQ:DKNG)	$24.49	$12.0 billion
MGM Resorts International (NYSE:MGM)	$41.28	$10.4 billion
Caesars Entertainment (NASDAQ:CZR)	$29.70	$6.1 billion
Penn Entertainment (NASDAQ:PENN)	$17.13	$2.3 billion

Data as of Sep 3, 2026. Showing 5 of 5 total entries.

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1. Flutter Entertainment

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NYSE: FLUT

Flutter Entertainment Plc

Premium Feature

Moneyball Superscore

68/100

Today's Change

(0.41%) $0.42

Current Price

$102.40

Key Data Points

Market Cap

$18B

Day's Range

$101.56 - $104.84

52wk Range

$89.71 - $297.23

Volume

948.9K

Avg Vol

2.9M

Gross Margin

42.46%

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NASDAQ: DKNG

DraftKings

Today's Change

(1.14%) $0.28

Current Price

$24.49

Key Data Points

Market Cap

$12B

Day's Range

$24.25 - $24.82

52wk Range

$20.46 - $48.78

Volume

3.5M

Avg Vol

12.2M

Gross Margin

40.54%

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DraftKings (DKNG +1.09%) operates the second-largest online sportsbook in the U.S. It currently operates in 27 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, the company's online-only presence offers significant growth potential. Management expects its total addressable market to grow to between $55 billion and $80 billion by 2030.

DraftKings is executing well and growing its market share quickly. It added 3 million active customers in 2024 and another 800,000 in 2025. As a result, net revenue is growing quickly, and earnings before interest, taxes, depreciation, and amortization (EBITDA) growth is strong.

3. MGM Resorts

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NYSE: MGM

MGM Resorts International

Premium Feature

Moneyball Superscore

68/100

Today's Change

(-0.39%) $-0.16

Current Price

$41.28

Key Data Points

Market Cap

$10B

Day's Range

$40.86 - $41.66

52wk Range

$29.18 - $51.59

Volume

829K

Avg Vol

2.7M

Gross Margin

38.05%

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MGM Resorts (MGM -0.39%) 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 is losing market share. The company cut its outlook twice in short order in 2026, as competition from prediction markets has curbed its ability to grow its customer base and handle.

MGM's brick-and-mortar operations will expand to Japan in the next decade, with the opening of 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. Las Vegas is set to benefit from a handful of sports events over the next two years and the potential to add an MLB and NBA team.

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4. Caesars Entertainment

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NASDAQ: CZR

Caesars Entertainment

Premium Feature

Moneyball Superscore

54/100

Today's Change

(0.02%) $0.01

Current Price

$29.70

Key Data Points

Market Cap

$6.1B

Day's Range

$29.68 - $29.74

52wk Range

$17.86 - $30.88

Volume

741.9K

Avg Vol

4.4M

Gross Margin

37.69%

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Caesars (CZR +0.02%) 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, resulting 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. After facing large setbacks due to the COVID-19 pandemic, its operations in Macau and Singapore also hold potential.

5. Penn National Gaming

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NASDAQ: PENN

Penn Entertainment

Premium Feature

Moneyball Superscore

47/100

Today's Change

(1.39%) $0.24

Current Price

$17.13

Key Data Points

Market Cap

$2.3B

Day's Range

$16.84 - $17.16

52wk Range

$11.65 - $22.36

Volume

780.4K

Avg Vol

3.1M

Gross Margin

28.69%

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Penn (PENN +1.36%) operates 42 casinos across 19 states and has moved into the world of online sports betting with the acquisition of a 36% stake in Barstool in 2020 and theScore in 2021.

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 benefited from Barstool's and theScore's media segments for more organic advertising of its sportsbook.

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.

How to buy sports betting stocks

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker 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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Benefits and risks of investing in sports betting stocks

As with any industry, there are pluses and minuses to investing in sports betting stocks.

Benefits

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.
Companies with a data advantage can leverage it to expand into new markets, including casino gaming and prediction markets.

Risks

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.
Highly competitive market where promotions and other customer acquisition costs can weigh on profits.

Methodology: How these stocks were chosen

The above companies hold some of the largest stakes in online and in-casino sports betting in the United States and around the world. They offer a variety of ways to invest in the growing trend of sports betting in the U.S. with varying degrees of operational diversification. You can buy a stock in a business that focuses exclusively on online sports betting in North America, or a company with a portfolio of land-based casinos around the world with smaller digital betting properties.

Should you invest in sports betting stocks

Sports betting is a well-established industry in many countries, but the U.S. -- one of the world's biggest potential markets -- is still in its infancy and remains in flux. The trend favors more U.S. states legalizing sports betting, providing a tailwind for sports betting companies. Investors will want to consider each company's market position and competitive advantages, such as strong brand, scale, and data, to protect them from threats like prediction markets. There are multiple great stocks to choose from amid the growing industry.

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Investing in sports betting stock: FAQ

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About the Author

Adam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings. Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University.

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@admlvy

Adam Levy has no position in any of the stocks mentioned. The Motley Fool recommends Flutter Entertainment Plc. The Motley Fool has a disclosure policy.

5 Best Sports Betting Stocks for 2026 and How to Invest

As more states legalize sports betting, the market is growing quickly.

Key Points