People often seek to make money through betting: however, an alternative is investing in stocks in companies within this industry. This long-term strategy can produce higher returns if you buy the right stocks and the market remains in your favour.
Of course, when investing in the stock market there is always the risk of losing your capital, but that’s part and parcel of the betting industry.
Online betting has consistently grown over recent years, with the legalisation of sports betting in the US in 2018 helping betting companies increase their growth even further. In the most recent Sports Betting Market Size & Share Analysis Report, the global sports betting market was valued at $83.65 billion in 2022. With the market continuously growing, purchasing stocks in this industry could see a potentially good return.
If you’re looking to invest in betting stocks, it’s important to put your money in the right places as not all companies are guaranteed to be profitable and the betting market is incredibly volatile. With that in mind, here are some of the best betting stocks to invest in based on their growth, valuation and market share…
Flutter Entertainment (FLTR)
Flutter Entertainment is a company offering sports betting and gaming. They operate in the UK, Ireland, the US and Australia. Being the leading operator in the UK and Ireland, Flutter Entertainment is in a good position with a profitable business and a large customer base. While you may not have heard of Flutter Entertainment, you definitely will know at least some of their brands:
- Paddy Power – a leading brand in UK and Ireland betting
- Betfair – one of the world’s biggest betting brands
- Sportbet – the top betting brand in Australia
- FanDual – the top sportsbook in the US
- Tombola – Britian’s biggest bingo site
Sitting at the top of the market across multiple countries makes Flutter Entertainment stocks a good option for investing and despite the seemingly huge number of new betting entrants in the UK, Flutter’s brands have remained leaders in the segment.
Penn Entertainment (PENN)
Penn Entertainment is an American company offering sports content and casino gambling. The US betting market is on the rise and has been since the legalisation of sports betting in 2018. Penn Entertainment has used this change of legislation in the US to help expand their business and this company has seen incredible growth in recent years. Penn Entertainment’s revenue in 2022 alone was $6.5 billion, making them a top dog in the US betting market.
Penn Entertainment is ever-expanding, improving the company’s year-on-year revenue and increasing the longevity of the company. In 2022, Penn Entertainment entered into a strategic partnership which saw them expanding in Canada, and towards the end of 2023, they reached a $2 billion agreement with ESPN.
MGM Resorts (MGM)
MGM is a huge company in the world of entertainment and has been for many years. Back in 2019 MGM Resorts partnered with Entain to launch BetMGM, an online betting platform. While they are an American-based company, BetMGM also operates in the UK and Canada. Since 2020, MGM Resorts have been taking advantage of the legalisation of sports betting in the US, expanding their offering of mobile sports betting to 13 states and constantly growing the number of states in which they provide retail sports betting.
DraftKings (DKNG)
One of the most well-known sports betting stocks out there, DraftKings is a popular choice when buying betting stocks. Since 2020, the company has hugely expanded, making its mark on the betting industry. DraftKings started off their expansion by performing a reverse merger with a special purpose acquisition company (SPAC). Since making this move, their stock has performed very well. It has also allowed them to add multiple new business partners to their operation, enhancing their offers and their business strategy. DraftKings have established themselves as a company with great prospects and longevity, making them a good option when buying betting shares.
Roundhill Sports Betting & iGaming ETF (BETZ)
For broader exposure to the betting and gaming industry, you could instead buy shares in an ETF. An ETF is a collective investment that gives access to a wider range of markets.
Roundhill Sports Betting & iGaming ETF oversees the performance of the Roundhill Sports Betting & iGaming Index. This index consists of a collection of stocks for companies involved in the betting and iGaming industry, such as online betting platforms, physical betting bookmakers and even the companies that provide the technology that betting and gaming companies use.
Roundhill Sports Betting & iGaming ETF may be a newer player in the sports betting and online gaming world but it is a good pick for dipping your toes into stocks and investments.
Overall, there are plenty of betting share options out there if you are looking for a long-term strategy within the betting industry. The key thing is to invest in a company that has a good standing in the market as well as strong future prospects.
