Hoops mania is in the air as passionate college basketball fans engage in a major spring rite in the U.S.: March Madness.
Nowadays, filling out a bracket isn’t enough for NCAA tournament fans. Digital betting has launched a wave of sports gambling platforms that allow wagers on everything from who wins the tipoff in Game 1 to who survives the Final Four and takes home the trophy in three weeks.
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Make no mistake: Legions of sports bettors will flood the major sports gambling platforms before (and during) the tournament.
According to CasinoReports.com estimates based on public filings, the U.S. regulated online sports market generated approximately $150 billion in cash bets handled in 2024 alone across the 32 states permitting digital gambling.
“FanDuel Sportsbook and DraftKings Sportsbook maintain duopoly status across the U.S., combining for approximately 75% of the market in total dollars wagered as well as revenue generated,” says Adam Small, a 20-year veteran of the gaming industry and CEO and co-founder of Third Planet Affiliates, which owns and operates iGaming news media publication CasinoReports.com and sports betting-focused Props.com.
Small said there’s still room for digital gambling to grow in the next few years, as Texas, California and a more open Florida would provide “a large jolt” to the digital sports gambling market. “Plus, states like Minnesota and Georgia are continually flirting with legalization, and Missouri will soon join the ranks, probably in time for the 2025 football season,” he says.
Where there’s gambling, there’s cash, attracting investors to publicly traded companies that dominate the sports wagering realm.
“Financially, FanDuel and DraftKings are currently leading the online sports gambling market, benefiting from strong brand recognition, user-friendly apps and aggressive marketing,” says Nick Slade, co-founder and chief content officer at Cipher Sports Technology Group.
However, the long-term outlook could favor casino-backed sportsbooks like BetMGM, Caesars and WynnBet. “The casinos have something the digital-only operators lack: tangible rewards that enhance user stickiness,” Slade says. “While FanDuel and DraftKings rely on free bets and short-term incentives to retain customers, companies like MGM and Caesars can offer hotel stays, luxury dining, event tickets and even full-blown vacations, all things that create lasting customer loyalty.”
That scenario shines a light on a major industry challenge: profitability. “Most sportsbooks are operating at a loss due to customer acquisition costs,” Slade says. “Those with diversified revenue streams (hotels, casinos, resorts) have a better chance at long-term success than companies burning cash solely on promotions and marketing.”
What sports gambling stocks offer the biggest paydays for stock market investors? Here are a few potential winners that have started the year with lackluster performance amid market uncertainty but could recover handsomely:
| Gambling Stock | YTD performance* |
| DraftKings Inc. (ticker: DKNG) | +3.6% |
| Flutter Entertainment PLC (FLUT) | -6.5% |
| Entain PLC (OTC: GMVHF) | -0.3% |
| MGM Resorts International (MGM) | -5.7% |
| Penn Entertainment Inc. (PENN) | -12.2% |
| Caesars Entertainment Inc. (CZR) | -12.9% |
| Wynn Resorts Ltd. (WYNN) | -1.0% |
*As of the March 19 market close.
DraftKings Inc. (DKNG)
Year-to-date performance: +3.6%
Launched in 2018, DraftKings sits near the U.S. digital sports gambling throne. Yet, challenges persist for the company. Fourth-quarter reporting numbers came in lower than expected, and the company recently took out a $500 million loan from institutional investors for general company operational purposes.
Industry analysts like the stock, however. Needham’s Bernie McTernan recently touted the company’s estimated earnings before interest, taxes, depreciation and amortization (EBITDA) of $1 billion, which he said could easily double to $2 billion in the next two years. McTernan raised his one-year DKNG price target from $60 to $65. The stock is trading around $38 per share as of March 20.
Still, keep a sharp eye on the stock’s underlying fundamentals before investing. “It’s great for short-term momentum but may struggle with long-term sustainability,” says Slade.
Flutter Entertainment PLC (FLUT)
YTD performance: -6.5%
Flutter, the parent company to FanDuel, is the world’s largest online-led sports betting and gaming operator and has the makings of a solid “long haul” gambling stock.
“FLUT should continue to generate long-term earnings growth as the global online gambling market continues its secular expansion,” says Gustavo Pifano, assistant vice president at Gabelli Funds.
FanDuel has maintained a commanding market leadership position with an online gross gaming revenue market share of 36%, including a 43% share in sportsbooks and 26% in iGaming as of the fourth quarter of 2024, Pifano says. “Plus, Flutter’s proprietary pricing and risk-management systems have driven product innovations around higher-odds parlay bet offerings, which support structurally higher win margins,” he adds.
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Entain PLC (OTC: GMVHF)
YTD performance: -0.3%
Entain is a sports betting and casino gambling giant with rising brands like Coral, Crystalbet, Eurobet, Ladbrokes, and Sportingbet, Bwin and PartyCasino.
“Like Flutter, U.K.-based Entain has a long operating history and profitable businesses outside the U.S., which, combined with the U.S. growth opportunity, make it an attractive equity investment,” Pifano states. Entain, which also owns 50% of top-tier U.S. gambling company BetMGM, has recently had another change in management, which bears watching. “They’ve also announced a potentially sizable regulatory issue at their Australian business, which was disappointing given its core operations were starting to turn around,” Pifano says.
When analyzing gambling companies, Gabelli first and foremost focuses on fundamentals and cash flow. “Market share can be taken with promotional intensity, but players are retained with the best product, and a big focus in that area now is the breadth of parlay betting options customers can have,” Pifano says. “We’re monitoring potential risks from new and higher taxes in the U.S. and competition from prediction markets, but diversified operators like Flutter and Entain will have the scale and product development capabilities to address the challenges.”
MGM Resorts International (MGM)
YTD performance: -5.7%
Las Vegas-based MGM Resorts is a Wall Street analyst favorite, with a consensus “strong buy” from professional market watchers who’ve set a per-share price target of $48. The stock is trading around $33 per share as of March 20. MGM has secured a worldwide brand, is comfortably ensconced in the middle of Las Vegas and is a mecca for global gamblers, with $17.2 billion in annual sales.
MGM Resorts has also built a go-to reputation as an online gambling destination. MGM’s eponymous property is the biggest resort in Vegas, which is saying something. “MGM’s omnichannel approach is a huge competitive advantage,” Slade says. “BetMGM has a growing online presence, and the company can lure bettors into its massive resort empire.”
Penn Entertainment Inc. (PENN)
YTD performance: -12.2%
Founded by Peter M. Carlino in 1982 and headquartered in Wyomissing, Pennsylvania, Penn Entertainment made headlines with its 36% acquisition of Barstool Sports in 2020, buying up the rest of the company in 2023. The same year, Penn entered into a $2 billion agreement with ESPN to rebrand and relaunch the gaming platform ESPN Bet, making Penn the exclusive gaming partner of ESPN.
“Now that Penn is aligned with ESPN Bet, it’s received a brand boost and potential user reach,” Slade says. “The question is whether it can truly leverage ESPN’s audience effectively, something it has struggled to do since the launch.”
Penn also brings a profile-raising business model to the gambling sector, giving the company access to more consumers. “The ESPN Bet deal was a game changer for Penn,” says Derek Simon, owner of Database Betting and the former editorial director for US Racing. “ESPN Bet launched in 18 states, leveraging ESPN’s 200 million monthly users. Now, the company’s unique hybrid business model (online plus physical casinos equals diversification) allows Penn to focus on profitability rather than aggressive marketing.”
Caesars Entertainment Inc. (CZR)
YTD performance: -12.9%
Reno, Nevada-based Caesars conjures images of Frank Sinatra and his Rat Pack knocking back martinis and packing in audiences on the Vegas Strip. But Caesars has easily transitioned into the online age via Caesar Digital while keeping one foot in its bread-and-butter casino and resort business. The company has firmly established its gaming and resort brand overseas and is making news at home by adding two new board directors backed by Wall Street firebrand Carl Icahn. The Icahn team should help Caesars maximize its digital gaming brand while also benefiting from Icahn’s long history of building share-price appreciation in underperforming companies.
Gaming analysts have embraced the move, with Barclays analyst Brandt Montour holding his “buy” rating on CZR shares with a $55 price target. The stock closed at $29.11 per share on March 19. Simultaneously, Caesars is aggressively pushing its loyalty program, “offering bettors real-world rewards at its casinos and resorts,” Slade says.
Wynn Resorts Ltd. (WYNN)
YTD performance: -1%
Founded in 2002 by casino kingpin Steve Wynn, Wynn Resorts is another Vegas-based, long-established player in the design, development and operation of destination casino resorts. The company sports a $9 billion market cap and a suitable 1.2% dividend yield, as well as historically strong revenue growth and robust market expansion (its Wynn Macau is a “bucket list” destination for global gamblers).
The company also emphasizes high user engagement, which ensures strong brand loyalty and retention — all tenets of successful gambling companies. Its most recent quarterly numbers, released in February, show WYNN outperforming, with earnings per share easily topping analyst estimates at $2.42 and operating revenue doing the same at over $1.8 billion.
On Wynn’s quarterly earnings call with analysts, CEO Craig Billings cited “strong quarterly performance in Las Vegas on very tough comparables,” while noting significant progress on its Wynn Al Marjan Island project in the United Arab Emirates.
“We are confident the resort will be a ‘must see’ tourism destination in the UAE and will support strong long-term free cash flow growth,” Billings states.
Takeaway on Digital Sports Gambling Stocks
Investors can embrace a short- and long-term outlook on gambling stocks right now, striking a balancing act that can cash in for portfolio builders.
“In the short term, FanDuel and DraftKings are likely to maintain their lead due to their digital expertise and aggressive customer acquisition strategies,” Slade says. “However, over time, the ability to offer tangible rewards could become the deciding factor in retaining bettors.”
Slade notes that as more players realize they can earn vacations, resort perks and VIP experiences by betting with brands like BetMGM and Caesars, market share could shift toward these casino-backed sportsbooks. “The long-term winners in sports gambling will be the companies that successfully integrate digital convenience with real-world loyalty incentives,” he says.
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7 Best Sports Gambling Stocks for March Madness originally appeared on usnews.com
Update 03/20/25: This story was published at an earlier date and has been updated with new information.
