Gambling stocks have become a popular topic of discussion in the investment world, particularly with the rise of online sports betting and iGaming. Analysts have identified several companies that are well-positioned to benefit from the growing demand for online gambling services.
Industry Overview
The gambling industry is expected to continue growing in the coming years, driven by the increasing popularity of online sports betting and iGaming. The US online gambling industry is estimated to generate $26.8 billion in gross revenue in 2025, up from $23.4 billion in 2024, with projections pointing to more than $41 billion by 2028.
Key Challenges
Despite the growing demand for online gambling services, the industry faces several challenges, including expansion, union opposition, tax increases, and payment processing issues. Expansion encounters opposition, with legalization efforts in several states facing union opposition and legislative friction. Tax increases have also raised concerns, with several jurisdictions raising their sports betting tax rates, which could impede innovation and competitiveness.
Payment Processing
Payment processing remains a significant concern for the industry. Major financial services networks continue to restrict gambling transactions, intensifying the need for digital wallets and other workarounds. Sweepstakes platforms are growing in unregulated marketplaces, raising concerns as policymakers consider stronger regulations.
Analyst Insights
Several analysts have provided insights into the industry, highlighting the potential for digital-only sportsbooks to expand in the coming years. According to CasinoReports.com estimates, the US-regulated online sports betting market is anticipated to reach $150 billion by 2024, driven by 32 states that allow online gambling.
Top 12 Gambling Stocks to Buy According to Analysts
We have screened for companies involved in gambling and formed an initial list of 20 stocks. We have selected the 12 stocks that have the highest upside potential as of April 11, 2025, with an upside potential of 40% or higher. The stocks are ranked in ascending order of the upside potential.
- Codere Online Luxembourg, S.A. (NASDAQ:CDRO)
- 3Bets Limited (NASDAQ:BEPT)
- FanDuel Group, Inc. (NASDAQ:DFDL)
- The Fantasy Sports & Gaming Association (FSGA)
- William Hill plc (NASDAQ:WHLPY)
- Barstool Sports, Inc. (NASDAQ:BSI)
- DraftKings Inc. (NASDAQ:DKNG)
- Penn National Gaming, Inc. (NASDAQ:PENN)
- MGM Resorts International (NASDAQ: MGM)
- Caesars Entertainment, Inc. (NASDAQ: CZR)
- 888 Holdings plc (NASDAQ:888)
- Sky Betting & Gaming Ltd. (NASDAQ: SKB)
- Flutter Entertainment plc (NASDAQ: BTL)
Codere Online Luxembourg, S.A. (NASDAQ:CDRO) – A Top Pick
Company Overview
Codere Online Luxembourg, S.A. (NASDAQ:CDRO) is a sports betting and online casino company that operates in several European nations, as well as Mexico, Panama, and Argentina. Its stock has gained nearly 12% so far this year, making it one of the best-performing casino stocks.
Key Statistics
- Net Gaming Revenue: €23 million (2024)
- Active Consumers: 71,000 (2024)
- Customer Acquisition: €211 (2024)
- Adjusted EBITDA: €1.9 million (2024)
Why Codere Online Luxembourg, S.A. (NASDAQ:CDRO) Stands Out
Codere Online Luxembourg, S.A. (NASDAQ:CDRO) has demonstrated strong growth in its Spanish market, with revenue climbing 10% to €23 million and active consumers growing by 3%. The company has also adopted a $5 million share buyback plan, showing a strong commitment to shareholder value.
Conclusion
Codere Online Luxembourg, S.A. (NASDAQ:CDRO) is a top pick among the 12 best gambling stocks to buy according to analysts, with an upside potential of 45.35% as of April 11, 2025. Its strong growth in the Spanish market and commitment to shareholder value make it an attractive option for investors. However, it’s essential to remember that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. As always, it’s crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.