The online gambling industry continues to expand rapidly, driven by increasing digital adoption, regulatory changes, and market consolidation. As more countries legalize online betting and iGaming, investors are keen to find the best stocks poised for long-term growth in this evolving sector.
This analysis together with the casino experts of CasinoABC explores the top online gambling stocks for 2025, examining their financial performance, regulatory considerations, market trends, and investment strategies.
1. Flutter Entertainment (LSE: FLTR)
Pros:
- Market leader in sports betting and iGaming with strong brands like FanDuel, Paddy Power, and Betfair.
- FanDuel’s dominance in the U.S. positions Flutter as a key player in the largest growing market.
- Successful transition to a primary listing on the NYSE increases accessibility for U.S. investors.
- Strong financial growth, with U.S. earnings surging by 33% and EBITDA increasing by 176% in early 2025.
Cons:
- High exposure to regulatory risks as different U.S. states evolve their stance on online gambling.
- Strong competition from domestic and international rivals.
- Debt from recent acquisitions could impact financial flexibility.
Outlook:
Flutter Entertainment is well-positioned for continued expansion in the U.S., with FanDuel expected to further increase its market share. The company’s NYSE listing also broadens its investment appeal, making it a solid long-term pick.
2. DraftKings (NASDAQ: DKNG)
Pros:
- Achieved positive free cash flow for the first time, signaling financial maturity.
- Consistent customer acquisition and engagement growth, especially around major sporting events.
- Expansion into iGaming (online casinos) diversifies revenue streams.
Cons:
- High marketing and promotional expenses impact profit margins.
- Faces intense competition from Flutter (FanDuel), BetMGM, and Caesars.
- Dependent on regulatory expansion in states yet to legalize sports betting.
Outlook:
DraftKings has shown resilience and adaptability in the sports betting space. With a focus on increasing profitability and entering new markets, it remains a strong candidate for long-term growth. However, its valuation remains volatile, influenced by competition and changing regulations.
3. Entain plc (LSE: ENT)
Pros:
- Owns major gambling brands like Ladbrokes, Coral, and Eurobet.
- Partnered with MGM Resorts for BetMGM, a major player in the U.S. market.
- Reported 12% increase in annual core profit in 2025, with strong performance in Brazil and other emerging markets.
Cons:
- Ongoing regulatory scrutiny, especially in the U.K. and Australia.
- BetMGM’s profitability, while improving, still lags behind competitors like FanDuel.
- High reliance on traditional betting markets, which are facing increased regulation.
Outlook:
Entain’s diversified international presence provides resilience against localized regulatory changes. However, future success depends on BetMGM’s ability to gain further traction in the U.S.
4. Betsson AB (STO: BETS-B)
Pros:
- Strong European and Latin American market presence.
- Diversified online gaming portfolio including casino games, sports betting, poker, and bingo.
- Long-established company with solid financials.
Cons:
- Limited presence in the U.S. market compared to competitors.
- Faces regulatory risks in Europe as governments introduce stricter rules on gambling advertising and operations.
- Competition from larger operators in the expanding Latin American market.
Outlook:
Betsson is a stable and profitable company but lacks the aggressive expansion strategies seen in U.S.-focused competitors. Investors looking for steady returns rather than explosive growth may find it appealing.
5. MGM Resorts International (NYSE: MGM)
Pros:
- Strong presence in both land-based casinos and online gaming via BetMGM.
- Strategic partnerships with sports leagues and teams boost its online brand.
- Solid revenue growth from the online division, with BetMGM projected to become fully profitable.
Cons:
- Still relies heavily on its physical casino business, which can be affected by economic downturns.
- Needs to accelerate its online expansion to compete with FanDuel and DraftKings.
- High operating costs in both online and offline segments.
Outlook:
MGM’s online division is growing rapidly, and as BetMGM gains further profitability, it could become a more dominant player. However, its traditional casino operations may pose a risk if economic conditions worsen.
6. Aristocrat Leisure Limited (ASX: ALL)
Pros:
- Strong reputation in digital casino gaming and lottery solutions.
- Expanding into U.S. online gambling markets as more states legalize iGaming.
- Benefiting from improved trading conditions post-pandemic.
Cons:
- Lags behind major competitors in terms of U.S. sports betting exposure.
- Highly dependent on regulatory approvals for further expansion.
- Vulnerable to currency fluctuations as a global company based in Australia.
Outlook:
Aristocrat is well-positioned in the growing digital gambling space but needs to further establish itself in the U.S. online sports betting market to maximize long-term growth.
Regulatory Considerations
- U.S. Legalization: Several states are considering legalizing online gambling.
- Europe’s Tightening Rules: Stricter advertising regulations affect market strategies.
- Latin America Boom: Brazil and Mexico offer expansion potential but regulatory uncertainty remains.
- Australia’s Compliance Laws: Increased scrutiny on responsible gaming initiatives.
Investment Outlook for 2025 and Beyond
According to CasinoABC the online gambling industry remains a high-growth sector, with digital adoption driving record revenues. However, investors should consider:
- Market Leaders vs. Emerging Players: Established players like Flutter and DraftKings dominate, but smaller firms like Betsson offer niche opportunities.
- Diversification: Investing in ETFs like the Roundhill Sports Betting & iGaming ETF (BETZ) can provide exposure to multiple stocks in the industry.
- Regulatory Risks: Companies operating in multiple regions are better positioned to mitigate localized regulatory changes.
Conclusion
Investors seeking growth should focus on Flutter Entertainment and DraftKings, while those looking for stability may prefer Betsson and MGM Resorts. Regulatory changes and competition remain key factors affecting the industry’s future. Conducting thorough research and staying informed about market trends is essential for making informed investment decisions. CasinoABC discovered that regulated markets are not always profitable investments. In the Netherlands, stricter restrictions and higher taxes have led companies to exit the market at a loss.
As always, thorough research and risk assessment are crucial before investing in any stock, especially in a sector as dynamic as online gambling.