10 Best Gambling Stocks To Buy According to Hedge Funds

8. Churchill Downs Incorporated (NASDAQ:CHDN)  

Number of Hedge Fund Holders: 37  

Market Capitalization as of December 3: $10.49 Billion  

Churchill Downs Incorporated (NASDAQ:CHDN) is a premier operator of racing, gaming, and online wagering platforms. The company is best known for the Kentucky Derby, one of the most prestigious horse race events, established in 1875. Churchill Downs Incorporated (NASDAQ:CHDN) also owns and operates casino properties and online betting platforms such as TwinSpires along with an online horse racing wagering platform in the U.S.

On November 7, Churchill Downs Incorporated (NASDAQ:CHDN) opened The Rose Gaming Resort in Virginia, featuring 1,650 historical racing machines and a 102-room hotel. Additionally, the company has announced plans for a $40-$50 million historical racing machine (HRM) entertainment venue in Calvert City, Kentucky. The upcoming 23,000-square-foot facility will house 250 HRMs, a sports bar, a sportsbook, and a simulcast center, with an expected opening in early 2026.

On October 23, Churchill Downs Incorporated (NASDAQ:CHDN) reported its third-quarter 2024 results, achieving record Q3 revenue of $628.5 million, an increase from $572.5 million in the same quarter of the previous year. The revenue growth was primarily driven by the Live and Historical Racing and Gaming segments. Alongside record revenue, the company posted a record net income of $65.4 million, up from $61 million in Q3 2023.