10 Best Gambling Stocks To Buy According to Hedge Funds

6. MGM Resorts International (NYSE:MGM)  

Number of Hedge Fund Holders: 46  

Market Capitalization as of December 3: $11.40 Billion  

MGM Resorts International (NYSE:MGM) is one of the world’s largest casino and hospitality companies, with properties spanning the U.S. and Asia. The company operates casinos, hotels, and entertainment venues, serving high-end and casual gamers alike. MGM Resorts International (NYSE:MGM) has aggressively expanded its BetMGM platform, a joint venture with Entain, into the online sports betting and iGaming markets. MGM Resorts International (NYSE:MGM) has taken strategic initiatives, including asset sales and reinvestments, to streamline operations while capitalizing on the digital gambling boom.

MGM Resorts International (NYSE:MGM) has strengthened its collaboration with Marriott International, achieving significant milestones in their long-term strategic partnership announced in July 2023. On October 21, the two companies revealed plans to bring the W Hotels brand to Las Vegas. The agreement includes 17 MGM resorts with over 40,000 rooms across Las Vegas and other U.S. locations.

Financially, MGM Resorts has improved its position by reducing net debt and increasing free cash flow (FCF), which reached $944 million by Q3. The company’s revenue for the first nine months of fiscal 2024 rose 9%, contributing to record results in Q3 with net revenue of $4.18 billion, a 5% year-over-year increase. This growth was fueled by higher prices and strong occupancy rates. Internationally, MGM China achieved a 14% year-over-year growth in net revenue during Q3 2024, underscoring the strength of its Macau operations.