10 Best Sports Betting Stocks to Buy Now

7. Churchill Downs Incorporated (NASDAQ:CHDN)

Number of Hedge Fund Holders: 31       

Churchill Downs Incorporated (NASDAQ:CHDN) specializes in online wagering, casino gambling, horse racing, and racing bets. TwinSpires, a subsidiary, provides online horse racing betting.

Over the course of more than a decade, the company has grown its revenue and net income steadily across three business units: live and archived racing from twelve venues, including the Kentucky Derby’s home track, Churchill Downs. More than 42% of the entire yearly revenue is generated by this unit.

Through its Twin Spires platform, Churchill Downs Incorporated (NASDAQ:CHDN) principally concentrates its sports betting business on horse racing. The firm initially experimented with wider sports betting, but two years ago it decided to cease operations, citing expensive overhead and fierce competition from significant operators like DraftKings and FanDuel. Twin Spires now handles horse race betting completely and offers these industry leaders B2B data services. This strategy change has paid off, as Twin Spires now accounts for 12% of adjusted EBITDA and around 19% of CHDN’s overall revenue.

The London Company Mid Cap Strategy stated the following regarding Churchill Downs Incorporated (NASDAQ:CHDN) in its Q2 2024 investor letter:

“Churchill Downs Incorporated (NASDAQ:CHDN) – CHDN outperformed in 2Q as recent results exceeded expectations, and the 150th Kentucky Derby delivered growth above expectations as well. Additionally, in our view the value creation from recent acquisitions is becoming clearer to the market. We continue to view CHDN as a high-quality business run by a management team with a track record of astute capital allocation and a strong pipeline of opportunities for continued growth.

Increased: Churchill Downs (CHDN) – The increase reflects our confidence in the long-term outlook for the business and our desire to reduce cash in the portfolio.”

CHDN is one of the Best Sports Betting Stocks to Buy Now. Ken Griffin’s Citadel Investment Group is the largest shareholder in the company, with 1,195,081 shares worth $166.83 million.