In this article, we will discuss: 10 Best Sports Betting Stocks to Buy Now.
A U.S. Supreme Court decision in 2018 set off a sports betting boom that legalized wagering in 38 states and the District of Columbia. North Carolina legalized sports betting on March 11, and within the first 12 hours of the law’s implementation, the state wagered a remarkable $23.9 million. Of these, 30 states allow online sports betting, so if you’re within state lines, the thrill is only a click away. While most states have a minimum age of 21, a handful allow 18 or older.
Consumers can now bet from anywhere as long as they are physically present in the state due to the growth of online platforms. As a result, Americans legally wagered a record $119.84 billion on sports in 2023, up 27.5% from 2022, per the American Gaming Association’s Commercial Gaming Revenue Tracker, ushering in a new era for sports gambling in the US. Consequently, the sports betting industry’s revenue grew to $10.92 billion, a 44.5% YoY increase from 2022. The expansion was predominantly driven by continuing maturation in most existing markets as well as some new ones, including Massachusetts and Ohio. The trend is expected to continue, and in the second quarter of 2024, American sports wagerers wagered $31.75 billion. Revenue from it was $3.16 billion for the quarter, increasing 35.3% from the previous year.
While the United States is at the top of the Biggest Gambling Countries in the World, there are still 12 states in the US that do not allow legal sports betting, including California, Texas, Idaho, Utah, Minnesota, Missouri, Alabama, Georgia, South Carolina, Oklahoma, Alaska, and Hawaii.
Nonetheless, sports betting is one of the fastest-growing industries in the world. Jane Bokunewicz, director of the Lloyd Levenson Institute at New Jersey’s Stockton University, which studies the gambling industry, points out that legal sports betting could be appealing to people with limited discretionary budgets since it offers a new and inexpensive form of entertainment.
Goldman Sachs Research also states that the U.S. sports betting market is expected to grow significantly and, once it reaches maturity, could reach $45 billion each year. This growth will be prompted by new state openings and a growing share of consumer spending on sports betting, per Ben Andrews, head of leisure and travel research at Goldman Sachs in Europe, where legal sports betting has a longer history.
When it comes to consumer spending on sports betting, gambling interest reflects a sport’s popularity, with NFL football dominating in the United States. In 2023, over 73 million Americans said they planned to bet on the NFL season, which is almost 60% more than the previous season, according to a survey conducted by the American Gaming Association.
Globally, nearly one-third of people worldwide engage in sports betting at some point in their lives, based on the TGM 2022 Global Gambling and Sports Betting Survey. In 2021, 17% of people bet on sports with friends (mainly on football and horse racing), while 35.44% bet on sports, and 20.2% bet online/through applications.
According to Deloitte’s 2024 Sports Industry Outlook, generative AI is projected to dramatically impact sports betting in the next 12-18 months. The way sports fans interact with sports betting will probably undergo a revolution because of innovations in domains like personalized betting experiences, odds calculation, real-time data analysis, and improved prediction models.
With that said, here are the 10 Best Sports Betting Stocks to Buy Now.
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Our Methodology
We sifted through holdings of sports betting ETFs and online rankings to form an initial list of 20 sports betting stocks. Then we selected the 10 stocks that were the most popular among institutional investors. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)
10 Best Sports Betting Stocks to Buy Now
10. Rush Street Interactive, Inc. (NYSE:RSI)
Number of Hedge Fund Holders: 27
The company Rush Street Interactive, Inc. (NYSE:RSI) is creating, delivering, and managing regulated online gaming platforms. In addition to running online sports wagering in Indiana, Colorado, and Illinois, it also runs real-money online casinos and sports wagering in New Jersey and Pennsylvania.
Established in 2012, the company operates the BetRivers sportsbook. The Spanish football league La Liga and several professional sports teams are partners of the company.
The firm was the first to launch online gambling in Indiana, Colorado, and Illinois. In addition to 15 states, RSI now runs online sportsbooks in Ontario, Mexico, and Colombia.
In addition to numerous regulated overseas marketplaces, Rush Street Interactive, Inc. (NYSE:RSI) operates in fifteen U.S. states. It has received praise for both its responsible gaming policies and customer support.
The renowned American sports betting and gaming company recently improved the iRush Rewards Loyalty Program and now has a new tiered system, a more straightforward points structure, and longer benefits retention for customers of PlaySugarHouse and BetRivers brands.
In Q2 2024, a noteworthy 34% YoY growth in revenue to $220.4 million and an impressive improvement in EBITDA, which stood at $21.4 million, were reported by RSI. The company’s aggressive growth of its iCasino and sports betting platforms, together with effective player acquisition and retention techniques, are credited with its recent success.
Macquarie analyst Chad Beynon maintained an Outperform rating on the shares and upgraded the company’s price target on Rush Street Interactive from $11 to $14. The analyst notes that the company recorded a 50% EBITDA beat in Q2 with robust user growth.
According to the company, Rush Street’s exposure to American online gaming and its presence in the markets of Ontario and Latin America put it in a strong position for ongoing expansion.
RSI is one of the Best Sports Betting Stocks to Buy Now.
9. Genius Sports Limited (NYSE:GENI)
Number of Hedge Fund Holders: 28
Genius Sports Limited (NYSE:GENI) is a sports data rights aggregator that supplies live sports data to sportsbooks for over 200,000 events worldwide. Official data rights to leagues such as the NFL, FIBA, MLB, and most notably the EPL have been locked up by GENI through at least 2028.
The primary function of the company’s technology is to gather, organize, and disseminate real-time sports data and analysis to different stakeholders, including media outlets, sportsbooks, and leagues. This is a duopolistic industry that GENI and Sports Radar share, though each company usually has exclusive rights to the sports or leagues that they work with.
The sports data rights aggregator company is well-positioned to continue to gain from the increased legalization of sports betting and the expansion of in-game betting in the US.
Voss Capital stated the following regarding Genius Sports Limited (NYSE:GENI) in its first quarter 2024 investor letter:
“We expect the company to maintain >20% organic revenue growth with >50% incremental EBITDA margins over the next few years. If correct, we believe we are paying < 10x 2027 FCF at today’s market prices.
GENI’s new BetVision was only recently launched in September 2023, and it enables in-game bets for the NFL with low latency as well as calculating and displaying real-time analytics and odds. In-game betting makes up 25% – 30% of bets in U.S. football vs 80%+ in the more mature UK soccer betting market. We believe NFL games, which comprised 96 out of the top 100 viewed television programs last year, lend themselves even more to in-game betting with more potential variables/events than soccer. Key to the thesis is that GENI’s take rate for in-game bets (5% – 6%) is 3x higher than the take rate on facilitating pre-game bets (1.5% – 2.0%) and comes at zero incremental cost to GENI, thus is highly margin accretive with a long runway for increased penetration to catch up to more mature regions like the UK:
“As we continue to increase the in-play betting, we directly benefit from this higher revenue share at no incremental cost, therefore, contributing to our profitability at near 100% margin.” – GENI November 13th, 2023 earnings call
It is notable that GENI has beaten and raised guidance for the last nine quarters in a row, establishing near bulletproof credibility in our minds that management does what they say will do, and yet the market remains highly skeptical of their visibility on rights costs and the scalability of the NFL and UK soccer rights that GENI pays for and recently extended, thus creating the attractive buying opportunity recently.
Our base case price target of $11.00 (>110% upside) by late 2026 uses 12x 2026 EBITDA. 12x seems conservative in the context of what we anticipate being a 40%+ EBITDA CAGR over the next few years and ultimately a 30%+ EBITDA margin business at maturity in a duopolistic industry structure. Longer term, we believe the upside is much greater.”
Citing Genius Sports Limited’s solid Q2 2024 performance and development potential, Macquarie analyst Chad Beynon maintained a “Buy” rating for the company. The company exceeded revenue and EBITDA estimates due to its growth in the betting area, margin expansion, and raised 2024 guidance. Chad also points out that, in spite of strong sales and EBITDA growth, the company is valued lower than its peers due to an exclusive arrangement that runs through the 2028–2029 season with Football DataCo.
Genius Sports is anticipated to gain momentum throughout the NFL season, putting it in a better position to benefit from the expanding sports betting market in North America, especially with its BetVision offering. In addition, the business is well-positioned in a developing industry.
It is one of the Best Sports Betting Stocks to Buy Now. Richard Mashaal’s Rima Senvest Management is the largest shareholder in the company, with 6,727,424 shares worth $36.66 million.
8. PENN Entertainment, Inc. (NASDAQ:PENN)
Number of Hedge Fund Holders: 30
PENN Entertainment, Inc. (NASDAQ:PENN) specializes in sports betting and offers integrated entertainment and sports content. The Northeast, South, West, Midwest, and Interactive are the company’s five operating segments.
It runs an online sportsbook and casino under the Score Bet Sportsbook and Casino and Hollywood Casino, L’Auberge, ESPN BET, and iCasino brands. Moreover, the company has more than 43 properties in 20 states, providing iCasino in five and online sports betting in 18 jurisdictions.
Greenlight Capital stated the following regarding PENN Entertainment, Inc. (NASDAQ:PENN) in its first quarter 2024 investor letter:
“We established a new medium-sized position in PENN Entertainment, Inc. (NASDAQ:PENN) at an average price of $22.69 per share, but, for reasons discussed below, the shares fell to $18.21 by quarter-end. s referenced above, we established a medium-sized position in PENN, an operator of regional casinos. PENN’s current enterprise value is just over $4.3 billion, and based on an 8-12x multiple of free cash flow, we value their land-based casinos between $4.3 billion and $7 billion. PENN also competes in online gaming, particularly sports betting, and we believe the market ascribes a substantial negative value to that effort. To be fair, the online segment has a checkered history. In 2020, PENN acquired a minority stake of Barstool Sports, and three years later agreed to purchase the rest, for a grand total of $551 million. That acquisition was a complete failure, and the company wound up abandoning the investment. It also spent $2 billion in 2021 to acquire Score Media and Gaming to establish a better online sports betting platform. Last year, it entered into a deal with ESPN to launch and operate ESPN BET.
Successful sports betting franchises can have substantial value. DraftKings is the leader and is valued at over $20 billion. Through ESPN BET, PENN aspires to achieve top-three status in the industry. Given that the market is ascribing negative value to ESPN BET, it’s fair to say that after the Barstool fiasco, investors have serious doubts about the company’s strategy and management’s competence to execute. Were the market to credit PENN with merely 15% of DraftKings’ value, that segment alone would be worth $20 per share.
PENN launched ESPN BET last November. The launch was largely successful and led them to achieve a top-three user share by adding one million customers in less than two months. This result was much better than expected and enabled PENN to project turning a profit a year earlier than its previous guidance. To accomplish this, the company spent more on upfront marketing to acquire customers than it had indicated. Though we had believed the rationale for increased spending was well understood, the market focused on the higher spend and punished the shares.”
In its second-quarter 2024 results, the company reported record net gaming revenue in its Interactive business as well as consistent success in the face of fresh competition and a difficult macroeconomic environment.
Craig-Hallum raised his recommendation for PENN Entertainment from Hold to Buy with a $30.00 price target. Aside from the growth drivers found in its collaboration with ESPN Bet and its future retail initiatives in 2024 and 2025, the company’s assets’ value and the favorable market conditions drove the upgrade. However, Raymond James downgraded PENN Entertainment from Outperform to Market Perform recently, citing worries about the profitability of the company’s digital operations as well as the impact of activist pressure and rumors of mergers and acquisitions on the stock.
Notwithstanding the obstacles posed by macroeconomic conditions and rivalry, PENN is steadfast in its pursuit of value enhancement and committed to its present plan of action, which makes it one of the Best Sports Betting Stocks to Buy Now.
Parag Vora’s HG Vora Capital Management is the largest shareholder in the company, with 14,500,000 shares worth $280.65 million.
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.
6. Boyd Gaming Corporation (NYSE:BYD)
Number of Hedge Fund Holders: 33
Boyd Gaming Corporation is a gaming corporation that operates 28 land-based casinos in the United States, including establishments in the Midwest, the South, and Las Vegas. The business is divided into four divisions: Midwest & South, Downtown Las Vegas, Las Vegas Locals, and Online. Boyd Gaming participates in the sports betting market through its online division, which offers digital wagering services through Boyd Interactive and Online Sports Betting platforms.
After the COVID-19 pandemic, Boyd was able to successfully boost the company’s margins, which has resulted in the stock trading higher. Recently, in the second quarter of 2024, Boyd Gaming Corp. produced a strong performance, with 5.51% revenue growth YoY and nationwide operations meeting forecasts. The online segment saw solid revenue growth by 52% YoY and EBITDA growth, with higher expectations for the full year mainly because of the solid partnership with FanDuel.
The American gaming and hospitality company owns a 5% strategic stake in FanDuel, a well-known sportsbook brand that Boyd partners with on its casino facilities and has a strong online presence.
CEO Keith Smith states in the Q2 2024 earnings call:
“Our 5% equity interest in FanDuel remains a valuable strategic asset for our company that continues to grow in value as we participate in the ongoing growth of sports betting nationwide.”
Consequently, the company has raised its full-year EBITDAR projections for the online segment from $65 million to $70 million.
Hence, analysts are bullish on the stock and have given it a “Buy” rating. The average 12-month price objective set by the 12 analysts for Boyd Gaming stock is $91, which is a 53.15% increase from the stock’s current price of $59.42.
Parag Vora’s HG Vora Capital Management is the largest shareholder in the company, with 4,000,000 shares worth $220.40 million.
5. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 42
The leading integrated casino provider of digital sports betting and gaming services is Wynn Resorts, Limited (NASDAQ:WYNN). Wynn Interactive Ltd., the majority-owned and managed digital gaming section of Wynn Resorts, Limited, operates WynnBET, the top sports betting app in the United States. The company has considerable experience operating regulated sports betting, including online sports betting in Nevada.
However, in a number of states, the company has closed its online sports betting platform WynnBET because of unclear legal regulations and high marketing expenses.
With a buy rating on the shares, Seaport Research dropped its price target for Wynn Resorts from $116 to $114. The firm’s Q2 2024 results were “mixed,” with Macau missing predictions, Boston meeting expectations, and Las Vegas exceeding them as per the analyst.
Overall, the WYNN is in good financial standing, and throughout the last six quarters, its revenue has increased steadily.
By utilizing its robust brand and gaming know-how to capitalize on the expanding digital entertainment and sports betting market, Wynn Resorts, Limited (NASDAQ:WYNN) has the chance to grow Wynn Interactive. This expansion, especially in areas where it has a strong physical presence, can increase its customer base and diversify its services.
The average 12-month price objective for Wynn Resorts stock, which has a “Strong Buy” rating from 14 analysts, is $118.14, representing an increase of 56.89% from the firm’s current price of $75.30.
Robert M. P. Luciano’s VGI Partners is the largest shareholder in the company, with 724,700 shares worth $64.86 million.
4. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 44
Among the largest operators of casinos in Macau and the United States is MGM Resorts International (NYSE:MGM). It also owns BetMGM in partnership with Entain of Britain. As of the end of the second quarter of 2024, BetMGM reported having a 13% market share in sports betting and iGaming in the United States and Ontario, Canada, and this could possibly significantly benefit the gaming industry.
In an effort to secure an iGaming and sports betting license in Brazil, MGM recently revealed that it has established a new business venture with Grupo Globo, a Latin American media organization. The new business will debut under the BetMGM brand in early 2025 if it is approved later this year.
The purchase of LeoVegas, a Swedish mobile gaming company and provider of online casino and sports betting services, in 2022 and MGM’s 50% stake in BetMGM demonstrate the company’s dedication to growing its online gaming business. In addition to diversifying MGM’s revenue streams, these digital endeavors put the firm in a position to profit from the expanding online gaming and sports betting industries.
Citing solid Q2 2024 performance across all segments and a bullish outlook for the company’s International Digital division, BTIG analyst Clark Lampen has reaffirmed a “Buy” rating on MGM Resorts with a $52.00 price objective. JMP Securities also maintained a “Buy” rating with a price objective of $57.00.
MGM Resorts International (NYSE:MGM)’s diversification is contributing to the expansion of its revenue stream and its client base, which are increasing the company’s earnings and margins.
It is one of the Best Sports Betting Stocks to Buy Now. Keith Meister’s Corvex Capital is the largest shareholder in the company, with 5,859,478 shares worth $260.40 million.
3. Flutter Entertainment plc (NYSE:FLUT)
Number of Hedge Fund Holders: 53
The massive sports betting and gaming company Flutter Entertainment plc (NYSE:FLUT) operates in the US, Australia, the UK, and Ireland. It manages FanDuel, the most well-known online sportsbook in the United States.
Flutter Entertainment plc (NYSE:FLUT) estimated that it commands 47% of the US online sportsbook industry and 23% of the iGaming market as of the second quarter of 2023. In 2023, the quickly increasing US market accounted for approximately 37% of revenues, while the UK, Australia, and several European countries represented more mature operations.
Large worldwide online gambling sites, including Sky Betting & Gaming, Betfair, Sportsbet, and PokerStars, are also run by Flutter.
In 32 states as well as the District of Columbia, the company runs FanDuel-powered online sportsbooks. Leading the U.S. sportsbook industry, FanDuel is responsible for 95% of Flutter’s growth and significant revenue gains, which are bolstered by smart alliances and growing market share.
Flutter Entertainment’s Q2 2024 earnings were enhanced by FanDuel’s 51% share of U.S. net gaming revenue, and the NFL and NBA seasons are expected to fuel additional growth.
Flutter Entertainment CEO Peter Jackson said the following in the Q2 2024 earnings report:
“Our US performance was excellent in new and existing states reflecting our disciplined approach to customer acquisition and our best-in-class product, which offers our sportsbook customers the best pricing in the market. We continue to make improvements to our proprietary product offering which drove the proportion of live betting handle to be more than 400 basis points higher than last year during the NBA playoffs, while we also increased our MLB parlay penetration.”
Following an update to the firm’s outlook, FLUT stock was up 8.2%. It now projects a 3% rise in U.S. revenue to $6.2 billion in 2024. Additionally, a 20% growth in company revenue from 2023 is anticipated.
Even though the more developed markets come with greater regulatory risks, the company’s foreign activities offer consistent cash flows to support large-scale US investments. Flutter is poised for long-term growth in the fast-growing online gaming industry due to its transition to trading on the NYSE, which has increased its penetration into the US investor pools and international reach.
2. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 54
Although Caesars Entertainment, Inc. (NASDAQ:CZR) is best known for its Caesars Palace casino in Las Vegas, it currently runs more than 50 casinos around the country following its acquisition by Eldorado, which adopted Caesars name. Following that, the company bought William Hill, a British gambling company pushing it into the US online sportsbook industry. It changed the name of William Hill’s operations to Caesars Sportsbook.
The company has been using nationwide advertising to promote its online sportsbook aggressively, which has helped it capture a double-digit market share. However, it also resulted in large losses for the company, especially after facing big setbacks from the pandemic, leading management to adopt a more tactical and focused approach to future ad campaigns as additional states legalize sports betting.
The digital division of Caesars Entertainment, which offers sports betting, experienced a positive adjusted EBITDA of $5 million in Q1 2024 and an 18.5% year-over-year gain in revenue to $282 million, turning around a previous loss.
CZR now provides sports betting in 32 North American jurisdictions, 26 of which allow wagering on mobile devices.
In Q2 2024 earnings Eric Hession President, Caesars Sports and Online Gaming stated:
“Net revenues in our sports betting segment increased 19% year-over-year, driven by flat handle and hold of 7.2% which improved 80 basis points versus last year. Our product on the sports side continues to improve and our customers are reacting positively to our increasing mix of parlay and in-game offerings. We continue to drive growth in our parlay wagers with the percentage of that type of wager growing 380 basis points year-over-year, consistent with the trends we’ve observed throughout the year.
In July, we closed on the acquisition of ZeroFlucs a leading sports betting technology company based in Australia. ZeroFlucs team has already started contributing to the product innovation and driving hold improvements and customer engagement. In our eye gaming segment net revenues grew 50% for the second consecutive quarter driven by a 33% increase in volume and a 30 basis point year-over-year improvement in hold. Caesars Palace Online continues to grow as a percentage of our total iCasino revenues. We’re actively enhancing the product offerings by adding new and exciting game content including exclusively designed Caesars Themed Games.
We successfully completed the acquisition of WynnBet’s operations in Michigan in June, which sets the stage for the introduction of our new iGaming app, which will be branded the Horseshoe in early Q3. As we head to the back half of the year, we continue to be optimistic about the progress we’re making in both sports and iCasino and I believe we are well set up for a strong finish to the year”.
Daniel Politzer, an analyst at Wells Fargo, raised his recommendation on Caesars Entertainment, Inc. (NASDAQ:CZR) Entertainment to Buy with a $56.00 price target, noting the company’s outstanding Q2 financial results, anticipated rise in EBITDAR, and potential asset sales. The company’s strong free cash flow and consistent growth are apparent in the positive forecast.
It is the Best Sports Betting Stocks to Buy Now and 13 analysts have collectively rated the stock as a “Buy.” The average price objective of $53 indicates a possible gain of 42.63% from the current stock price of $37.16.
Parag Vora’s HG Vora Capital Management is the shareholder in the company, with 3,300,000 shares worth $131.14 million.
1. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 56
As a pioneer in daily fantasy sports, DraftKings Inc. (NASDAQ:DKNG) was founded in 2012. Then, in response to a 2018 Supreme Court decision allowing states to authorize online sports wagering, the company entered the online sports and casino gambling markets. Rising to the top of the North American sports betting and iGaming business, it now shares a 70% revenue share with FanDuel.
Approximately 40% of Canadians can now access DraftKings’ online or retail sports betting in 25 states, as well as its iGaming offerings in seven states. In addition, the company creates and licenses online gaming items and runs a non-fungible token commission-based marketplace.
While adjusted EPS of $0.22 exceeded forecasts, the company announced Q2 2024 revenues of $1104 million, a 26.2% YoY rise driven by organic growth factors, and new market entries slightly missed Wall Street projections. DKNG stock was down almost 4% following the Q2 2024 results, despite decent performance.
The company improved its revenue projection for 2024, but because of higher client acquisition costs and an Illinois tax rate change, it reduced adjusted EBITDA.
By 2030, Morningstar analysts believe that the online gambling giant will be in a strong position to take advantage of the $40 billion sports betting and iGaming income opportunity in North America. Nonetheless, there is fierce rivalry amongst online gaming companies, as some states have over twenty state licenses.
Benchmark recently maintained a Buy rating on the shares and increased the company’s price objective for DraftKings Inc. (NASDAQ:DKNG) from $41 to $44. According to the analyst, DraftKings is still “a top idea for 2024.” The stock is expected to have a “strong run” until year-end, given that shares have dropped 2% thus far this year. The analyst notes that DraftKings’ improved outlook “creates an attractive entry point,” driven by greater market win margins in Q3, new user growth, traditional tax reduction techniques, and valuation contraction ahead of the NFL season.
Ravitch and Jeffrey Sine’s Raine Capital Joseph is the largest shareholder in the company, with 1,382,603 shares worth $52.77 million.
While we acknowledge the potential of the 10 Best Sports Betting Stocks to Buy Now, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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