12 Best Gambling Stocks to Buy According to Analysts

6. Churchill Downs Incorporated (NASDAQ:CHDN)

Analysts’ Upside Potential as of April 11: 50.91%

Churchill Downs Incorporated (NASDAQ:CHDN) provides online betting, racing, and gaming entertainment. It is organized into three business segments: gaming, wagering services, and live and historical racing. The category Live and Historical Racing includes both live and historical pari-mutuel racing. The Wagering Services section includes revenue and expenses from pari-mutuel wagers placed through TwinSpires, the company’s retail and online sports betting operation.

In 2024, Churchill Downs Incorporated (NASDAQ:CHDN)’s net revenues jumped by 11%, and adjusted EBITDA climbed by 13%, marking a new financial record. This accomplishment was mostly attributed to the Kentucky Derby, which achieved record-adjusted EBITDA as a consequence of increased ticket sales, sponsorships, and pari-mutuel betting. The expansion initiatives at Churchill Downs Racetrack aim to further improve the Derby experience. These projects include the renovations to the Conservatory and Sky Terrace. The firm’s nearly $1.2 billion adjusted EBITDA came from HRM venues in Virginia, with plans to expand in Richmond and Henrico County.

Revenue rose by $27.3 million in the fourth quarter of 2024, or 11.07% year on year, driven by a $30.3 million surge from the opening of the Terre Haute Casino Resort, which was partially offset by a $3.0 million decline from the other wholly owned gaming locations due to regional gaming softness and increased competition. Churchill Downs Incorporated (NASDAQ:CHDN)’s strong financial position was bolstered by $688 million in free cash flow ($9.22 per share), a roughly 33% increase per share over the previous year, which makes it one of the Best Casino Stocks.