We recently compiled a list of the 10 Hottest Gambling Stocks Of 2025 So Far. In this article, we are going to take a look at where Codere Online Luxembourg, S.A. (NASDAQ:CDRO) stands against the other hottest gambling stocks.
The battle for betting supremacy is heating up in the US. As one streaming giant makes its move to acquire NFL streaming rights, another is gearing up to be the biggest bookmaker in the country. Sports betting is beginning to shape up as a major revenue generator in the country. Just 7 years ago, the betting volume in the country stood at $400 million. In 2024, a whopping $14.2 billion was spent on sports betting! People have taken a liking to enhance the thrill and excitement of live sports viewing and many companies are taking full advantage of that.
This rise in the use of bets to enhance the viewing experience is an attractive investment opportunity for investors. The gambling sector consists of many small caps that could skyrocket as the industry strengthens its foothold in the country. At the same time, there is a regulatory hurdle that the country still has to cross before putting money in gambling or casino stocks can be considered ‘investment’ in its purest form.
Amid these risks and opportunities, people are bravely backing some companies to become major players in the industry. Some of these stocks are comfortably outperforming the broader market, a trend that is likely to continue in 2025. We therefore decided to look at the stocks that are dominating the sector so far in 2025.
To come up with our list of the 10 hottest gambling stocks of 2025 so far, we only considered stocks with a market cap of at least $100 million that were outperforming the S&P 500.
A close-up of a roulette wheel spinning at an online casino.
Codere Online Luxembourg, S.A. (NASDAQ:CDRO)
Codere Online Luxembourg, S.A. (NASDAQ:CDRO) operates as a sports betting and online casino company under the Greenplay and Codere brands. The company is based in Luxembourg and has operations in multiple European countries as well as Mexico, Panama, and Argentina. Its stock is up 27.91% so far this year, outperforming the S&P 500’s 4.19% YTD returns.
There is considerable excitement leading up to the earnings call scheduled for the 26th of February. At the Q3 earnings call, the management announced a 20% YoY growth with improving margins. As a result, it is expected to meet the upper end of its 2024 guidance. While concerns about the company’s delayed 2023 annual filing and a delisting notice are valid, the market is willing to overlook these concerns expecting the company to resolve them before the deadline.
Overall CDRO ranks 4th on our list of the hottest gambling stocks of 2025 so far. While we acknowledge the potential of CDRO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CDRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
