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 DraftKings Inc. (NASDAQ:DKNG) 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 woman at a betting table paying out customers who won their sports bets.
DraftKings Inc. (NASDAQ:DKNG)
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment company with global operations. Its producers include fantasy sports, online betting, and digital lottery couriers among others. Its stock is up 43.79% so far this year, outperforming the S&P 500’s 4.19% YTD returns.
DraftKings Inc. (NASDAQ:DKNG) recently reported its Q4 earnings, registering a staggering 30% YoY growth. The most exciting part of the report was that the firm became free cash flow positive for the first time. It acquired 3.5 million new customers in the quarter, which now takes its total customers count to 10.1 million. A 42% growth in a single quarter is worth something, no wonder the stock is up 43.79% in 2025.
Looking forward to 2025, the company has some exciting plans such as the focus on acquisitions. It plans to improve the live betting experience through acquisitions like Simplebet and Sports IQ Analytics. While such acquisitions will continue to raise competition concerns in the US, that is a risk investors have gotten used to by now. The company’s 2025 guidance points to another stellar year with a 35% revenue growth at the midpoint. The DraftKinds party is only getting started and now that the company is FCF positive, a dividend or stock buyback could send the stock skyrocketing.
Overall DKNG ranks 2nd on our list of the hottest gambling stocks of 2025 so far. While we acknowledge the potential of DKNG 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 DKNG 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.
