We recently compiled a list of the 10 Best Casino Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Flutter Entertainment plc (NYSE:FLUT) stands against the other casino stocks.
The casino industry has rebounded strongly from the COVID-19 pandemic, due to pent-up demand from gamblers and visitors returning to popular places such as Las Vegas. Brick-and-mortar casinos make a substantial profit from hotel operations, conventions, and other events in addition to the revenues that they make from slot machines and table games. Casino stocks are categorized as consumer discretionary since tourism and gambling spending are strongly correlated with the overall economic condition. According to Market Research Future, the global casino market is projected to grow from $309.54 billion in 2024 to $511.6 billion by 2032, with a compound annual growth rate (CAGR) of 6.48% over the forecast period (2024-2032). Furthermore, in 2023, the casino market was estimated to be worth $290.7 billion.
Regionally, the Asia Pacific Casino market dominates the industry due to the growing availability of online casinos and the average individual’s income. The North American casino market has the second-largest market share due to the legalization of sports betting and the approval of online gambling in the region. Furthermore, the UK casino market grew at the quickest rate in the European region, while the German casino industry held the largest market share.
Macquarie analyst Chad Beynon recently highlighted the significant market reaction to casino industry earnings even though the results were essentially in line with forecasts. After five years of underperformance, the industry saw double-digit stock increases due to improving sentiment, potential interest rate drops, and solid early-year trends. Although Macau’s recovery is still below pre-pandemic levels, gaming revenue is projected to rise by 8% in 2025, outperforming the U.S. market’s flat-to-2% growth. Chinese New Year activity was consistent rather than volatile, showing a healthy demand trend. By bypassing the costs of licensing and regulations, new event-based contracts may pose a threat to established operators. However, Beynon believes that licensed operators will fight back, as they did against sweepstakes and illegal betting. Investor confidence was strengthened by generally favorable remarks regarding recent trends, even if some companies decided not to provide updates during the quarter. The industry is now seen more favorably by analysts after years of weak performance.
Apart from analysts, there are also billionaire investors who remain bullish on the casino stocks. Ken Fisher’s Fisher Asset Management, with a portfolio worth more than $252 billion, has invested in two renowned casino stocks. In Q4 of 2024, Fisher invested more than $201 million and owned more than 2.3 million shares in a high-end casino and hotel operator in the United States. Fisher’s confidence in the market’s long-term potential is proven by the fact that the stock makes up 0.07% of his portfolio. In the same quarter, Fisher also made an investment of more than $153 million in an American multinational hospitality, sports, and entertainment company.
Meanwhile, in Q4 of 2024, Billionaire Carl Icahn’s Icahn Capital LP, which has a $7.4 billion portfolio, showed its trust in the industry by investing over $82 million in the largest casino-entertainment firm in the United States.
A casino floor with multiple gaming tables and slot machines illuminated by neon lights.
Our Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified casino stocks from the list. These companies are involved in operating casinos, online gaming platforms, sports betting, and resort entertainment. From there, we picked the top 10 stocks with the highest number of billionaires having a stake in them. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Flutter Entertainment plc (NYSE:FLUT)
Number of Billionaires: 19
Billionaire Holdings: 3,237,009,330
The Best Casino Stock, Flutter Entertainment plc (NYSE:FLUT) is also the world’s largest sports betting and iGaming operator, with 13.9 million average monthly players globally in 2024. It was launched in 2016 and is headquartered in New York City. The firm has established a narrow moat that extends over the US, UK, Australia, and other international markets, including Italy, by turning its top technology and product offering into a strong global brand.
In Q4 of 2024, Flutter Entertainment plc (NYSE:FLUT)’s revenue reached $3.79 billion, a 14% rise over the previous year, indicating great financial growth. Following a net loss of $902 million in Q4 2023, the firm reported a net income of $156 million, marking a dramatic turnaround. Free cash flow rose by a remarkable 175% to $473 million, while adjusted EBITDA increased by 4% year over year to $655 million. Moreover, earnings per share improved significantly, showing the company’s improved profitability and operational efficiency as it went from a loss of $5.14 per share in Q4 2023 to a positive $0.45 per share in Q4 2024.
In 2024, Flutter Entertainment plc (NYSE:FLUT) reported a 26% growth in adjusted EBITDA and a 19% YoY rise in revenue. It has cemented its position as the industry leader in the United States, with a 43% GGR market share in online sportsbooks and a 26% share in iGaming. Through the acquisition of MaxBet and the successful launches of FanDuel in North Carolina and Vermont, the company has also made notable progress abroad. The firm is continually innovating with new products like the FanDuel Reward Machine, Same Game Parlay, and Flutter Edge, which have all led to tremendous growth and increased consumer engagement.
Overall, FLUT ranks 1st on our list of the Best Casino Stocks to Buy According to Billionaires. While we acknowledge the potential for FLUT 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 time frame. If you are looking for an AI stock that is more promising than FLUT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
