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 Gambling.com Group Limited (NASDAQ:GAMB) 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 wide shot of a casino in night light, picturing the high stakes of iGaming and sports betting.
Gambling.com Group Limited (NASDAQ:GAMB)
Gambling.com Group Limited (NASDAQ:GAMB) offers marketing services to the global gambling industry, focused mainly on companies that offer online sports betting and casino facilities. Its stock is up 18.96% so far this year, outperforming the S&P 500’s 4.19% YTD returns.
As the US continues to legalize gambling, companies like Gambling.com Group Limited (NASDAQ:GAMB) are thriving. It can be considered a ‘Picks & Shovels’ play. It is a company that isn’t directly involved in running the gambling industry and only provides the parts that are critical in moving the industry. This not only saves the regulatory hassle but also means they don’t have to pay licensing fees.
Consequently, Gambling.com Group Limited (NASDAQ:GAMB) enjoys 90% gross margins as compared to the 50% margins that a typical sportsbook provider can manage. The firm continues to focus on acquisitions, which may decrease its cash pile in the short run but since the acquisitions hit the ground running and started generating revenue, it isn’t a red flag as far as the balance sheet is concerned.
Overall GAMB ranks 7th on our list of the hottest gambling stocks of 2025 so far. While we acknowledge the potential of GAMB 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 GAMB 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.
