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 Rush Street Interactive, Inc. (NYSE:RSI) 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 closeup shot of slot machines and a player nervously waiting for the spin to stop.
Rush Street Interactive, Inc. (NYSE:RSI)
Rush Street Interactive, Inc. (NYSE:RSI) operates sports betting and online casinos in the US, Canada, Mexico, and South America. Its real-money online casinos are quite popular among users together with its social gaming services. The stock is up 21.72% so far this year, outperforming the S&P 500’s 4.19% YTD returns.
As more and more states ease up on betting regulations, companies like Rush Street Interactive, Inc. (NYSE:RSI) can increase their footprint and compete with the giants of the industry. Despite competition from bigger rivals like DraftKings and Flutter Entertainment, the company has managed to maintain its market share. Its revenue has grown at an amazing CAGR of over 95% from 2018 till the third quarter of 2024.
On the last earnings report, Rush Street Interactive, Inc. (NYSE:RSI) increased the guidance for 2024 revenue so there is considerable optimism before the 26th February earnings call. One of the things investors are looking at is the company’s growth in Latin America. In Q3 2024, the company reported that its monthly active users in the region grew at 122% YoY. With less than 20% of the company’s revenue coming from Latin America, the growth prospects continue to drive the stock price higher.
Overall RSI ranks 5th on our list of the hottest gambling stocks of 2025 so far. While we acknowledge the potential of RSI 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 RSI 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.
