The 10 Largest Gambling Stocks of 2024

8. Churchill Downs Incorporated (NASDAQ:CHDN)

Market Capitalization: $10.19 Billion

No. of Hedge Fund Investors: 31

Churchill Downs Incorporated (NASDAQ:CHDN) remains one of the favourite gambling stocks of hedge funds. The company is known for its diverse portfolio of racetracks, casinos, and online betting. CHDN is operating in an evolving market with the potential for notable growth. The company is famous for its flagship event, the Kentucky Derby. In addition to that, the company also operates an online horse racing wagering platform in the U.S.

On October 23, Churchill Downs Incorporated (NASDAQ: CHDN) announced the third quarter 2024 results, with record Q3 revenue of $628.5 million compared to $572.5 million a year ago. The revenue was mainly driven by the company’s Live and Historical Racing and Gaming segments. In addition to record Q3 revenue, CHDN also posted historical net income of $65.4 million, up from $61 million in Q3 2023.

The company opened The Rose Gaming Resort in Dumfries, Virginia, with 1,650 historical racing machines and a 102-room hotel. Churchill Downs Incorporated has also announced the development of a $40 to $50 million historical racing machine (HRM) entertainment venue in Calvert City, Kentucky. The new HRM venue will be a 23,000-square-foot facility with 250 HRMs, a sports bar and a sportsbook, and a simulcast center, expected to open in early 2026.

With continued growth, the company has also announced a dividend of $0.409 per share, payable to shareholders on January 3, 2025. This represents the fourteenth consecutive year of increased dividends. Furthermore, Churchill Downs Incorporated (NASDAQ:CHDN) repurchased 67,139 shares during Q3 at a total cost of $9 million, with a remaining $170.9 million of repurchase authority under the share repurchase program.