In this article, we will look at the 10 Largest Gambling Stocks of 2024.
According to The Business Research Company, the global gambling market is expected to grow from $540.3 billion in 2023 to $744.8 billion in 2028, at a compound annual growth rate (CAGR) of 6.6%. Some major catalysts influencing the gambling industry include the legalization of gambling, rapid urbanization, increasing use of social media, and increasing involvement in sports betting applications. Factors that can hurt the growth are growing taxation on casinos and strict government oversight of the gambling industry.
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Two of the Leading Markets in the Gambling Industry
The gambling industry is evolving with more and more companies advancing in the sports betting arena. By the end of 2023, the gambling and casino industry had started showing signs of growth as strong gambling activity was experienced in Macau. According to the Statistics and Census Service, the tourist count crossed 28 million in Macau in 2023, increasing by 394.9% from 2022. In the U.S., Las Vegas continues to evolve and remain the largest gambling city in the country. According to Condé Nast Traveler, Las Vegas was the sixth most visited city for international visitors to the U.S. in 2023.
According to the hospitality consulting firm HVS, the Las Vegas Casino and Hotel Market hosted nearly 40.8 million visitors in 2023, surpassing the 40 million threshold for the first time since 2019. Between 2015 and 2019, over 42 million visitors traveled to Las Vegas each year before dropping to just over 19 million in 2020 due to the COVID-19 pandemic.
The deep effects of the pandemic are far behind now and tourism is back to normal in Las Vegas. In 2023, the gaming revenue for Clark County was around $13.5 billion, setting a market record for the second straight year. With new avenues and casino hotels, the gambling market is expected to continue its growth momentum.
Americans’ Support for Gambling
The majority of U.S. adults support casino gambling and sports betting. According to the American Gaming Association Survey, over 55% of U.S. citizens participated in some form of gambling in 2023, while more than 28% gambled at a physical casino. In addition, nearly 21% of people took part in sports betting. With increasing acceptance of gambling, 9-in-10 Americans find casino gambling to be acceptable for themselves or others. The gambling confidence among Americans is higher than ever before. Nearly 65% of Americans believe that the gambling industry is committed to supporting responsible gambling and overcoming problem gambling.
The gambling industry continues to thrive and the bullish sentiment remains strong among the investors. Over the 1 year, three of the largest gambling and sports betting ETFs have gained an average of over 27%, as of November 4. Roundhill Sports Betting & iGaming ETF (NYSEARCA:BETZ), Global X Video Games & Esports ETF (NASDAQGM:HERO), and VanEck Video Gaming and eSports ETF (NASDAQGM: ESPO) have soared over 16%, 24%, and 41%, respectively. With that in context, let’s take a look at the 10 largest gambling stocks of 2024.
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Our Methodology
To compile our list of the largest gambling stocks, we simply made a list of the ten most valuable gambling firms in terms of market capitalization that are traded on U.S. stock exchanges, as of November 4. We also mentioned the number of hedge funds that had invested in the stocks during Q2 2024, and the data for hedge fund investors was obtained from Insider Monkey’s database.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
The 10 Largest Gambling Stocks of 2024
10. Light & Wonder, Inc. (NASDAQ:LNW)
Market Capitalization: $8.41 Billion
No. of Hedge Fund Investors: 27
Light & Wonder, Inc. (NASDAQ:LNW) is a cross-platform global games company with a focus on content and digital markets. The company segments include Gaming, SciPlay, and iGaming. Light & Wonder offers its gaming products and services to commercial casinos, Native American casinos, and wide-area gaming operators such as licensed betting offices (LBOs) and bingo operators in the UK and Europe.
Light & Wonder, Inc. (NASDAQ:LNW) is facing a legal battle following a recent court ruling that questioned the legality of its popular Dragon Train slot machines. The Nevada judge’s injunction to Aristocrat over the Dragon Train game has hit the stock as the shares have dropped nearly 19% since the news broke out on September 23. Light & Wonder’s CEO Matt Wilson is optimistic, reaffirming the $1.4 billion AEBITDA target for 2025. The management believes that the impact of Dragon Train will be mitigated with hits like ULTIMATE FIRE LINK, backed by the company’s strong game franchises including Dancing Drums, Journey to Planet Moolah, and Monsters, providing a solid foundation for the company’s gaming fleet.
To put this in perspective, for 16 consecutive quarters the company has grown its North American premium installed base and now is at nearly 50% of its total North American installed base.
Light & Wonder, Inc. (NASDAQ:LNW) completed its first-ever share repurchase program in just a little over two years. The company has authorized a new three-year $1 billion buyback program as it continues to experience valuation improvement. On October 15, Light & Wonder, Inc. announced new systems deals with three properties including Casino Miami in Miami, Delaware Park Casino in Wilmington, and Viejas Casino & Resort in San Diego. At G2E earlier this month, Light & Wonder demonstrated its scroll-stopping social media campaigns that are driving real results. In 2024, Light & Wonder experienced a 75% increase in engagement across all social media platforms.
9. Caesars Entertainment, Inc. (NASDAQ:CZR)
Market Capitalization: $8.46 Billion
No. of Hedge Fund Investors: 54
Caesars Entertainment, Inc. (NASDAQ:CZR) is a leading entertainment and gambling company. The company has over 50 casinos in the world. Caesars’ most popular gaming arenas include Harrah’s, Horseshoe, Eldorado, Silver Legacy, Circus Circus Reno, and Tropicana. These brands offer diversified gaming, entertainment, and hospitality amenities, and a full suite of mobile and online gaming and sports betting experiences.
On October 23, Caesars Entertainment, Inc. (NASDAQ:CZR) announced the completion of its $435 million transformation of Harrah’s to Caesars New Orleans. Following the Harrah’s New Orleans transformation, Caesars is working to open Nobu Hotels Caesars in New Orleans in the coming months. The Nobu Hotels Caesars in New Orleans is estimated to increase Caesars Entertainment’s gaming revenue by $80 million. In addition to that, the company also plans to open another property in Virginia by the end of 2024.
The company continues to grow its revenue and strengthen its fundamentals. Furthermore, it is enhancing its digital games portfolio. On October 7, Caesars Entertainment, Inc. announced the launch of its Horseshoe Online Casino, an online casino application and desktop platform for seasoned casino players.
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.
7. Wynn Resorts, Limited (NASDAQ:WYNN)
Market Capitalization: $10.63 Billion
No. of Hedge Fund Investors: 42
Wynn Resorts, Limited (NASDAQ:WYNN) is one of the biggest casino operators and has a strong presence in Las Vegas and Macau. Wynn Macau oversees the operations in Macau and is a subsidiary of Wynn Resorts, Limited (NASDAQ:WYNN) listed on the Hong Kong exchange. The company has high-end luxury hotels worldwide.
Wynn Resorts, Limited (NASDAQ:WYNN) has obtained its first commercial gaming operator’s license in the UAE. Wynn Resorts is building a luxury resort at Wynn Al Marjan Island in Ras Al Khaimah in a joint venture with Marjan and RAK Hospitality Holding. This is a big development for the casino operator to build its first resort in a financial hub, where the millionaire population continues to grow.
Wynn Resorts, Limited (NASDAQ:WYNN) is a solid casino firm with worldwide assets. Wynn Macau’s long-term outlook remains very bright. The company is enhancing its product offering in Macau through new and innovative food and beverage concepts and unique programs. Furthermore, Wynn Macau is working on its second major concession-related project, the destination food hall, which is expected to open in 2025. Wynn Resorts, Limited is also exploring greenfield opportunities in major gateway cities like New York and Bangkok.
As Wynn Resorts, Limited (NASDAQ:WYNN) penetrates major global markets, analysts are bullish as well. Susquehanna analyst Joseph Stauff raised his price target on WYNN to $122 from $92 and kept a Positive rating on the shares. The analyst also raised his 2025 estimates for Wynn Resorts and expects a higher Macau-based EBITDA multiple of 14x compared to the previous estimate of 12x.
Baron Real Estate Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its fourth quarter 2023 investor letter:
“The shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, declined modestly in the most recent quarter, in part due to concerns about economic weakness in China.
We remain optimistic about the multi-year prospects for the company. We believe the ongoing re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase 30% to 50% higher than where they have recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”
6. MGM Resorts International (NYSE:MGM)
Market Capitalization: $10.99 Billion
No. of Hedge Fund Investors: 44
MGM Resorts International (NYSE:MGM) is a holding company that operates in domestic and international locations through its subsidiaries. The company’s segments include Las Vegas Strip Resorts, Regional Operations, and MGM China. The company’s properties offer casino and betting products and services to visitors.
MGM Resorts International’s (NYSE:MGM) collaboration with Marriott International has been going smoothly. On October 21, MGM and Marriott announced another partnership to bring the W Hotels brand to Las Vegas. This is part of the companies’ long-term strategic licensing agreement announced in July 2023. Both companies are taking advantage of this partnership. The MGM Collection with Marriott Bonvoy, launched in March 2024, has exceeded expectations, with over 410,000 room nights booked during Q2 2024. Over 200 million Marriott Bonvoy members can now enjoy benefits and redeem points at MGM Resorts destinations. The agreement between both companies encompasses 17 MGM resorts, featuring over 40,000 rooms across Las Vegas and other U.S. regions. During Q3, the demand remained high for MGM’s resorts, driven by record ADRs in Las Vegas and record occupancy at the company’s regional resorts.
The company has also reduced its net debt and improved its free cash flow (FCF), driven by a 9% increase in revenue during the first nine months of fiscal 2024. MGM Resorts International has an FCF of over $944 million, as of Q3 2024. Moreover, during Q3 2024, the company reported record results with a net revenue increase of 5% year-over-year to $4.18 billion, driven by higher prices and occupancy. In Macau, MGM China’s net revenues grew 14% year-over-year.
5. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)
Market Capitalization: $13.89 Billion
No. of Hedge Fund Investors: 25
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is the first gaming real estate investment trust in the U.S. The company’s portfolio includes 65 premier gaming and related facilities which are operated by recognized industry leaders. The gambling REIT engages in acquiring, financing, and owning real property to be leased to gaming operators in triple net lease arrangements.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) has a solid portfolio positioned well across the country and focuses on regional gaming markets. Considering the growth in the casino gaming industry, the REIT is confident in the long-term health of its casino gaming market.
During the third quarter of 2024, Gaming and Leisure Properties, Inc.’s total revenue increased by $25.70 million year-over-year to $385.30 million. The company experienced growth driven by the Tioga acquisition, which added $3.6 million in cash income, while the Rockford acquisition added $4.6 million in cash rental income. Additionally, another $1.5 million was added through the Casino Queen Marquette acquisition and the Baton Rouge landside development. Other developments and acquisitions also played a vital role in the growth of revenue. So far in 2024, the company’s investment activity of almost $2 billion has had an attractive blended yield of 8.40%. The company also paid a third-quarter 2024 cash dividend of $0.76 per share on September 27.
4. DraftKings Inc. (NASDAQ:DKNG)
Market Capitalization: $17.41 Billion
No. of Hedge Fund Investors: 56
DraftKings Inc. (NASDAQ:DKNG) is one of the largest gambling companies in the world. The company offers online sports betting, online casino, and daily fantasy sports (DFS) product offerings. In addition to that, the company also has retail sportsbooks, media, and other consumer product offerings. DraftKings also designs and develops sports betting and casino gaming software for online and retail sportsbooks and iGaming operators.
DraftKings Inc. (NASDAQ:DKNG) new OSB and iGaming customers increased by almost 80% year-over-year during the second quarter of 2024. The company expects its acquisition environment to continue through the second half of 2024 and beyond as the market is offering potential growth opportunities. The company also projects potential upside for adjusted EBITDA in 2025 and beyond. During Q2, the management said that they are expecting adjusted EBITDA between $900 million and $1 billion in fiscal year 2025.
The catalyst for the growth of DraftKings is its investment in new features and functionality for Sportsbook and iGaming. In Sportsbook, the company has launched in-house player prop wagers for NFL, NBA, MLB, NHL, college football, college basketball, and tennis. Whereas, DraftKings has expanded its progressive parlays to include spread and total wagers. The company also plans to integrate a bet and watch experience with NFL streaming. DraftKings Inc. (NASDAQ:DKNG) is capitalizing on the opportunity to expand these Sportsbook and iGaming segments and has received a positive response from the customers.
3. VICI Properties Inc. (NYSE:VICI)
Market Capitalization: $33.57 Billion
No. of Hedge Fund Investors: 33
VICI Properties Inc. (NYSE:VICI) is another leading real estate investment trust (REIT) that specializes in owning and acquiring properties in the hospitality, gaming, and entertainment sectors. The company has properties in well-known locations including Caesars Palace, MGM Grand, and The Venetian Resort in Las Vegas. VICI Properties has a total of 93 experiential properties, comprising 54 gaming facilities and 39 additional venues across the U.S. and Canada. VICI’s properties are managed by top industry firms, and backed by long-term, triple-net lease agreements.
During the third quarter of 2024, VICI Properties (NYSE:VICI) exceeded the revenue estimates by $10.21 million, posting a total revenue of $964.67 million, marking a 6.7% increase despite economic challenges. The earnings per share increased 27.4% year-over-year to $0.70 and surpassed estimates by $0.03 per share. Earlier in Q2, management highlighted that they are committed to allocating up to $950 million for investments in key experiential properties, preferably the Venetian Resort and several Great Wolf Resorts. VICI expects these investments to yield a 7.9% return.
VICI Properties Inc. (NYSE:VICI) is committed to experiencing future growth in Adjusted Funds From Operations (AFFO) while diversifying its portfolio. The company aims to allocate capital to both gaming and non-gaming ventures. Las Vegas has been a successful market for the company and VICI plans to invest up to $700 million in renovations at the Venetian, which will lead to increased rent, as per Q2 plans. By the end of Q3, the company settled 7 million shares and received nearly $201 million under its forward sale agreements. The proceeds will go to renovation investment at the Venetian. To add to the context, the company collects more than 45% of its rent from the Las Vegas market.
Here is what Baron Real Estate Income Fund has to say about VICI Properties Inc. (NYSE:VICI) in its Q2 2023 investor letter:
“We have slightly decreased our already modest exposure to the triple net gaming REIT VICI Properties Inc. (NYSE:VICI), an owner of quality gaming, hospitality, and entertainment properties. The company pays a 6% dividend that is well covered, has a strong track record of making accretive acquisitions, and has additional opportunities for growth in the years ahead.”
2. Las Vegas Sands Corp. (NYSE:LVS)
Market Capitalization: $37.23 Billion
No. of Hedge Fund Investors: 40
Las Vegas Sands Corp. (NYSE:LVS) is an American company that operates casinos and resorts in Las Vegas, Macau, and Singapore. However, the company’s primary geographic locations are Macau and Singapore. In Macau, the company manages operations through its Chinese subsidiary, Sands China Ltd. In Singapore, it owns Marina Bay Sands.
The company’s integrated resorts feature accommodations, gaming, entertainment, and retail malls, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp.’s properties also serve high-end players by providing them with luxury amenities and premium service levels. Other major amenities include invitation-only clubs and private gaming salons.
Las Vegas Sands Corp. (NYSE:LVS) has the objective to capture high-value, high-margin tourism over the long term. Macau remains the hot market for the company as it continues to grow. During Q3 2024, the company’s Macau market revenue increased 13% year-over-year, while the Masking revenue grew 14% from a year ago. The company suffered major disruption at the Londoner, which the company aims to overcome through its Londoner Grand renovation program.
The company expects the Chinese economy to grow, as China makes economic developments. The Macau market has growth potential and the company expects its Macau market gross gaming revenues to exceed $30 million in 2025.
The company has missed earnings estimates in the last two quarters, however, it expects to improve its earnings in the long term.
1. Flutter Entertainment plc (NYSE:FLUT)
Market Capitalization: $40.78 Billion
No. of Hedge Fund Investors: 53
Flutter Entertainment plc (NYSE:FLUT) is an online sports betting and iGaming operator with a major presence in the U.S., the U.K., and Australia. The company’s US division offers sports betting, casino, DFS, and horse racing wagering products, mainly online but also provides a small number of retail outlets across the U.S. In the U.K., the company offers sports betting, iGaming, and other products through its Sky Betting & Gaming, Paddy Power, Betfair, and Tombola brands. In Australia, Flutter Entertainment operates its online sports betting products through its Sportsbet brand. The company is mainly famous for its sports betting platform FanDuel, which separates it from its competitors.
The company mainly targets the online sports betting and gaming market, allowing it to penetrate more than 100 global markets. The company’s international division includes PokerStars, Betfair International, Adjarabet and Junglee Games. Flutter Entertainment plc (NYSE:FLUT) shared its 2027 guidance and expects to achieve revenue of $21 billion, growing at a three-year compound annual growth rate (CAGR) of 14%, leading to an Adjusted EBITDA of over $5 billion in 2027.
The company is the industry leader with a revenue of $11.79 billion in 2023, up by 25% year-over-year. Flutter Entertainment plc (NYSE:FLUT) increased its market share by 40% during Q2 in the U.S., while reaching over 14.3 million monthly active users, an increase of 17% from a year ago. With the continued growth momentum, the company’s objective is to invest in organic growth and engage in value-creative mergers and acquisitions. Furthermore, the company’s Board has authorized a share buyback program of up to $5 billion, expected to be completed over the next three to four years. The share buyback program is expected to kick off following its Q3 earnings in November 2024.
While we acknowledge the potential of FLUT, our conviction lies in the belief that 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.
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