We recently compiled a list of the 10 Best Gambling Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Las Vegas Sands Corp. (NYSE:LVS) stands against the other gambling stocks.
According to a report by The Business Research Company, the global gambling market reached a value of approximately $540.3 billion in 2023 and is projected to reach $744.8 billion in 2028, with a CAGR of 6.6%. This growth is expected to be supported by rising disposable incomes, political stability, and increased foreign investments in emerging markets.
Lotteries represented the largest segment in gambling, accounting for 53.9% of the total market. This segment is projected to grow at the fastest CAGR of 8.2% between 2023 and 2028 and is expected to generate $141.4 billion in global annual sales by 2028.
The online gambling market is rapidly gaining popularity. According to Research and Markets, the online gambling market is expected to grow to $153.21 billion by 2029, expanding at a CAGR of 10.44%. The widespread use of mobile phones, the internet, and convenient online payment gateways have made online gambling more accessible. The sports category is on the rise and is fueled by major sports events.
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Rise of Sports Betting
In an interview with CNBC on November 8, Jason Robins, Co-Founder and CEO of DraftKings, shared his insights on the current state of the online sports betting industry. He believes that the industry is at a critical juncture, where more people across the country are becoming aware that they can gamble legally, leading to significant growth. Robins attributes this growth to the increasing number of states that have legalized sports betting.
Robins also highlighted the vast potential for growth, pointing to the American Gaming Association’s prediction of $35 billion in legal wagers during the current NFL season, a 30% increase from last year. He is hopeful that other states, including California, Florida, and Texas, will soon follow suit and legalize sports betting. While acknowledging that the legislative process can be slow, Robins is confident that most states will eventually adopt some form of legal sports betting, paving the way for the industry as a whole to continue its upward trajectory.
As the global gambling market continues to expand at a rapid pace, driven by the growing popularity of online betting and legalization, it’s clear that the industry is on the cusp of significant growth. With that in context, let’s take a look at the 10 best gambling stocks to buy according to hedge funds.
Our Methodology
To compile our list of the 10 best gambling stocks to buy according to hedge funds, we used Finviz and Yahoo stock screeners to find the 25 largest companies in the casino and gambling sectors. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 of 2024. We also included the market capitalization of these companies as of December 3. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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 dazzling Las Vegas Strip lined with luxury Integrated Resorts, seen from a high elevation.
Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 47
Market Capitalization as of December 3: $39.88 Billion
Las Vegas Sands Corp. (NYSE:LVS) is a global leader in integrated resorts and gaming. With properties in Macau and Singapore, the company primarily serves international and VIP customers. Las Vegas Sands Corp.’s (NYSE:LVS) portfolio includes luxury hotels, casinos, and convention centers. Recently, the company has shifted its focus to Asia, divesting its Las Vegas operations to capitalize on higher growth markets. Las Vegas Sands Corp. (NYSE:LVS) is also investing in digital gaming platforms as part of its long-term growth strategy.
The company’s integrated resorts offer a range of amenities, including luxury accommodations, gaming facilities, entertainment options, retail malls, convention and exhibition spaces, celebrity chef restaurants, and more. These properties cater to high-end players with invitation-only clubs, private gaming salons, and premium service levels.
Las Vegas Sands Corp. (NYSE:LVS) is focusing on capturing high-value, high-margin tourism over the long term. Macau continues to be a key market for the company, with its revenue in the region growing by 13% year-over-year in Q3, while masking revenue increased by 14% during the same period. Looking ahead, the company is optimistic about growth in the Chinese economy, which it expects to drive the Macau market further. Las Vegas Sands Corp. (NYSE:LVS) projects gross gaming revenues in Macau to surpass $30 million in 2025.
Overall LVS ranks 5th on our list of the best gambling stocks to buy according to hedge funds. While we acknowledge the potential of LVS as an investment, our conviction lies in the belief that 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 more promising than LVS 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 is originally published at Insider Monkey.
