The online gambling industry has become a lucrative area for investors to invest their money in. This is so as it keeps growing. With that being said, find out what gambling stocks they should look out for in 2025.
Investors looking to diversify their portfolios in 2025 can consider leaning towards the online gambling industry if they haven't done so already. This is because this sector keeps growing; as of 2023, it was worth $164.53 billion, and it's expected to reach an overall value of $164.53 billion by 2033, according to a recent report by Yahoo Finance. With many stocks on the market, it's helpful to know which ones would still hold its own as 2025 approaches. In this article, we'll explore what online gambling stocks to watch as we cruise into the new year very soon.
Top online gambling stocks worth Investing in
One appeal of online gambling is the variety of bonuses that players often get, such as the 5 free spins in Australia that allow them to play games without using their deposits. With such a feature, it wouldn't be surprising that this industry remains relevant in the years to come. As the new year approaches, several investors, intrigued by their potential for high returns and global market reach, maybe watching stocks in this industry. With that in mind, here are the top options that are worth considering.
Flutter Entertainment PLC (LSE:FLTR)
When creating a list of gaming and sports betting giants, Flutter Entertainment PLC (LSE:FLTR) is sure to be on it. This mega company is the parent company of brands that are familiar to online gambling enthusiasts, such as DraftKings PokerStars, FanDuel, and Paddy Power, and has established itself in the United Kingdom, Ireland, the United States, Italy, Australia and other countries. According to MarketBeat, Flutter Entertainment plc has shown a positive momentum in the market, with its stock price trading at a 6.9% increase. And investors can expect more increases over the years.
The reason for this positive forecast is its resilience and adaptability, which it has demonstrated continuously despite fluctuating regulatory landscapes. In addition to this, FanDuel is dominating the US sports betting market, with a market share of 35%, according to a recent report by The Times. On the other hand PokerStars has an impressive online gaming presence, all of which makes Flutter Entertainment’s portfolio more diverse and reduces its dependency on one region. Due to this, investors wouldn't have to worry about the effect of market volatility should they choose to invest. Moreover, Flutter will likely gain more market in the US with reinvestment plans and more so worldwide. Thus, this will make it one of the online gambling stocks to watch in 2025.
The next stock to watch will be Entain PLC, and there are several reasons why it made the list. Formerly called GVC Holdings, this company owns brands like Bet MGM, Ladbrokes, Neds and Sportingbet, Crystalbet, Eurobet, and Bwin, all of which are household names in the online gambling industry. Aside from these, Entain possesses ownership of the following game brands: partypoker, Foxy Bingo, Gala, CasinoClub, and Gioco Digitale. Such an impressive diversification could keep the company profitable in the years to come. Besides, it's focused on enhancing user experience, and has invested in data analytics and technology to achieve this, while complying with the regulations.
It's also worth noting that Entain PLC (LSE:ENT) is committed to responsible gambling, a feature that would keep it relevant as more regions head towards stricter regulations. Regarding its performance, Entain’s Underlying Net Gaming Revenue (NGR) grew by 7%, which was better than what management expected, while BetMGM’s NGR increased by 18%. In addition to this, its UK & Ireland online markets, as well as the international ones recorded strong performances. And with analysts’ ratings backing up the strong buy trend of ENT stocks, investors can consider investing in the company.
Admittedly, Playtech PLC (LSE:PTEC) may not be the biggest online gambling-related company out there, but it's worth adding to the lists of stocks investors should consider. After all, it's one of the biggest providers of online gambling software - it supplies technology to major online sportsbooks and casinos. With that in mind, Playtech PLC's portfolio is quite diverse, including sports betting, poker, and online casino games. Although it already has an established presence in Europe, it recently partnered with US operators, which sets it up for more growth.
Another good reason is that Playtech is still trading at a relatively cheap price - according to an article by Simply Wall Street, its stock is currently trading at UK£6.48 on the share market, making it easy for investors to buy now if they're interested. Moreover, the future is also looking up for the company, as its profit is predicted to double as the years go by. This means investors can get a good return on investment, especially after buying the stocks at a more affordable rate.
Last but not least, Rank Group PLC is also worth watching in 2025. The operator of Grosvenor Casinos and Mecca Bingo, is traditionally inclined towards physical locations. In recent times, however, it began to enter the online gambling scene by investing in digital transformation and growing its online platform to attract younger audiences who prefer mobile-based gambling.
Although the COVID pandemic affected its physical locations, its digital gambling market can still make its stocks valuable. Analyst ratings place it at a “strong buy”, which investors can take advantage of as 2025 approaches. Moreover, the company's shift towards online gambling is proof of its ability to adapt to evolving user preferences and trends, a trait that could facilitate its growth and value.
The mobile gambling industry keeps growing, which in turn, makes it a great investment option. For this reason, it makes sense for investors to include online gambling stocks in their portfolios in order to get a good return on investment. However, knowing what stocks to invest in is equally important, which is why it's advisable to pay attention to options that show promise in 2025. The companies above have shown their capacity for market expansion, which makes their stocks worth looking into.