The stock market and gambling share many traits - enough that some people consider stock trading to be gambling. Certainly they are both one of the few areas of life in which a small investment of time and money can (potentially) be turned into a massive fortune overnight. But how about when gambling companies and stocks collide?
Well, as it turns out several gambling companies have hit incredible stock market runs that can rival those of any other big global business. From a Swedish live casino game developer that revolutionized the global gambling space with a new gaming concept, to the new titans of US sports betting or a significant underdog recovery story - these are the best performing gambling stocks of all time.
Evolution's Historic Run Hits with Right Innovations at the Right Time
Between January 2019 and its peak in April 2021, Swedish live casino game maker Evolution's stock price increased from 108 Kroner ($17.96) per share to 1672 Kroner ($271). That's a return of 1448% or around 14.5x on investment in two years. Very few companies can have ever seen that kind of growth in share price - even tech giants like Apple, Meta and Google haven't had spikes like it.
Luckily if you want to play a great live casino with live dealers, Evolution's games are available at many top casinos. From the highest quality live tables of casino classics like blackjack, baccarat and roulette, to a huge range of innovative and high production game show titles, there's something for every kind of gambler at a casino with a premium live casino selection.
And that, is part of what made Evolution so successful. Other factors that contributed to its historic share price boom included:
- The launch of the very first live casino game show titles such as Dream Catcher (2017) and Monopoly LIVE
- Becoming the first live casino operator to launch in the regulated US market, when Pennsylvania legalized online casinos in 2020
- The COVID-19 pandemic lockdowns forced hundreds of millions of people around the world into their houses and online, just as Evolution's new live game shows were kicking off in popularity
DraftKings Gets First Mover Advantage in US Sports Betting
Since going public with its shares in 2020, US sports betting and now general online gambling giant DraftKings has been the king of sports betting stock prices.
The company's shares peaked in 2021 at $72, or around 700% up on their initial trading value of $9.80. They have fallen some since, but still trade today at around $45 or 450% up on the initial price.
The company benefitted from an existing strong market presence in the US due to its popular Daily Fantasy Sports app that skirted US gambling laws.
When sports betting slowly started being legalized in various states after the repeal of the Professional and Amateur Sports Protection act in 2019, DraftKings had a big advantage with its existing sports betting-aligned customer base.
The company leveraged this to become a close second market leader in the fast-growing US sports betting market. Although it has struggled with profitability in some years, it is slowly turning that round and investors have remained confident throughout.
Other factors that contributed to its meteoric share price rise over three years include:
- Strong marketing and branding, including deals with major sports leagues and teams
- Quick to move into all new major states as they legalised sports betting
An aggressive promotional and bonus strategy, taking potential hits on acquiring customers early in the market in a trade off for long term retention and loyalty
Rush Street Interactive
Speaking of turning fortunes around, few companies have managed such a successful recovery in share price as US-based Rush Street Gaming.
The small (less than $300 million market cap) operator was in deep trouble in 2023 - making a net loss of $60.1 million after a string of failed sports betting operations.
However, between then and now Rush Street has made a comeback for the books. It reported a full 2024 results of $7 million in profit and adjusted earnings hit $92.5 million which was up 1000% on the previous year.
During this time its share price surged 150%. How did Rush Street pull it off? Well, it benefitted from:
- Recognising the sunk cost fallacy and abandoning its failing sports betting operations to focus on online casinos
- A general surge in online casino stocks, of which Rush Street has now niched down to focus on
- Aggressively pursuing new markets in Latin America, including becoming the first licensed online casino operator in Peru
So, three of the biggest gambling stock runs of all time - and the market conditions that got them there. In hindsight many might say they would have seen this coming. But actually getting in on a booming stock early is another thing entirely. Maybe the lessons from these gambling operators' successes will help you in mastering the market in the future.