15 Best Gambling Stocks To Buy Now

Published on September 28, 2022 at 12:54 pm by Usman Kabir in Hedge Funds, News

In this article, we discuss 15 best gambling stocks to buy now. If you want to read about some more gambling stocks, go directly to 5 Best Gambling Stocks To Buy Now.

There is no doubt that the global gambling market is expanding rapidly. According to a report by Zion Market Research, the global gambling industry was worth more than $61 billion in 2021 and is estimated to grow to $114 billion by 2028. This represents a compound annual growth rate of close to 11% during the intervening seven years. Per the report, one of the most prominent growth catalysts for the industry is the Asia Pacific region, that is predicted to increase the use of internet services and is loosening the rules governing online betting and gambling.

Gambling stocks in the United States, like Caesars Entertainment, Inc. (NASDAQ:CZR), MGM Resorts International (NYSE:MGM), and Las Vegas Sands Corp. (NYSE:LVS), are set to benefit from this boom as well. Some of the factors expected to influence the future growth of these firms include the increasing adoption of smartphones, developments in internet technology, and higher spending power of individuals. The importance of online gambling software cannot be overstated, as vendors rely on new technology to improve the user experience.

Our Methodology

The companies that operate in the gambling sector were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

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Best Gambling Stocks To Buy Now

15. GAN Limited (NASDAQ:GAN)

Number of Hedge Fund Holders: 12

GAN Limited (NASDAQ:GAN) operates as a business-to-business supplier of enterprise software-as-a-service solutions to online casino gaming and sports betting applications. The firm features on the list of best casino stocks to invest in. On June 13, the company announced that its board of directors had authorized the extension of an existing $5 million share repurchase program to late November. The firm said that repurchases will be made with cash on hand and from operations.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in GAN Limited (NASDAQ:GAN), with 701,010 shares worth more than $2 million.

Just like Caesars Entertainment, Inc. (NASDAQ:CZR), MGM Resorts International (NYSE:MGM), and Las Vegas Sands Corp. (NYSE:LVS), GAN Limited (NASDAQ:GAN) is one of the best casino stocks to buy now according to hedge funds.

14. Monarch Casino & Resort, Inc. (NASDAQ:MCRI)

Number of Hedge Fund Holders: 15

Monarch Casino & Resort, Inc. (NASDAQ:MCRI) owns and operates the Atlantis Casino Resort Spa, a hotel and casino in Reno, Nevada. The firm posted earnings for the second quarter of 2022 on July 20, reporting a revenue of $115 million, up more than 17% compared to the revenue over the same period last year. The firm said it generated Q2 2022 consolidated adjusted EBITDA of $39.5 million, an increase of $4.3 million or 12.2%, over the same period a year ago.

Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Lafitte Capital Management is a leading shareholder in Monarch Casino & Resort, Inc. (NASDAQ:MCRI), with 370,917 shares worth more than $21.8 million.

13. Red Rock Resorts, Inc. (NASDAQ:RRR)

Number of Hedge Fund Holders: 21

Red Rock Resorts, Inc. (NASDAQ:RRR), through its interest in Station Holdco and Station LLC, develops and operates casino and entertainment properties in the United States. Red Rock Resorts, Inc. (NASDAQ:RRR) is one of the most prominent casino stocks to invest in. The company is slowly starting to build a dividend profile. On August 10, the company declared a quarterly dividend of $0.25 per share, in line with previous. The forward yield was 2.48%. Red Rock Resorts, Inc. (NASDAQ:RRR) was founded in 1975 and is based in Nevada.

On September 22, JMP Securities analyst Jordan Bender initiated coverage of Red Rock Resorts, Inc. (NASDAQ:RRR) stock with an Outperform rating and a $50 price target, highlighting the exceptionally high performance of the firm in the past few months.

At the end of the second quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $162.8 million in Red Rock Resorts, Inc. (NASDAQ:RRR), compared to 28 the preceding quarter worth $291.7 million.

In its Q2 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Red Rock Resorts, Inc. (NASDAQ:RRR) was one of them. Here is what the fund said:

“Red Rock Resorts, Inc. (NASDAQ:RRR), an owner and operator of Las Vegas locals casinos, detracted in the second quarter due to investor concerns that a possible recession would cause a slowdown or decline in growth. We remain investors. Red Rock has seen no material change in its visitation or spend levels, and its core customer base remains solid. Its robust balance sheet provides significant financial flexibility to continue to invest in its Durango casino expansion and other projects while using excess cash for share repurchases and dividends.”

12. Golden Entertainment, Inc. (NASDAQ:GDEN)

Number of Hedge Fund Holders: 21

Golden Entertainment, Inc. (NASDAQ:GDEN) engages in the ownership and operation of a diversified entertainment platform. On August 25, the firm announced that it would be selling the Rocky Gap Casino Resort in Maryland to VICI Properties for $260 million in cash. As part of the deal, the firm said that VICI acquired a stake in the land and buildings associated with Rocky Gap for $203.9 million, representing a 7.6% cap rate. Meanwhile, Century Casinos acquired the operating assets of the property for $56.1 million using cash from its balance sheet.

On September 7, Jefferies analyst Cassandra Lee assumed coverage of Golden Entertainment, Inc. (NASDAQ:GDEN) stock with a Buy rating and a $64 price target, appreciating the strong business model of the firm and performance in Nevada.

At the end of the second quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $163.6 million in Golden Entertainment, Inc. (NASDAQ:GDEN), compared to 21 in the previous quarter worth $276 million.

11. SciPlay Corporation (NASDAQ:SCPL)

Number of Hedge Fund Holders: 24

SciPlay Corporation (NASDAQ:SCPL) develops, markets, and operates a portfolio of social games for mobile and web platforms in North America and internationally. The firm is among the best casino stocks to invest in. SciPlay Corporation (NASDAQ:SCPL) posted earnings for the second quarter of 2022 on August 9, reporting a revenue of $160 million, up more than 4% compared to the revenue over the same period last year. The firm said that the earnings per share during the time were $0.23, beating estimates by $0.01.

On August 8, Wedbush analyst Michael Pachter upgraded SciPlay Corporation (NASDAQ:SCPL) stock to Outperform from Neutral with a price target of $17, up from $14.50, noting that the the firm will outgrow its success in a good way due to monetized ads.

At the end of the second quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $113 million in SciPlay Corporation (NASDAQ:SCPL), compared to 26 in the preceding quarter worth $124 million.

10. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)

Number of Hedge Fund Holders: 24

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) develops, owns, and operates casino gaming and resort facilities in Asia and Europe. On September 14, the company announced that it had submitted a detailed proposal in relation to the public tender for new gaming concessions launched by the Macau Government in July this year. Lawrence Ho, the CEO of the firm, said that the proposal reinforces the commitment to Macau and the further diversification of the economy of the region.

On September 26, investment advisory Citi maintained a Buy rating on Melco Resorts & Entertainment Limited (NASDAQ:MLCO) stock and raised the price target to $11.50 from $11. Analyst George Choi issued the ratings update.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Eminence Capital is a leading shareholder in Melco Resorts & Entertainment Limited (NASDAQ:MLCO), with 11.6 million shares worth more than $66.5 million.

9. Churchill Downs Incorporated (NASDAQ:CHDN)

Number of Hedge Fund Holders: 25

Churchill Downs Incorporated (NASDAQ:CHDN) operates as a racing, online wagering, and gaming entertainment company in the US. The firm is among the best casino stocks to invest in. On September 15, the company announced that it had signed a deal to acquire Ellis Park Racing & Gaming in Kentucky from an affiliate of Laguna Development Corporation for $79 million in cash. Churchill Downs Incorporated (NASDAQ:CHDN) said that the deal was subject to certain working capital and other purchase price adjustments.

At the end of the second quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $423 million in Churchill Downs Incorporated (NASDAQ:CHDN), compared to 28 in the preceding quarter worth $454.6 million.

8. Wynn Resorts, Limited (NASDAQ:WYNN)

Number of Hedge Fund Holders: 26

Wynn Resorts, Limited (NASDAQ:WYNN) designs, develops, and operates integrated resorts. On August 9, the firm posted earnings for the second quarter of 2022, reporting a revenue of $908 million. Craig Billings, the CEO of the firm, said that the second quarter financial results reflected continued strength at both Wynn Las Vegas and Encore Boston Harbor, as well as the ongoing focus on five-star hospitality and new experiences at market-leading properties combined with very strong customer demand.

On September 26, Jefferies analyst David Katz upgraded Wynn Resorts, Limited (NASDAQ:WYNN) stock to Buy from Hold with a price target of $75, up from $62, highlighting that Macau’s resumption of visas was a growth catalyst for the firm.

At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $142.8 million in Wynn Resorts, Limited (NASDAQ:WYNN), compared to 32 in the previous quarter worth $269 million.

In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Wynn Resorts, Limited (NASDAQ:WYNN) was one of them. Here is what the fund said:

“In the most recent quarter, we exited the Fund’s holdings in Wynn due to: (i) ongoing COVID-19-related travel restrictions in China, Macau, and Singapore; and (ii) the Macau government’s announcement to tighten its casino regulatory oversight.”

7. Everi Holdings Inc. (NYSE:EVRI)

Number of Hedge Fund Holders: 26

Everi Holdings Inc. (NYSE:EVRI) provides entertainment and technology solutions for the casino and digital gaming industries. It is one of the top casino stocks to invest in. On August 3, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.33, in line with market estimates. The revenue over the period was $197 million, up over 14% compared to the revenue over the same period last year. The company reiterated the FY2022 guidance for net income of $125 million to $132 million.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Driehaus Capital is a leading shareholder in Everi Holdings Inc. (NYSE:EVRI), with 2.26 million shares worth more than $39.9 million.

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Everi Holdings Inc. (NYSE:EVRI) was one of them. Here is what the fund said:

“Our Strategy outperformed with strong results from consumer discretionary stocks like Everi Holdings. Everi Holdings is a provider of casino games, cash access and customer relationship technologies to the gaming industry that outperformed as gaming activity and growth in placement of new games generated strong financial results.”

6. Light & Wonder, Inc. (NASDAQ:LNW)

Number of Hedge Fund Holders: 27

Light & Wonder, Inc. (NASDAQ:LNW) develops technology-based products and services related to gaming. The firm is based in Las Vegas and was founded in 1984. Some of the products that it sells include electronic table systems, video lottery terminals, conversion game kits, spare parts, table products, including shufflers, and perpetual licenses to proprietary table games. It also supplies game content and gaming machines to licensed gaming entities.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Fine Capital Partners is a leading shareholder in Light & Wonder, Inc. (NASDAQ:LNW), with 9.4 million shares worth more than $445 million.

Along with Caesars Entertainment, Inc. (NASDAQ:CZR), MGM Resorts International (NYSE:MGM), and Las Vegas Sands Corp. (NYSE:LVS), Light & Wonder, Inc. (NASDAQ:LNW) is one of the best casino stocks to buy now according to hedge funds.

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