The global iGaming industry — encompassing online casinos, sports betting, and digital gaming platforms — has quietly become one of the fastest-growing segments of the entertainment economy. Once considered a niche or highly regulated space, online wagering is now mainstream. In markets like the United States, Canada, and Europe, the digital gambling revolution is accelerating as regulators open new jurisdictions and consumer demand for mobile entertainment continues to climb.
According to Grand View Research, the global online gambling market is projected to surpass $153 billion by 2030, expanding at a compound annual rate of 11.9%. The rise of smartphones, secure payment solutions, and legalized online betting frameworks has created fertile ground for software providers — the companies that build and maintain the platforms, analytics engines, and compliance tools that make iGaming possible. While casino operators and sportsbooks tend to capture most of the headlines, the real long-term winners may be the software enablers powering the digital infrastructure behind the scenes.
That’s exactly where many hedge funds have been quietly building exposure. Over the past two years, institutional investors have increased their stakes in iGaming software developers, data analytics firms, and B2B platform providers — betting that the industry’s digital backbone will deliver steadier margins and higher scalability than consumer-facing operators. As competitive pressures mount, gaming brands increasingly rely on outsourced technology and turnkey solutions for payments, fraud prevention, player management, and live-dealer functionality. This shift is creating a powerful tailwind for specialized software vendors whose intellectual property forms the foundation of the iGaming ecosystem.
From a macro perspective, the convergence of AI, cloud computing, and big data is transforming how online casinos and sportsbooks operate. Personalized odds, predictive engagement models, and real-time risk management are redefining user experience and profitability. The next decade is expected to see a surge in white-label solutions and modular gaming systems, allowing smaller brands to compete with established names using best-in-class software from third-party providers. For investors, this presents an opportunity to participate in the industry’s high-margin growth through a diversified exposure to technology vendors rather than relying solely on volatile operators tied to regional regulation or marketing expenses.
At Insider Monkey, we track the stock picks and sentiment of over 900 hedge funds, identifying patterns that reveal where smart money is flowing. Our research shows that hedge funds have been selectively increasing exposure to publicly traded iGaming software companies — particularly those with proven B2B relationships, recurring revenue models, and strong international footprints. These firms are well positioned to benefit from the ongoing expansion of legalized iGaming across North America, Europe, and emerging markets in Latin America and Asia.
In this article, we’ll highlight the five best iGaming software stocks to buy according to hedge funds — companies that combine technological leadership with consistent institutional confidence. From platform providers powering global operators to analytics firms driving next-generation gaming intelligence, these stocks represent the technology layer of one of the world’s fastest-evolving industries.
5. Paysafe Limited (PSFE)
Number of Hedge Funds: 20
A specialized payments company that is deeply integrated into the iGaming ecosystem, processing deposits and withdrawals for operators and consumers. Paysafe is primarily a payments / fintech company, not a core iGaming software provider (platforms, casino engines, wagering tech). It supports deposit/withdrawal flows, which is adjacent but not the same.
4. Light & Wonder Inc. (LNW)
Number of Hedge Funds: 31
Light & Wonder, which can be classified as an igaming software provider, is a major player in both land-based and digital gaming. Their iGaming division provides a massive library of popular slot games and the core platform technology that many online casinos run on.
3. International Game Technology (IGT)
Number of Hedge Funds: 34
A legacy gaming giant with a significant and growing digital arm called PlayDigital. They provide a full suite of iGaming products, including a sportsbook platform, casino games, and payment solutions.
2. Sportradar Group AG (SRAD)
Number of Hedge Funds: 35
A leading global provider of sports data and statistics. They supply real-time data feeds and odds-making services to sports betting operators around the world.
1. Genius Sports Limited (GENI)
Number of Hedge Funds: 36
A major competitor to Sportradar, providing official data from sports leagues (like the NFL) to the betting and media industries.