Gambling.com Group Limited (GAMB): A Bull Case Theory

We came across a bullish thesis on Gambling.com Group Limited (GAMB) on Substack by Inflexio Research. In this article, we will summarize the bulls’ thesis on GAMB. Gambling.com Group Limited (GAMB)’s share was trading at $14.72 as of May 14th. GAMB’s trailing P/E was 17.52 according to Yahoo Finance.

Gambling.com (GAMB) is a high-margin, capital-light affiliate marketing company connecting online gaming operators with depositing users via a portfolio of 60+ websites, including Gambling.com, Bookies.com, and Casinos.com. Monetizing traffic through CPA (50% of revenue), revenue share, and hybrid models, the company earns 62% of its revenue from iGaming and social casinos, and 38% from sports betting. Despite Google algorithm changes in late 2023 and early 2024 that hurt SEO visibility—especially in the UK and Ireland—and forced a reset in guidance, GAMB swiftly pivoted to focus on organic traffic, delivering record Q2, Q3, and Q4 2024 results and restoring investor confidence.

With 94% gross margins, 38% EBITDA margins, and nearly 100% FCF conversion, GAMB trades at just 9x EPS and 5.5x EBITDA—levels that appear deeply discounted for a business with a clear path to $100M in EBITDA. Tailwinds include a global iGaming market growing at 12% CAGR and only seven U.S. states having legalized online casinos, leaving ample room for expansion.

In 2025, ten states introduced iGaming legislation, with even partial adoption posing significant upside. GAMB is expanding internationally, notably in Latin America, and has grown through strategic M&A—acquiring Freebets.com at 5.6x EBITDA and Oddsjam, a recurring revenue platform, for 5.5x 2025 EBITDA. CEO alignment is strong with 12% ownership and performance-based options. Trading at 12x 2025 EPS with $67–69M EBITDA guidance, GAMB could reach $2.00+ EPS and $24.50/share by 2027. Execution, regulation, and insider sales remain risks, but the risk/reward setup is compelling for long-term investors.

Gambling.com Group Limited (GAMB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held GAMB at the end of the fourth quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of GAMB as an investment, our conviction lies in the belief that some 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 GAMB 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 was originally published at Insider Monkey.