The gambling and digital entertainment industry is turning a corner in 2025. The times when the industry was characterized by the glitz and glamour of Las Vegas casinos are gone. It is a radical change that is being experienced today, and it is propelled by technology and a radical change in buyer behavior. This is not simply a bet to the strategic investor, but more about what the fundamental investment thesis of the year is: the Digital Inflection Point.
It is an inflection point that sees the multi-billion-dollar investments made by companies in online sports betting and iGaming finally turn into a lucrative business venture instead of an investment venture that is capital-heavy. This is de-risking business models and justifying long-term growth strategies. With the industry maturing, one of the new landscapes is emerging, and this is providing unusual opportunities to investors who are able to consider which companies are most in a position to exploit this digital-first future. In this article, a comprehensive guide of the top 10 gambling stocks to strategically invest in 2025 will be given by breaking down their strengths, weaknesses, and growth potential.
The 2025 Gambling Market: A Story of Digital Dominance
The international gambling industry is in an exceptional growth trend, and its worth is expected to reach 618.69 billion in the year 2025. This growth is, however, not spread evenly. The first quarter of 2025 data gives a clear picture; the online segment is growing at a much faster rate compared to the land-based segment. Online gaming revenue increased by a whopping 15.3 percent over a period of one year, and land-based revenue increased by a meager 1.4 percent. This organisational transformation, driven by increasing mobile penetration and the ease of betting on the go, is one of the key themes upon which any gambler investor should bank.
The epicenter of this opportunity is the United States. The U.S. online sports betting market has already become a de facto duopoly, but the most notable event of early 2025 was that the digital operations of both MGM Resorts (BetMGM) and Caesars Entertainment (Caesars Digital) had finally reached profitability. This is a pivotal moment in the lives of these omnichannel giants because their digital investments are ceasing to be a drain on their capital but are currently paying off in the form of earnings.
In the online environment, iGaming (I.e., online casinos) is performing better in terms of growth compared to sports betting. The iGaming gross gambling revenue (GGR) increased by 27.3 percent in Q1 2025 and is greatly higher than the 13.6 percent in sports betting GGR. This signifies a vital development: with new markets coming to maturity, operators are profitably cross-selling sports bettors to more profitable iGaming products, which forms a strong and unexploited revenue stream.
Other than consumer behavior, technological innovation is also a major cause. Live casino games are becoming popular, and they replicate the real casino experience in real time. Immersive experiences are being investigated with the help of technologies such as augmented reality (AR) and virtual reality (VR), whereas artificial intelligence (AI) is applied to customize the user experience. The appearance of live betting in sports and branded online slots also points to the industriousness of the industry to establish an entertaining and dynamic user experience.
The Top 10 Gambling Stocks for Your 2025 Portfolio
Investors seeking to construct a resilient portfolio are advised not to focus on single-stock plays but rather to adopt a diversified portfolio that takes into account business models that differ. The best gambling stocks in 2025 can be classified into 4 strategic archetypes: Pure-Play Digital Leaders, Omnichannel Powerhouses, Regional and Niche Specialists, and Ecosystem Plays.
Pure-Play Digital Leaders: High-Growth, High-Risk
These companies are at the forefront of the digital revolution, offering investors direct exposure to the industry’s primary growth engine.
1. Flutter Entertainment (FLUT): Flutter is the most successful global digital gaming leader; therefore, its outstanding market position in the U.S. as the FanDuel brand makes it a preferred choice. It has an ideal pure-play digital model that fits the drift of the industry. The U.S. part was the main growth area during Q1 2025 as the revenue increased by 18% and adjusted EBITDA by five times. This supremacy enables a strong first-mover advantage and economies of scale.
Risks: A recent revenue miss in Q1 2025 and persistent regulatory changes are some of the potential challenges.
2. DraftKings (DKNG): Being the other part of the U.S. online sports betting duopoly, DraftKings has direct insight into the speed at which the digital market has been growing. It can take a larger portion of the market with its aggressive expansion strategy, and the acquisition of Jackpocket (digital lottery) can put it in a better position.
Risks: The downward revision of the full-year guidance by the company that occurred in Q1 2025, particularly, shows the instability of the sports betting market. Clearly, there is a persistent threat of intense competition with FanDuel.
Omnichannel Powerhouses: Blending Stability and Growth
These companies combine a resilient land-based core with a rapidly maturing digital segment, offering a compelling blend of stability and growth.
3. MGM Resorts International (MGM): MGM is a great example of an omnichannel play. Its quality, resilient land-based portfolio is a solid base, but the new profitability of its BetMGM venture and its positive EBITDA of 22m in Q1 2025 are its major attractions in 2025. This success risks its investment portfolio and justifies its digital strategy.
Risks: On land, the operations are susceptible to the economic headwinds, and they generate most of the revenue of the company.
4. Caesars Entertainment (CZR): Caesars is a powerful omnichannel player that has found a successful way of making the digital segment profitable. The Caesars Digital division made a significant milestone by recording a positive adjusted EBITDA of 43 million in the 1 st quarter of 2025. The huge customer loyalty scheme of the company (more than 60 million members) offers a potent cross-selling instrument, as it connects the company’s physical and digital assets.
Risks: In Q1 2025, land-based revenues experienced minor decreases, and a huge amount of debt is also an issue of concern to some investors.
Regional & Niche Specialists: Stable, Focused Plays
These companies target specific geographies or high-end demographics, offering a different kind of investment opportunity.
5. PENN Entertainment (PENN): PENN is a regional and locally-oriented operator that has a high-potential digital strategy anchored by exclusive cooperation with ESPN BET. This venture will offer unmatched brand awareness and effective market access to customers through a strong source of marketing and a rare opportunity to invest in the American regional market.
Risks: The Internet business is not profitable yet and is weighing down on revenues, and the company is very vulnerable to consumer behavior in local markets.
6. Red Rock Resorts (RRR): Red Rock is a pure play regional operator in the stable Las Vegas locals market. It focuses its investment thesis on a pipeline of new property openings and its supply-constrained position, which gives it a sustainable competitive advantage. That is why it can be considered an appealing choice for the investors, who prefer to use the business model, which is heavy on assets and oriented to locals.
Risks: Being a land-based operator mostly, it is susceptible to lower growth rates and economic sensitivities of that segment.
7. Wynn Resorts (WYNN): Wynn is a luxury, diversified operator that is highly exposed to Las Vegas and Macau high-end tourism. It has a strong brand name that it can use to earn a premium in the competitive market. The revival of high-end travel might become a strong impetus to this company.
Risks: The high-end consumer spending and international travel are very sensitive to the performance of the company.
Ecosystem Plays: Tangential Exposure to Broader Trends
These are not traditional gambling stocks, but they offer exposure to the broader convergence of gaming and digital entertainment.
8. Sharplink Gaming (SBET): Sharplink is a niche technology firm based in the affiliate marketing industry, which links sports fans with betting content. It provides investors with another opportunity to be involved in the gambling ecosystem without the risk of operator involvement. Its business model can be expanded, and it is directly related to the prosperity of the larger online gambling market.
Risks: It is a riskier and micro-cap-based form of investment, and its performance is largely reliant on the success and expansion of its clients.
9. Take-Two Interactive (TTWO): Take-Two is a play about the convergence between gaming and digital entertainment. The much-anticipated release of Grand Theft Auto VI presents a rare, short-term catalyst. The franchises of Blockbuster offered by the company contribute to its worldwide leadership in interactive entertainment.
Risks: Being a peripheral game, its performance is not necessarily related to the main gambling market, and it is very reliant on a single, big release.
10. Roblox Corporation (RBLX): The future of social and user-generated content is a speculative yet interesting ecosystem play, which is potentially linked to the recent trends on social gambling at Roblox. It is in a good position to take advantage of the emergence of the metaverse and community-driven entertainment.
Risks: The company has shown negative net profits since the beginning and is therefore a high-risk, speculative growth investment. Any revenue that is related to gambling is oblique.
