In recent months, we’ve noticed an exciting trend in the gambling industry, especially with stocks. One standout is Flutter Entertainment plc (NYSE:FLUT). This company is making waves as one of the hottest gambling stocks in 2025.
The sports betting scene in the US has really taken off. Just seven years ago, the betting volume was around $400 million. Fast forward to 2024, and that number soared to an astonishing $14.2 billion! More and more fans are looking to spice up their sports viewing experience with betting, and companies are eager to cash in on this booming market.
For investors, this growth represents a golden opportunity. While many smaller companies in the sector might skyrocket, it’s essential to remain cautious due to the regulatory challenges. These hurdles mean that investing in gambling stocks isn’t yet as straightforward as it could be.
Despite these challenges, some companies are rising to the top. Many stocks in this sector are outperforming the broader market, and we expect this trend to continue into 2025. We’ve put together a list of the top gambling stocks making headlines this year.
Our criteria for the list included companies with a market cap of at least $100 million, specifically those outperforming the S&P 500.
Flutter Entertainment operates primarily in Europe and the US, focusing on various markets including Australia, the UK & Ireland, and more. Their products range from fantasy sports to online casino gaming. So far this year, FLUT’s stock has risen by 15.62%, significantly better than the S&P 500, which has only grown by 4.19%.
In the competitive arena of sports betting, Flutter’s FanDuel is a strong contender against DraftKings. Together, they hold a remarkable 74% market share. However, this dominance attracts scrutiny from regulators, as seen when two US senators raised concerns about potential anti-competitive practices.
In the third quarter, Flutter reported a stunning revenue growth of 51%, which has fueled optimism for their upcoming earnings report.
Currently, Flutter ranks 8th among the hottest gambling stocks of 2025. While FLUT shows promise, some analysts believe certain AI stocks might offer even better returns in a shorter timeframe.
For those curious about AI investments, there are standout stocks that could be just as promising as FLUT but with a more attractive price-to-earnings ratio.
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