Deep Dive: DraftKings is among 14 stocks that stand out among online gambling companies and casinos

by | Apr 19, 2023 | Stock Market

We have come a long way from the days when legal gambling, in a state such as New York, was restricted to race tracks and the state’s own depressing Off Track Betting locations. Now, with so many casinos dotting the landscape and online gambling platforms becoming important sponsors for major sports leagues, you might think the market is saturated.

But it might not even be close. Taking a broad look at humans’ love for gambling, below is a screen of three exchange-traded funds that hold shares of companies involved with online betting or casino operations worldwide. We narrowed down the list to those favored by analysts and expected to grow the most quickly through 2025. The ETFs might be the best way to invest in the gambling space with diversification, but a look at individual stocks may also be of use, as part of your own research. Online sports betting was legalized in New York in 2022, but it is still technically illegal in California, Texas and Florida, to name a few states. One of the best-known online sports betting companies is DraftKings Inc.
which is emphasizing rapid growth rather than profits. The company isn’t expected to turn a full-year profit until 2026, according to estimates among analysts polled by FactSet. For this group of risky stocks, investors’ focus is sales growth. But in his February letter to shareholders, DraftKings CEO Jason Robins wrote that he expected the company to achieve its “first year of positive Adjusted EBITDA in fiscal y …

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