From MoneyWeek · · 1m 50s
Gambling Stocks to Buy Now
US gambling boom offers value picks amid prediction markets and regulation.
In brief
US gambling boom offers value picks amid prediction markets and regulation. DraftKings, Flutter, Entain and Las Vegas Sands show strong growth potential despite regulatory risks. Originally reported by MoneyWeek.
Gambling sector growth
The gambling sector could achieve global annual sales of $700 billion by 2028.
US gambling boom
US commercial gambling revenue reached $78.7 billion in 2025 with sports betting up 22.8% to $17 billion.
Legalization impact
US Supreme Court struck down federal ban on sports betting in 2018, leading to state-level legalization.
Prediction markets rise
Prediction markets are regulated as financial products by the CFTC, bypassing state regulations.
Prediction market benefits
Prediction markets could improve election forecasting accuracy and reduce insurance costs.
Prediction market competition
Prediction markets took 27% of US sports betting volume during World Cup events.
Regulatory challenges
European regulators have launched action against prediction markets, while Brazil banned gambling.
Casino resilience
Las Vegas casinos now make 66% of revenue from entertainment, not gambling.
DraftKings growth
DraftKings sales grew nearly tenfold between 2020 and 2:025.
Flutter value
Flutter trades at 10.5 times 2027 earnings with revenue nearly tripling since 2020.
Entain potential
Entain's share price fell 50% in a year despite 75% sports betting revenue.
Las Vegas Sands
Las Vegas Sands focuses on Macao and Singapore with 2027 P/E of 11 and 3.5% yield.
MGM Resorts
MGM Resorts owns 17 gambling resorts with 2027 P/E of 14.9.
Prediction market growth
RobinHood sales grew tenfold year on year with prediction markets expanding rapidly.
Regulatory risks
US gambling faces increased regulation with tax rises and class-action lawsuits.
What's next
Prediction markets and traditional betting firms will coexist with evolving regulatory frameworks.
What matters most
DraftKings, Flutter, Entain and Las Vegas Sands show strong growth potential despite regulatory risks.
