15 Best Gambling Stocks to Buy Now

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In this article, we discuss the 15 best gambling stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Gambling Stocks to Buy Now.

In 2020, as a result of the lockdown in reaction to the global pandemic, several brick-and-mortar casinos saw a sharp drop in revenue with casinos and bookies operating at a reduced capacity and others forced to shut down. However, with technologically-driven transformational advances and the resumption of brick and mortar casinos, the gambling industry is set to be among the fastest-growing in the world with over 1.6 billion gamblers worldwide. According to Research and Markets, the worldwide gambling market is predicted to expand from $465.76 billion in 2020 to $516.03 billion in 2021, at a CAGR of 10.8%.

The Rise of Online Gambling

While many brick-and-mortar casinos were forced to shut down during the global pandemic, online gambling grew in popularity. The internet gambling sector saw a potential economic opportunity as the pandemic hindered physical engagement. According to a report from The Business Research Company, the online gambling market is predicted to increase at a 12.0% annual pace from $58.96 billion in 2019 to $92.86 billion in 2023 at a CAGR of 10.4%.

One of the top companies in online gambling DraftKings Inc. (NASDAQ:DKNG) saw a huge increase after its IPO in 2020. The company was one of the pioneers who started their online presence in 2018 offering online versions of casino games like slots and roulette, as well as sports betting. During the pandemic, as the world of online gambling flourished, DraftKings Inc. (NASDAQ:DKNG) seized the chance to expand its platform. In Iowa, the corporation launched retail and online sports betting, and it recently launched iGaming and online sports betting in Pennsylvania.

The development of online casinos drew the attention of many established casinos. For example, in 2020, global entertainment company MGM Resorts International (NYSE:MGM) launched its mobile betting app BetMGM in partnership with Roar Digital, LLC. In the first three months of 2021, the app made $163 million, accounting for 90% of its total revenue in 2020. MGM Resorts International (NYSE:MGM) currently has a market cap of $18.61 billion and offers a dividend yield of 0.026%.

Earlier this year, PENN National Gaming, Inc. (NASDAQ:PENN) also saw positive returns in the online gambling world and announced plans of launching its Barstool Sportsbook mobile app in Virginia which was earlier launched in Pennsylvania, Michigan, Illinois, and Indiana. The app has over 72,000 registered users in Pennsylvania alone. In the first quarter of 2021, PENN National Gaming, Inc. (NASDAQ:PENN) reported $1.27 billion in revenue which was driven by contributions from the online Barstool Sportsbook and our iCasino platforms.