The U.S. Supreme Court struck down the federal ban on sports betting in a 2018 decision, opening the doors for states to legalize it if they wish. Since then, 39 states, the District of Columbia, and Puerto Rico have legalized sports betting in some form, many allowing online bets.
Five top sports betting stocks in 2026
As more states legalize sports betting, the market is growing quickly. Not only are new states easing restrictions, but betting is also growing more popular each year in states that have already legalized it. If you want to invest in this rapidly growing industry, here are five options to consider:
| Name and ticker | Current price | Market cap |
|---|---|---|
| Flutter Entertainment Plc (NYSE:FLUT) | $102.02 | $17.9 billion |
| DraftKings (NASDAQ:DKNG) | $21.62 | $10.7 billion |
| MGM Resorts International (NYSE:MGM) | $37.01 | $9.5 billion |
| Caesars Entertainment (NASDAQ:CZR) | $26.43 | $5.4 billion |
| Penn Entertainment (NASDAQ:PENN) | $15.03 | $2.0 billion |
1. Flutter Entertainment
NYSE: FLUT
Key Data Points
Flutter Entertainment (FLUT +2.53%) is a sports betting and gaming company operating in the U.K., Ireland, Australia, and the United States. Among its U.S. properties is FanDuel, the country's most popular online sports betting site.
Flutter estimated FanDuel's 2025 share of online sports betting at about 44% within the markets it operates. That's only a slight drop from its 47% estimate from 2023, despite the growing market size and competition.
FanDuel's sportsbook is available in 23 states, and its online casino is available in five. Flutter is consistently reinvesting its profits in customer acquisition and expanding the market for sports betting and internet gaming. The results speak for themselves, with leading market share and strong top-line growth.
Outside the U.S., Flutter is also the leading operator in the more mature U.K. and Irish markets, which are the largest in Europe. As more betting shifts online, Flutter is positioned to win a greater share. In Australia, it operates SportsBet, which Flutter claims holds a 45% market share of online sports betting. It continues to expand internationally through strategic acquisitions such as NSX (Brazil) and Snai (Italy).
2. DraftKings
NASDAQ: DKNG
Key Data Points
DraftKings (DKNG +3.30%) operates the second-largest online sportsbook in the U.S., accounting for about 34% of the market. It currently operates in 25 states and Washington, D.C., and its online casino is available in five states.
DraftKings is solely an online operator in the U.S. and Canada. It doesn't have any brick-and-mortar casinos, so it's a pure play on the growth of online sports betting in North America. Given the expected expansion of online sports betting in the U.S. and Canada, its online-only presence gives the company great growth potential.
DraftKings is executing well and growing its market share quickly. It added 3 million active customers in 2024 and another 700,000 through the first nine months of 2025 despite strong competition from new entries into the market. As a result, net revenue is growing quickly, and earnings before interest, taxes, depreciation, and amortization (EBITDA) growth is strong.
3. MGM Resorts
NYSE: MGM
Key Data Points
MGM Resorts (MGM +3.71%) is one of the biggest casino operators in the U.S. and Macau. It also jointly owns BetMGM's U.S. operations with Britain's Entain, and in 2022, it acquired LeoVegas, a leading sports betting and iGaming operator in 10 European countries. MGM uses LeoVegas to offer BetMGM-branded services outside the U.S.
BetMGM's growth slowed in the second half of 2025. Its sportsbook handle grew just 16% for the full year but only 3% in the fourth quarter. That said, it's increasingly profitable as it executes its strategy of focusing on profitable players.
MGM's brick-and-mortar operations will expand to Japan in the next decade, when it opens the country's first legal casino in Osaka in 2030. That could be a big opportunity in the long run. In the meantime, operations in the U.S. and Macau have recovered and are moving past pre-COVID-19 pandemic levels.
4. Caesars Entertainment
NASDAQ: CZR
Key Data Points
Caesars (CZR +3.65%) is best known for its Caesars Palace casino in Las Vegas, but after its acquisition by Eldorado (which took the Caesars name), it now operates more than 50 casinos across the U.S. The company then acquired William Hill, which pushed it into the online sportsbook market in the U.S. It rebranded William Hill's operations to Caesars Sportsbook.
The company operates in 32 jurisdictions in North America, 25 of which include online sports betting and five that include internet gaming. Management has cut back on aggressive ad campaigns, which has resulted in some share loss. However, the digital segment now generates positive EBITDA and could produce positive net income for the business.
Caesars will likely continue to focus on acquiring brick-and-mortar casinos to add to its growing portfolio. Meanwhile, it's building two more casinos in Las Vegas. After facing large setbacks due to the COVID-19 pandemic, its operations in Macau and Singapore also hold potential.
5. Penn National Gaming
NASDAQ: PENN
Key Data Points
Penn (PENN +7.43%) operates 42 casinos across 19 states, and it moved into the world of online sports betting with the acquisition of a 36% stake in Barstool in 2020 and theScore in 2021. In 2023, it partnered with ESPN to launch ESPNBet, rebranding some of its retail locations with the ESPNBet name. Both sides terminated the agreement in 2025, rebranding Penn's online sportsbook to theScore.
Its online sportsbook has licenses in 20 U.S. jurisdictions and Ontario, and its online casino is available in four states and Ontario. Of its brick-and-mortar casinos, 32 operate retail sportsbooks across 15 states.
Penn has been less aggressive in marketing its online sportsbook, sticking to more targeted ads versus nationwide brand campaigns. It's also been a beneficiary of Barstool's and theScore's media segments for more organic advertising of its sportsbook.
As a result, the company has been more profitable than other online sportsbooks, which must invest heavily in marketing. With operations confined to the U.S. and Canada, Penn is more of a pure play on the continued expansion of sports betting in North America.
How to invest in sports betting stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Pros and cons of investing in sports betting stocks
As with any industry, there are pluses and minuses to investing in sports betting stocks.
Pros
- The U.S. is still in its early days of legalized sports betting, and many states have yet to fully legalize it. That provides significant growth opportunities.
- Technological advances and data collection provide additional growth opportunities to expand the market with more betting products and broader event coverage.
Cons
- Federal law and regulations could curb U.S. sports betting, such as the new limit on gambling loss deductions in the latest tax legislation.
- Prediction markets present a new competitive threat to dedicated sports betting companies.
What to look for when investing in sports betting stocks
There are a few important factors to consider when picking a sports betting stock to buy, including:
- Does the company have a strong, established brand that provides a competitive moat?
- Does it have better technology than its peers, enabling it to offer more bet types at good prices?
- Is it focused on the fast-growing and rapidly changing U.S. market, or does it have more exposure to well-established international markets?
Future of sports betting stocks
Sports betting is a well-established industry in many countries, but the U.S. -- one of the biggest potential markets in the world -- is still in its infancy and remains in flux. As a result, the future of sports betting stocks, particularly those with a big concentration of business in the United States, is somewhat uncertain.
The trend favors more and more U.S. states legalizing sports betting, providing a tailwind to sports betting companies. However, there are a couple of factors that could temper growth.
First, the U.S. reduced the amount of tax-deductible gambling losses allowed, which could curb engagement. Second, prediction markets have been created that use futures contracts to get around the need for state-by-state legalization. The development presents a competitive threat and a loophole that reduces the barrier to entry.
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