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Read on as we evaluate seven of the best sports betting stocks in the market. Each of these picks provides access to gains in sports wagering, though some are more direct bets on the trend, while others are more diversified plays on gambling generally. Analysts love the stock and the online gaming industry in which it competes. DraftKings will be helped with its recently announced partnership with ESPN that will make it an exclusive provider of fantasy sports, as well as a co-exclusive partner for gambling link-outs.

If you're a sports fan, you know how vital a relationship with ESPN could be to growing its future customer base. The venture capital people behind this SPAC also were a lead investor in Pinterest's PINS first round of seed financing and invested in every subsequent round of funding. Investors shouldn't worry. Robins will continue to focus on his day job of running DraftKings. FanDuel and DraftKings called off a planned merger due to regulatory concerns a little more than three years ago.

As a result, the Federal Trade Commission sued to block the transaction from making it to the finish line. Wisely, the powers that be saw a long, drawn-out legal battle as expensive to wage and terrible for each business's overall focus. Paddy Power contributed its U. Analysts predicted at the time that annual sports betting in the U. Despite the shutdown of sports during the pandemic, Flutter focused on its U. But recent moves to put it among the most noteworthy sports betting stocks are providing reason for optimism.

On Sept. The arrangement includes a series of social media and traditional advertisements under a campaign dubbed the "King of Sportsbooks. Look for its sports betting business to gain traction in and beyond. Barstool has 66 million monthly users that Penn would like to convert to sports bettors. Barstool plans to launch in Illinois and Colorado next, further bolstering its position among sports betting stocks. According to Morgan Stanley analysts, the Barstool app had 21, downloads per day in its first weekend live, breaking both DraftKing's and FanDuel's daily records.

Despite the big draw in its first weekend, analysts suggest that Barstool's gains didn't come at its peers' expense. This indicates that the sports betting market in the U. The merged business, which Reeg runs, owns and operates more than 55 casino properties in 16 states with a loyalty program that's 60 million strong. Eight of these casinos are on the Las Vegas Strip. Reeg said in the company's Q2 conference call that a decision on its iGaming and sports betting operations could be made before the end of the year.

The sign of a resilient stock is one that's able to deliver positive results despite everything going on around it being anything but ordinary. In , the Belmont went first in June, the Derby was second in early September, and the Preakness will be run on Oct.

The Derby's break with tradition didn't end there — it was held without any fans in the stands, so no grand hats, no mint juleps. But longtime owners of Churchill Downs stock have become accustomed to such returns. Over the past decade, CHDN shareholders have enjoyed an annualized total return of One of the reasons for these above-average returns is its diversification of revenue streams to include online wagering for horse racing through TwinSpires. CHDN is as resilient as sports betting stocks come.

Look for Churchill Downs to continue to benefit from the boom in sports wagering. It provides both real money and simulated iGaming and sports betting software and gaming applications to these casinos. The U. GAN's stock currently is on a downswing, however. They have known brands, regulators sometimes require a physical presence to operate in a state, and there can be synergies between real-world and online casinos.

That's the space that MGM Resorts is trying to fill, and it's done so relatively well in Like DraftKings, the company is limited by what's legal in the U. What I like about MGM as a sports betting play is that it has a foundation as a physical casino company. MGM can use the cash flow from its casinos to fund online gambling development, and if it does that successfully it should add a lucrative business to the portfolio.

DraftKings and MGM are the companies that are taking bets and building the apps that consumers are using, but GAN is building the background infrastructure that online gambling is built on. Its software services include player identity validation, payment services, regulatory reporting, and even some game content.

And with the recently announced acquisition of Coolbet, it'll enter the sports betting market worldwide. If sports betting continues to grow, GAN will be one of the beneficiaries because it's providing services to multiple players. And I would expect some casinos and game companies that don't have the capital to build their own infrastructure to lean on a company like GAN. What's exciting about GAN is that it has the opportunity to grow with the online gambling and sports betting industries as well as grow the services it offers to clients.

It already has a turnkey solution for infrastructure, but don't be surprised to see more games added to the portfolio so GAN can white-label the entire casino experience. That's where the real money will be made for this gambling stock.

As more states are added to the legal betting industry, the amount bet on sports online is growing. The industry saw U. If the industry keeps growing at this rate, it could rival the revenue of physical casinos, and that would be a truly disruptive development in gambling.

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