3 Online Gambling Stocks to Bet On for a Super Bowl Boost


  • Online sports betting firms fulfill long-held fan expectations, validating industry potential.
  • DraftKings (DKNG): Shares surged 140% in 12 months post-expansion into new U.S. states.
  • Caesars Entertainment (CZR): Analysts strongly recommend CZR with a $78 target, projecting a 73% upside from its current value.
  • Penn Entertainment Inc. (PENN): Its financials are strengthening. If sustained, its current valuation makes it an appealing stock.
Super Bowl - 3 Online Gambling Stocks to Bet On for a Super Bowl Boost

Source: shutterstock.com/Sergey Nivens

As more U.S. states welcome online gaming, big-name casinos and fresh online betting startups jump on board. On the other hand, Macau is still the land of gambling in Asia. It offers hefty rewards for certified and legitimate operators.

Slowly recovering from the impacts and damages caused by Covid-19, online gambling sites and casinos are now making a rebound. Additionally, online sports betting and gambling are legalized in most U.S. states. Further, stock related to the industry are impressively gaining traction.

Let’s bet on three excellent online gambling stock choices you may want to add to your portfolio, ahead of the highly-anticipated Super Bowl this weekend.

DraftKings (DKNG)

Draft Kings app

If you’re looking for the best, piping hot online betting stock, DraftKings (NYSE:DKNG) should be first on the list.

As one of the most popular online sports gambling companies worldwide, it’s gaining more traction because of the upcoming Super Bowl 2024. DKNG stock closed at an impressive $41.95 this past week, rising nearly 1%. This has beat down S&P 500’s average, making the stock a hot consideration for the near-term.

Additionally, longer-term investors are anticipating the company’s next earning report on February 15. Projections are for 7 cents EPS, and a whopping $1.22 billion revenue. During the first three quarters of 2023, DraftKings saw a revenue increase of more than 75% due to some states legalizing online sports and betting. Those states include Kentucky, Pennsylvania, and Massachusetts, but major markets like California remain untapped.

Despite competition from other key online gambling players, DKNG benefits from the expanding global sports betting market. It is predicted to hit $182.12 billion by 2030. This amounts to a 10.3% compounded annual growth rate (CAGR) from 2023. While facing early losses expected in startups, the company made strides toward profitability. They reduced 2023 operating losses from $1.3 billion to $745 million. 

Caesars Entertainment (CZR)

Caesar's Palace (CZR) in Las Vegas
Source: Jason Patrick Ross/Shutterstock.com

While Caesars Entertainment (NASDAQ:CZR) hasn’t made too much noise over the past year, the company still remains resilient in this turbulent market environment. Despite not having the attention it deserves and with uncertainties looming, CZR has solid occupancy rates in Vegas and a long track record of growth.

With a market capitalization of over $21 billion, CZR is in excellent condition to compete with other online gambling players. Analysts expect the company to see a revenue increase to $13.26 billion, which would put it in the upper echelon of gaming companies overall.

Caesars Entertainment is considered a cost-effective entertainment choice and trades below the sector average, with analysts predicting significant growth. Plus, insiders are confident, earning CZR stock bullish ratings from analysts.

Penn Entertainment (PENN)

In this photo illustration, the Penn Entertainment (PENN) logo is displayed on a smartphone mobile screen.
Source: rafapress / Shutterstock.com

The third one on this list of top online betting stocks is Penn Entertainment (NASDAQ:PENN).

Now, 2023 was one of the slowest for the company, and undoubtedly a low point for investors. However, the company has since seen much better potential, with its stock price holding up relatively wall. The company’s management team appears to be moving strategically deeper into the world of online gaming. And that’s something investors like to see.

Notably, Penn’s Q3 earnings beat estimates, with EPS coming in at $1.21. Bank of America has placed a price target on PENN stock of $30, suggesting optimism as large institutions show interest in the name. The new Hollywood Casino Joliet, a $185 million project, promises job creation and expands PENN’s Chicagoland presence with slots, table games, and sportsbooks.

With the company’s recent ESPN partnership, Penn continues to tap into online growth potential, potentially boosting profitability and stock value.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/3-online-gambling-stocks-to-bet-on-for-a-super-bowl-boost/.

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