US iGaming Stocks to Look out for in 2024

The burgeoning US iGaming market, with its rapid expansion and increasing legalisation across states, presents a compelling investment opportunity. The industry’s growth, fueled by technological advancements and changing consumer behaviours, has positioned iGaming stocks as attractive options for investors looking to tap into the lucrative online gambling sector. This article explores key players in the US iGaming market, highlighting their potential for growth and reasons they stand out as promising investment opportunities.

DraftKings Inc. (DKNG)

DraftKings, a leader in the online sports betting and fantasy sports market, has seen remarkable growth since its inception. With sports betting now legal in numerous states and more states expected to follow suit, DraftKings is well-positioned to capitalize on the expanding market. The company’s innovative platform, strategic partnerships with major sports leagues, and aggressive expansion strategy underscore its potential for long-term growth. Investors should watch DraftKings for its ability to scale operations and enter new markets, making it a standout choice in the iGaming sector.

Penn National Gaming (PENN)

Penn National Gaming, with its strategic investment in Barstool Sports, has positioned itself as a significant contender in the sports betting and online casino market. The company’s extensive portfolio of gaming and racing facilities across the US, combined with its foray into digital gaming, offers a diversified approach to the iGaming space. Penn National’s commitment to expanding its online presence and leveraging the Barstool brand to attract a younger demographic suggests robust growth potential, particularly as it continues to launch online sports betting and casino operations in new states.

MGM Resorts International (MGM)

MGM Resorts International, through its online gaming division BetMGM, has aggressively pursued opportunities in the online sports betting and casino market. A joint venture with Entain, BetMGM benefits from MGM’s established brand and extensive customer base, along with Entain’s technological expertise. MGM’s strong financial position, combined with strategic partnerships and an expanding online footprint, make it a compelling investment option. The company’s efforts to integrate online gaming with its land-based operations offer a unique omnichannel approach, enhancing customer engagement and loyalty.

Furthermore, MGM Resorts International, through its BetMGM platform, is rapidly becoming a go-to USA online casino for UK players in search of a more enjoyable and entertaining gaming experience. This surge in popularity among UK players can be attributed to BetMGM’s extensive selection of games, including exclusive titles and live dealer options that offer an immersive casino experience reminiscent of what players might find in a physical MGM property. The platform’s commitment to quality, combined with MGM’s renowned hospitality and entertainment standards, transcends geographical boundaries, appealing to UK players who value a premium online gambling experience. BetMGM’s user-friendly interface, attractive bonus offers, and the reliability of the MGM brand further enhance its attractiveness, making it a preferred choice for UK players seeking diverse gaming options and the assurance of playing with one of the most respected names in the casino industry.

Caesars Entertainment (CZR)

Caesars Entertainment has emerged as a powerhouse in both land-based and online gambling. The company’s nationwide presence and established brand equity, coupled with its ambitious plans to expand its online sports betting and casino platforms, underscore its growth potential. Caesars’ focus on building a seamless user experience across its digital and physical properties, along with its robust loyalty program, positions it well to capture a significant share of the iGaming market.

In a strategic move that significantly bolstered its position in the global gaming market, Caesars Entertainment’s acquisition of William Hill, one of the leading UK bookmakers, marked a pivotal moment for the company. This acquisition not only expanded Caesars’ footprint in the sports betting and online gambling sector but also provided it with invaluable expertise and a robust platform renowned for its sports betting offerings. William Hill’s long standing reputation as a premier bookmaker in the UK, combined with its advanced betting technology and extensive market knowledge, has been instrumental in enhancing Caesars’ sports betting operations. The merger has allowed Caesars to offer a more comprehensive and sophisticated sports betting experience to its customers, leveraging William Hill’s innovative betting options and user-friendly interface. This integration has positioned Caesars Entertainment as a formidable contender in the rapidly growing US sports betting market, while also offering potential cross-market opportunities that could appeal to a broader international audience, including UK players familiar with the William Hill brand.

Flutter Entertainment (FLTR)

Though headquartered in Dublin, Flutter Entertainment plays a pivotal role in the US iGaming market through its ownership of FanDuel, a leading sportsbook and fantasy sports provider. Flutter’s diversified portfolio, which includes PokerStars and other international betting brands, offers exposure to global online gambling markets. FanDuel’s dominant position in the US sports betting market, aggressive marketing, and product innovation highlight Flutter’s investment appeal. The company’s international presence and operational expertise provide a solid foundation for growth as the US market continues to mature.

Conclusion

The US iGaming industry’s trajectory points toward continued expansion and innovation, driven by legislative progress and evolving consumer preferences. For investors, companies like DraftKings, Penn National Gaming, MGM Resorts, Caesars Entertainment, and Flutter Entertainment represent strategic entry points into this dynamic market. These stocks offer a blend of operational excellence, strategic vision, and market leadership, positioning them as front-runners in the race to capitalise on the burgeoning US iGaming sector. As with any investment, potential investors should conduct thorough research and consider the long-term prospects and risks associated with the iGaming industry.