Sports betting stocks are set for growth in 2025 as the sector continues to attract customers with rising revenue. Sports gambling brought in $13 billion in 2024 and experts predict this number will increase to roughly $17 billion this year. This has traders weighing investment options to benefit from the expected gains.
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The two top options traders will want to consider are Flutter Entertainment’s (FLUT) FanDuel and DraftKings (DKNG). Together they hold up to 72% of the U.S. sports betting market. This makes either of them a solid investment for traders seeking established winners in the space. One potential negative to consider is FanDuel’s guidance update of $1.59 billion in U.S. revenue in Q4 2024. That would miss Wall Street’s estimate of $1.97 billion.
Should Investors Bet on FLUT or DKNG?
Using the TipRanks comparison tool, investors can see which of these two stocks offers the most potential in 2025. Interestingly, FanDuel and DraftKings are fairly even in their investment opportunities. Both carry a Strong Buy rating with FLUT having a 32.61% upside potential compared to DKNG’s 33.61% upside potential. The main difference is the price target, with FLUTs being $339.33 and DKNG’s being $51.24.
Other Sports Betting Stocks to Consider
While FanDuel and DraftKings dominate the sports betting sector, other companies are pushing into the market. That includes traditional gambling companies MGM Resorts (MGM) and Caesars Entertainment (CZR). Both have created units dedicated to serving customers in the sports gambling space.
Considering the large size of MGM Resorts and Caesars Entertainment, their sports betting units could experience major growth in 2025. That means investors might want to consider stakes in them to gain exposure to up-and-coming companies in the sector. They can weigh these options with the stock comparison info below.
