Casino Stocks to Watch In 2026

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While playing at casinos is pure entertainment, investment is a serious business and not something you really want to gamble on.  For investors, gambling stocks can be a great place to stash some money, as the market shows no signs of slowing down. According to the American Gaming Association, 2025 was a record-breaking year, with commercial gambling revenue up 8.7% from the previous year. 

 

By the end of November, the market was recorded as worth USD71.49 billion. Traditional gaming accounts for USD46.62 billion. This was up 2.8% on the same period the year before, indicating that the surge in online gaming is not cannibalizing the market as some had feared. The most significant growth was in the iGaming vertical, which rose by 28.3% to USD9.7 billion. Sports betting accounted for a very healthy USD15.03 billion, up 17.4%. Overall, a very healthy market. 

 

While the overall market is showing consistent growth, not all companies are thriving, and the competition is tough out there. Although the American market as a whole is vast, the gambling industry is regulated at the state level, meaning different rules apply by location, which can create a relatively fragmented scene. While iGaming revenue is not a million miles off USD10 billion, the practice is only legal in seven states. By comparison, sports betting is legal in more than four times as many states (30), but only worth 50% more. 

 

So, while growth in iGaming is strong, some think the market ceiling is lower (unless more states legalize it). However, that could all change if New York and Virginia's latest legislative pushes bear fruit.  

 

The New York Senate bill 2614, in particular, could be a complete game-changer. Sweepstakes platforms have been pushed out of the New York market, and the state has completed the politically sensitive process of awarding the downstate casino licenses to Bally's Bronx, Resorts World New York City, and Metropolitan Park. The retail casino licenses are a significant step, as Gov. Kathy had previously suggested that there could be no gaming expansion until the downstate licensing process was complete. This will be an interesting situation to watch develop over the coming months.

 

In Virginia, things are probably slightly more tentative and could be an uphill battle. The idea here is that each of the state's five licensed land-based casinos could obtain an internet gaming operator license and host up to three online platforms (or skins) each. However, as the retail industry has yet to fully establish itself (two of the five brick-and-mortar casinos are still under construction), Boyd Gaming and Cordish Companies estimated opening their doors in 2027. Historically, a healthy retail sector has been key to the success of legalizing iGaming, and Cordish has a reputation for opposing online platforms in other states. 

 

While lawmakers in multiple states have been reluctant to move forward due to concerns about the potential impact on traditional casinos, the figures are telling a different story.  The fastest payout online casinos are proving popular with players in legalized iGaming markets and are a wise choice for those looking to invest in the sector. Performing strongly at the moment, both in terms of stock and payout-to-player speeds, includes MGM. Caesars Entertainment and Full House Resorts are also getting favorable ratings from expert analysts. 

 

However, when you look at the online sector, DraftKings is a dominant player and one of the largest online sports betting and iGaming operators in the US. Having a foot in both these camps allows it to operate wherever online gambling is allowed and gives it a massive advantage. Playtika is also highly tipped as a highly cash-generative business model (it operates social-casino titles Slotomania and Caesars Slots). However, the sweepstakes casino market could stagnate now that the huge Californian and New York markets have barred this kind of operation. As long as social casinos continue to evolve and initiate exciting gaming choices, the market should remain attractive.

 

If DraftKings is one of the biggest in the online sector, FanDuel is the one that is showing the strongest growth. Flutter acquired a controlling stake in the company in 2018 and now holds 100% ownership following a new arrangement with Boyd. If the words of their CEO, Peter Jackson, are to be believed, their shareholders and investors could be cashing out a jackpot.

 

In July 2025, he said,

 

"Our acquisition of FanDuel in 2018 is one of the most transformational events in our Group's history, with its natural competitive advantages combined with access to Flutter Edge capabilities driving impressive growth to become the well-established and clear leader in US online sports betting and iGaming. I am really pleased to drive future value for our shareholders by increasing our ownership of FanDuel to 100%. Boyd have been fantastic partners for FanDuel, and we are delighted to be extending our important strategic partnership through to 2038."

 

FanDuel was the dreamchild of Nigel Eccles and a team of fellow entrepreneurs. Ironically, when it was bought out by Paddy Power Betfair, the $465 million evaluation was not enough for the core employees and founders to make any money through the acquisition. That has been a salutary lesson to other smaller online gaming and casino operators. There are several niche ones that are currently attracting investor attention, including Double Down Interactive, Inspired Entertainment, PlayStudios, and Skillz.

 

·      Inspired Entertainment fulfills an interesting role as a B2B supplier offering digital content to online operators. 

·      Skillz is a notable pure-play option for the mobile gaming market.

·      PlayStudios operates in a unique space in mobile gaming, offering free-to-play social casino games rewarded with real-world experiences rather than cash.

·      Double Down Interactive also operates in the social and sweeps vertical, specializing in casual and hyper-casual games.

One of the biggest attractions in the iGaming sector has been the rise of Live-Dealer casino games. Evolution is the operator that controls the lion's share of this market, supplying games to Bet365, DraftKings, FanDuel, Flutter, Kindred, Entain, and all the other big players. While the action might appear to be coming directly from the floor of the casino, it actually originates in one of Evolution's specialist studios. Live dealer is the fastest-growing iGaming vertical, and Evolution is the only global operator. If live dealer is where you want to invest, Evolution is the operator to follow.

 

Taking everything into consideration, the online sector appears to be a sound investment bet and a top buy opportunity.