The Best Gambling Stocks for 2021

It is no secret that the international gambling industry has changed shape dramatically over the course of the last 12 months. From the legalization of remote gambling across the US creating multi-million-pound opportunities for operators, suppliers and affiliates to the ever-changing legislation that surrounds online betting and casino markets in Europe, it is safe to say that we are in the midst of an industry overhaul.  

While change is something many of us steer away from, from a commercial point of view, such huge shifts bring equally huge opportunities. This is why in recent months, many investors have started to look at gambling stocks when building or diversifying their portfolios, taking advantage of these industry changes and their impacts on gambling-related shares.  

In this blog, we take a look at the best gambling shares tipped to be ‘sound’ investments for 2021, drawing on data and commentary from some of the world's leading analysts and industry figureheads.  

DraftKings  

From penning a deal with ESPN to provide fantasy sports betting exclusively to establishing a strong userbase of active players across various states, DFKG shares were the talk of the financial world in 2020. 

DraftKings shares are set for another bull run in 2021. After successful ventures in 2020 and a number of partnerships agreed across the US, DraftKings expect 2021 to be another significant year of growth. With New York and other major states like California and Texas on the cusp of legalizing gambling, analysts predict that revenue will surge 53% in the coming year. 

Flutter  

While much talk has surrounded DraftKings, it is important to not overlook Fanduel; one of Draftking's most significant competitors. With its value reaching $11.2bn last year after further investment from Flutter Entertainment, many investors are looking at purchasing shares in both Fanduel and Flutter. However, Ross Klein, founder and chief investment officer (CIO) of Changebridge Capital, lays out the case of why Flutter is the better bet of the pair. 

“With the regulatory tides shifting in favor of more responsible gaming, Flutter is in a unique position to capitalize on a greenfield marketplace,” said Klein in an interview.  

“In the US, Flutter owns FanDuel, Pokerstars, FoxBet, and TVG Racing, providing them with a diverse portfolio of brands to penetrate this growing market.” 

Caesars  

Caesars are finally starting to take online gambling after being criticised for its ‘slow-burner’ approach.  

“We’re looking at different activities and bolt-on acquisitions. William Hill’s European business can definitely fall under that category,” Caesar’s CEO Itai Pazner told. 

MGM Resorts

Although the Coronavirus pandemic has a hugely negative impact on MGM’s income and profit, things are looking up for the gambling brand in 2021. While they are no longer in takeover talks with Entain, MGM is still spoken about favourably by investors and analysts. This was enhanced by the brand and the Detroit Lions of the NFL announced their partnership. 

Penn National Gaming  

Heavily publicised for its deal with Barstool Sports, Penn National Gaming now boasts 66 million+ monthly users, making it a great force to be reckoned with in the igaming industry.  

Bragg Gaming Group 

With its ongoing success in the European gambling market, Bragg Gaming Group has the potential to start seeing opportunities to expand overseas and become another strong contender in the US market. 

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