Sports Betting Stocks
7 stocks · Updated Mar 25, 2026
Sports betting stocks cover companies operating legal wagering platforms on professional and college sports, a market that has expanded rapidly since the Supreme Court's 2018 PASPA ruling allowed states to legalize sports gambling. DraftKings and FanDuel (Flutter) dominate the US market while international operators BetMGM and Caesars also compete. The industry remains in a high-spending promotional phase as operators prioritize user acquisition before profitability.
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Frequently Asked Questions
How many US states have legalized sports betting?
As of 2025, over 35 states plus Washington DC have legalized sports betting in some form. Full national legalization remains uncertain as some large states including Texas and California have not yet passed legislation.
What is the hold rate and why does it matter?
The hold rate (or gross gaming revenue as a percent of handle) is the percentage of wagers kept by the operator after payouts. Typical US sports betting hold rates are 7-10%. Higher hold rates improve margins dramatically at scale.
When will sports betting companies become profitable?
Most pure-play operators are investing heavily in customer acquisition and promotions. The path to profitability depends on market maturity, reduction of promotional spend, and growing parlay mix which carries higher margins.
How does parlay betting differ from straight betting?
Parlays combine multiple wagers where all legs must win. They carry much higher house edges (margins) than straight bets, making them the most profitable bet type for operators and a key driver of margin improvement as the market matures.