19 Best Gambling Stocks to Buy Now
In this article, we will take a detailed look at the 19 Best Gambling Stocks to Buy Now. For a quick overview of such stocks, read our article 5 Best Gambling Stocks to Buy Now.
https://www.americangaming.org/wp-content/uploads/2023/10/Gaming-Industry-Outlook-Fall-2023.pdf https://www.bloomberg.com/news/articles/2024-01-01/macau-s-casino-hub-revival-holds-up-in-china-s-economic-slowdown https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwij1a_dpaSEAxWC9gIHHfXnA4YQFnoECCgQAQ&url=https%3A%2F%2Fwww.cnbc.com%2F2024%2F01%2F28%2Fonline-sports-betting-stocks-are-primed-for-a-big-2024-as-fans-ready-for-the-super-bowl.html&usg=AOvVaw1HgTJJkk_OzUqB2N7LbuDx&opi=89978449
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19. GAN Limited Ordinary Shares (NASDAQ:GAN)
Number of Hedge Fund Investors: 6
GAN Limited Ordinary Shares (NASDAQ:GAN) is an interesting penny stock that is gaining a lot of attention especially from retail investors who are interesting in the gambling and casino industry. GAN Limited Ordinary Shares (NASDAQ:GAN) offers enterprise software solutions for casino and entertainment industry.
Insider Monkey's database of hedge funds shows that six hedge funds had stakes in GAN Limited Ordinary Shares (NASDAQ:GAN) as of the end of the third quarter.
18. Golden Entertainment, Inc. (NASDAQ:GDEN)
Number of Hedge Fund Investors: 13
Golden Entertainment, Inc. (NASDAQ:GDEN) ranks x in our list of the best gambling stocks to invest in 2024 according to hedge funds. Insider Monkey's database shows that 13 hedge funds had stakes in the taverns and distributed gaming platform company Golden Entertainment, Inc. (NASDAQ:GDEN).
17. Bally's Corporation (NYSE:BALY)
Number of Hedge Fund Investors: 14
Bally's Corporation (NYSE:BALY) ranks x in our list of the best gambling stocks to buy according to hedge fund investors. The gaming, betting, and interactive entertainment shares were spotted in 14 hedge fund portfolios as of the end of the third quarter of 2023.
In November, Bally's Corporation's (NYSE:BALY) director Jeffrey Rollins bought of 5,000 shares of Bally's Corporation (NYSE:BALY) for a transaction value of $50,000.
16. Red Rock Resorts Inc (NASDAQ:RRR)
Number of Hedge Fund Investors: 17
Red Rock Resorts Inc (NASDAQ:RRR) has been gaining attention from analysts ahead of its earnings report and a majority of Wall Street pundits believe Red Rock Resorts Inc (NASDAQ:RRR) will beat Q4'2023 estimates. Deutsche Bank analyst Carlo Santarelli and his team believes strengths in the industry helped Red Rock Resorts Inc (NASDAQ:RRR) in the last quarter of 2023. Santarelli reiterated a Buy rating on the stock and also increased his price target to $62 from $54.
Out of the 910 funds tracked by Insider Monkey, 17 hedge funds had stakes in Red Rock Resorts Inc (NASDAQ:RRR). The biggest stake in Red Rock Resorts Inc (NASDAQ:RRR) is owned by Ric Dillon's Diamond Hill Capital which owns a $198 million stake in Red Rock Resorts Inc (NASDAQ:RRR).
Diamond Hill Small Cap Fund made the following comment about Red Rock Resorts, Inc. (NASDAQ:RRR) in its Q3 2023 investor letter:
“Our bottom contributors in Q3 included Red Rock Resorts, Inc. (NASDAQ:RRR) and Enovis Corporation. Red Rock Resorts, a casino operator controlling over half the Las Vegas locals market, traded off during the quarter as property margins slipped and Las Vegas revenues overall declined. Shares have also been pressured as investors weigh the likelihood of a near-term recession and as labor union strikes in Las Vegas have broadly pressured the industry. However, we maintain our conviction in Red Rock Resorts and consider its valuation even more compelling at its current level.”
15. Light & Wonder, Inc. (NASDAQ:LNW)
Number of Hedge Fund Investors: 17
Previously known as Scientific Games, Light & Wonder, Inc. (NASDAQ:LNW) is a notable name in the gambling industry as Light & Wonder, Inc. (NASDAQ:LNW) sells gaming machines, lottery terminals, conversion game kits, chips, bingo cards, among other related products.
As of the end of the third quarter of 2023, 17 hedge funds had stakes in Light & Wonder, Inc. (NASDAQ:LNW).
14. Monarch Casino & Resort, Inc. (NASDAQ:MCRI)
Number of Hedge Fund Investors: 18
Casino operator Monarch Casino & Resort, Inc. (NASDAQ:MCRI) ranks x in our list of the best gambling stocks to buy according to smart money managers. Insider Monkey's database of 910 hedge funds shows that 18 hedge funds had stakes in Monarch Casino & Resort, Inc. (NASDAQ:MCRI) as of the end of the third quarter of 2023. The most notable hedge fund stakeholder of Monarch Casino & Resort, Inc. (NASDAQ:MCRI) during this period was Israel Englander's Millennium Management that had a $16.2 million stake in Monarch Casino & Resort, Inc. (NASDAQ:MCRI).
Monarch Casino & Resort, Inc. (NASDAQ:MCRI) is also among the casino stocks that pay dividends.
13. Churchill Downs Incorporated (NASDAQ:CHDN)
Number of Hedge Fund Investors: 24
Racetracks, casino and online betting company Churchill Downs Incorporated (NASDAQ:CHDN) shares are down by about 8% so far in 2024. In December 2023, Churchill Downs Incorporated (NASDAQ:CHDN) said it would buy back one million shares at $123.75 per share in a private transaction. As of February the stock was trading at $121.86.
Of the 910 hedge funds tracked by Insider Monkey, 24 hedge funds were long Churchill Downs Incorporated (NASDAQ:CHDN) as of the end of the third quarter.
The London Company SMID Cap Strategy made the following comment about Churchill Downs Incorporated (NASDAQ:CHDN) in its Q3 2023 investor letter:
“Churchill Downs Incorporated (NASDAQ:CHDN) – CHDN underperformed as 2Q recent results were a bit weaker than expected reflecting softness in the casino business and partially due to a temporary issue in the live racing business. We are not overly concerned about the issues that have pressured the stock, and we continue to have a very favorable view of the long-term outlook for CHDN. In our view, CHDN has a thoughtful and long-term oriented management team running a portfolio of highly cash-generative assets, with a very attractive set of investment opportunities.”
12. Everi Holdings Inc (NYSE:EVRI)
Number of Hedge Fund Investors: 26
Everi Holdings Inc (NYSE:EVRI) makes slot machines and financial equipment for casinos.
As of the end of the third quarter of 2023, 26 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Everi Holdings Inc (NYSE:EVRI). The biggest stake in Everi Holdings Inc (NYSE:EVRI) is owned by Jeffrey Jacobowitz's Simcoe Capital Management which owns a $52 million stake in Everi Holdings Inc (NYSE:EVRI).
11. Genius Sports Limited (NYSE:GENI)
Number of Hedge Fund Investors: 28
Genius Sports Limited (NYSE:GENI) offers tech solutions and services for the sports, sports betting, and sports media industries. The stock has gained about 30% over the past one month. In December, Macquarie started covering the stock with an Outperform rating.
Insider Monkey's database of 910 hedge funds shows that 28 hedge funds had stakes in Genius Sports Limited (NYSE:GENI). The biggest stake in Genius Sports Limited (NYSE:GENI) is owned by Catherine D. Wood's ARK Investment Management which owns a $34 million stake in Genius Sports Limited (NYSE:GENI).
10. PENN Entertainment, Inc. (NASDAQ:PENN)
Number of Hedge Fund Investors: 28
PENN Entertainment, Inc. (NASDAQ:PENN) came in the limelight in December 2023 after it was reported that HG Vora Capital, which had a $333 million stake in PENN Entertainment, Inc. (NASDAQ:PENN), was seeking board seats. A Wall Street Journal report said PENN Entertainment, Inc. (NASDAQ:PENN) intends to begin a proxy fight if it fails to get board seats. HG Vora reportedly believes PENN Entertainment, Inc. (NASDAQ:PENN) is deeply undervalued and wants changes in board structure.
As of the end of the third quarter of 2023 28 hedge funds out of the 910 funds had stakes in PENN Entertainment, Inc. (NASDAQ:PENN).
Baron Growth Fund made the following comment about PENN Entertainment, Inc. (NASDAQ:PENN) in its Q2 2023 investor letter:
“PENN Entertainment, Inc. (NASDAQ:PENN) operates regional casinos across the U.S. Shares fell on investor concerns that a potential recession would negatively impact visitor spending. While an increase in competition and economic deterioration in certain regional markets is pressuring results, we believe PENN will successfully navigate current headwinds given its strong balance sheet and cash flow profile. We believe PENN will continue generating strong cash flow to invest in its digital gaming opportunity and return cash to shareholders through buybacks. PENN’s stock, which fell to an historical trough EBITDA multiple during the quarter, should revert to its historical average multiple as conditions improve and its digital gaming operation reaches breakeven revenue and cash flow in 2024.”
9. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
Number of Hedge Fund Investors: 28
Headquartered in Hong Kong, Melco Resorts & Entertainment Limited (NASDAQ:MLCO) operators resorts and gaming facilities.
As of the end of the third quarter of 2023, 28 hedge funds had stakes in Melco Resorts & Entertainment Limited (NASDAQ:MLCO).
8. International Game Technology PLC (NYSE:IGT)
Number of Hedge Fund Investors: 29
UK-based International Game Technology PLC (NYSE:IGT) sells slot machines and other casino-related tech equipment. As of the end of the third quarter of 2023, 29 hedge funds had stakes in International Game Technology PLC (NYSE:IGT). The stock has a dividend yield of 3% as of February 3
7. Boyd Gaming Corporation (NYSE:BYD)
Number of Hedge Fund Investors: 30
Boyd Gaming Corporation (NYSE:BYD) ranks x in our list of the best gambling stocks to buy now. As of the end of the third quarter of 2023, 30 hedge funds tracked by Insider Monkey had stakes in Boyd Gaming Corporation (NYSE:BYD).
During its Q3 earnings call Boyd Gaming Corporation (NYSE:BYD) talked about its dividend and shareholder returns:
"Additionally, we paid a quarterly dividend of $0.16 per share on October 15. Between share repurchases and dividends, we have returned more than $1 billion to shareholders since resuming our capital return program two years ago. And by year-end, we will have returned over $1 billion through our share repurchase program alone. As of September 30, we have approximately $426 million remaining under our current repurchase authorization. Thanks to our substantial free cash flow, we have balanced our capital return program and our property reinvestments while maintaining a strong balance sheet. Our total leverage at the end of the quarter was 2.3x, while lease adjusted leverage was 2.7x.
We have no near-term maturities and ample borrowing capacity under our credit agreement. Our balance sheet is the strongest in the company’s history. Providing us the confidence in our ability to reinvest in our portfolio and return capital to shareholders while pursuing opportunities to further grow our company."
Read the full earnings call transcript here.
6. VICI Properties Inc (NYSE:VCI)
Number of Hedge Fund Investors: 33
With a dividend yield of over 5%, VICI Properties Inc (NYSE:VCI) is a highly attractive stock in the gambling and entertainment space. VICI Properties Inc (NYSE:VCI) is a REIT that specializes in casino and entertainment properties.
Out of the 910 hedge funds tracked by Insider Monkey, 33 hedge funds had stakes in VICI Properties Inc (NYSE:VCI). The biggest hedge fund stakeholder of VICI Properties Inc (NYSE:VCI) during this period was Ken Griffin's Citadel Investment Group which owns a $292 million stake in VICI Properties Inc (NYSE:VCI).
Here is what Baron Real Estate Income Fund has to say about VICI Properties Inc. (NYSE:VICI) in its Q2 2023 investor letter:
“We have slightly decreased our already modest exposure to the triple net gaming REIT VICI Properties Inc. (NYSE:VICI), an owner of quality gaming, hospitality, and entertainment properties. The company pays a 6% dividend that is well covered, has a strong track record of making accretive acquisitions, and has additional opportunities for growth in the years ahead.”
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Disclosure: None. 19 Best Gambling Stocks to Buy Now is originally published on Insider Monkey.
