Churchill Downs Incorporated (CHDN): One of the Best Gambling Stocks to Buy According to Analysts
Gambling stocks include companies that own, run, or manage lawful gambling activities and events such as horse and dog racing, online gaming, bingo, and video lottery, as well as companies that provide products or services to gaming operators.
During the COVID-19 pandemic, social isolation and stay-at-home orders spurred a boom in online sports betting and gambling. Even after the COVID-19 outbreak ended, sales continued to rise. As per Vixio Regulatory Intelligence, the US online gambling industry is estimated to generate $26.8 billion in gross revenue in 2025, up from $23.4 billion in 2024, with projections pointing to more than $41 billion by 2028. While iGaming is still restricted to a few strongholds, mobile sports betting is still on the rise, with one state recently surpassing $2 billion in yearly revenue. Under normal conditions, New Jersey's online gambling revenue surpassed that of land-based casinos in October 2024, whereas states such as Pennsylvania and Michigan have iGaming earnings that exceed $200 million monthly.
However, expansion encounters opposition. Legalization efforts in New York, Maryland, and Louisiana continue, but union opposition and legislative friction persist. If just one of these states legalizes iGaming, it could start a domino effect. Another obstacle is tax increases; in 2024, several jurisdictions raised their sports betting tax rates, raising concerns that such high rates could impede innovation and competitiveness. Payment processing also remains a significant concern. Major financial services networks continue to restrict gambling transactions, intensifying the need for digital wallets and other workarounds, which authorities examine with caution. Meanwhile, sweepstakes platforms are growing in unregulated marketplaces, raising concerns as policymakers consider stronger regulations.
According to CasinoReports.com estimates, the US-regulated online sports betting market is anticipated to reach $150 billion by 2024, driven by 32 states that allow online gambling. The CEO and co-founder of Third Planet Affiliates, Adam Small, who owns and operates the iGaming news media company CasinoReports.com and the sports betting website Props.com, stated that the two large platforms dominate the business, accounting for around 75% of total wagers and revenue. Small believes there is still room for digital gambling to expand in the coming years, as Texas, California, and a more open Florida will deliver 'a large jolt' to the digital sports gambling market. Small commented the following:
'Plus, states like Minnesota and Georgia are continually flirting with legalization, and Missouri will soon join the ranks, probably in time for the 2025 football season.'
However, Nick Slade, co-founder and chief content officer at Cipher Sports Technology Group, noted that while digital-only sportsbooks dominate the market, their long-term sustainability is questionable due to hefty user acquisition expenses. Many sportsbooks struggle with profitability and rely heavily on marketing to keep clients. Casino-backed sportsbooks, on the other hand, have a competitive advantage since they may use a variety of revenue streams, such as hotels, resorts, and luxury experiences, to increase client loyalty.
Recently, the New York State Gaming Commission released its findings for mobile sports wagering from April 2024 to March 2025. According to its report, mobile sports betting in New York grew 20% year on year to $23.9 billion in FY2024- 25, producing $2.14 billion in gross gaming revenue (GGR). January dominated with a $2.48 billion handle and $247 million in GGR, closely followed by March with $2.44 billion and $161.8 million. For the first time since legalization in 2022, the monthly volume was over $1 billion. The state raised $1.11 billion for education, with $6 million for gambling treatment and $5 million for youth sports. Fines and adjustments brought in an additional $23.3 million, including a significant $17.5 million penalty.
A city skyline looking down on a busy racetrack with jockeys on horseback.
For this article, we screened for companies that are involved in gambling and formed an initial list of 20 gambling stocks. Then, we selected the 12 stocks that had the highest upside potential as of April 11, 2025. We have only included stocks in our list with an upside potential of 40% or higher. The stocks are ranked in ascending order of the upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
Analysts' Upside Potential as of April 11: 50.91%
Churchill Downs Incorporated (NASDAQ:CHDN) provides online betting, racing, and gaming entertainment. It is organized into three business segments: gaming, wagering services, and live and historical racing. The category Live and Historical Racing includes both live and historical pari-mutuel racing. The Wagering Services section includes revenue and expenses from pari-mutuel wagers placed through TwinSpires, the company's retail and online sports betting operation.
In 2024, Churchill Downs Incorporated (NASDAQ:CHDN)'s net revenues jumped by 11%, and adjusted EBITDA climbed by 13%, marking a new financial record. This accomplishment was mostly attributed to the Kentucky Derby, which achieved record-adjusted EBITDA as a consequence of increased ticket sales, sponsorships, and pari-mutuel betting. The expansion initiatives at Churchill Downs Racetrack aim to further improve the Derby experience. These projects include the renovations to the Conservatory and Sky Terrace. The firm's nearly $1.2 billion adjusted EBITDA came from HRM venues in Virginia, with plans to expand in Richmond and Henrico County.
Revenue rose by $27.3 million in the fourth quarter of 2024, or 11.07% year on year, driven by a $30.3 million surge from the opening of the Terre Haute Casino Resort, which was partially offset by a $3.0 million decline from the other wholly owned gaming locations due to regional gaming softness and increased competition. Churchill Downs Incorporated (NASDAQ:CHDN)'s strong financial position was bolstered by $688 million in free cash flow ($9.22 per share), a roughly 33% increase per share over the previous year, which makes it one of the Best Casino Stocks.
Overall, CHDN ranks 6th on our list of the 12 Best Gambling Stocks to Buy According to Analysts. While we acknowledge the potential of gambling companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CHDN but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Upstart (UPST) Slashes 7.7% on $500-Million Fundraising Program
We recently published . Upstart Holdings, Inc. (NASDAQ:UPST) is one of the best-performing stocks on Monday. Upstart Holdings dropped its share prices for a second day on Monday, shedding 7.71 percent to close at $63.46 apiece as investors soured on its plans to raise $500 million from the issuance of convertible senior notes. In a statement, Upstart Holdings, Inc. (NASDAQ:UPST) said that the notes will have a tenor of 7 years and will mature in 2032, unless earlier converted, repurchased, or redeemed. It also granted the initial buyers an option to purchase up to $75 million within a 13-day period beginning on the date the notes are first issued. The notes can be converted into cash or shares of its common stock, or they can prefer to convert into a combination of both. According to Upstart Holdings, Inc. (NASDAQ:UPST), proceeds from the offer will be used to pay the cost of the offering, as well as repurchase for cash a portion of its outstanding 0.25 percent Convertible Senior Notes due 2026. Photo by Clay Banks on Unsplash The balance will be allocated for general corporate purposes, which may include the repayment or retirement of existing debt, including the repurchase or retirement of the 2026 Notes. While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
19 minutes ago
- Yahoo
Cineverse Technology Group's Flagship Brand Matchpoint™ Announces New Deals for its Proprietary Streaming Supply Chain Platform
LOS ANGELES, Aug. 12, 2025 /PRNewswire/ -- Cineverse (Nasdaq: CNVS), a next-generation entertainment studio, has today announced that it has signed several new customers for Matchpoint™ — the industry-leading automated media supply chain platform that is radically changing the way video content is managed and delivered. This was announced today by Cineverse Technology Group's new EVP, Technology & General Manager of Matchpoint, Michele Edelman, who joined the Company this week in this newly-created role, following several months as a consultant. Among the new customers are a mix of studios and targeted streaming services that are using Matchpoint Dispatch – which helps launch and grow a streaming business via a fully-automated content management system, with asset ingest and delivery powered by trusted AI tools – and the scalable app building capabilities of Matchpoint Blueprint. Using both Blueprint and Dispatch are BeaconTV (true crime and paranormal), Elysium Media (positive reality and documentary) and Sweetspire TV (Where the South Tells its Stories). Additionally, producer and CEO Bob Yari's Magenta Light Studios (Bride Hard) is using Dispatch to distribute to digital platforms. Said Edelman, "Whether looking to quickly stand up a new streaming app or channel that is ready for scale, or seeking AI powered tools for content ingest and delivery, analytics and insights, or to improve their search and discovery capabilities, platforms and media companies continue to look to Matchpoint to bring solutions to problems that would otherwise take major investments of time and capital to address on their own. We are proud of the market adoption we are seeing as we continue to execute on a very robust deal pipeline that shows strong market validation, and look forward to announcing more deals in the near future." About Matchpoint™ Matchpoint™ is Cineverse's award-winning media supply chain platform that is radically changing the way content is managed and delivered. Matchpoint has replaced today's expensive, and labor-intensive video content processes with a fully transparent, automated workflow that significantly reduces costs, eliminates human error, and effortlessly facilitates content ingestion with delivery across multiple platforms and distribution models. About Cineverse Technology Group Cineverse develops proprietary technology that powers the future of entertainment, leveraging the Company's position as a pioneer in the video streaming industry along with the industry-leading strength of its development team in India. This team has dedicated years building and refining technology solutions that have pioneered streaming content management and distribution while leaning into advances in AI to set the company apart from the competition. This includes the creation of Matchpoint™, an award-winning media supply chain platform that is radically changing the way content is managed and delivered. The Company's cineSearch is an AI-powered search and discovery tool for film and television that makes deciding what to watch as entertaining as the entertainment itself. Additionally, the C360 programmatic audience network and ad-tech platform provides brands the opportunity to target and reach key fandoms wherever they are. About CineverseCineverse (Nasdaq: CNVS) is a next-generation entertainment studio that empowers creators and entertains fans with a wide breadth of content through the power of technology. It has developed a new blueprint for delivering entertainment experiences to passionate audiences and results for its partners with unprecedented efficiency, and distributes more than 71,000 premium films, series, and podcasts. Cineverse connects fans with bold, authentic, independent stories. Properties include the highest-grossing non-rated film in U.S. history; dozens of streaming fandom channels; a premier podcast network; top horror destination Bloody Disgusting; and more. Powering visionary storytelling with cutting-edge innovation, Cineverse's proprietary streaming tools and AI technology drive revenue and reach to redefine the next era of entertainment. For more information, visit CONTACTS For Media, The Lippin Group for Cineversecineverse@ For Investors, Julie Milsteadinvestorrelations@ View original content to download multimedia: SOURCE Cineverse Corp. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 minutes ago
- Yahoo
AAON (AAON) Tumbles 10.49% as Earnings Disappoint
We recently published . AAON, Inc. (NASDAQ:AAON) is one of the best-performing stocks on Monday. AAON tumbled by 10.49 percent on Monday to close at $72.07 apiece following a disappointing earnings performance in the second quarter of the year. In its updated report, AAON, Inc. (NASDAQ:AAON) said net income declined by 70 percent to $15.5 million from $52 million in the same period last year. Net sales slightly dipped to $311 million from $313 million year-on-year, dragged down by an 18-percent decrease in net sales from its Oklahoma segment. In the first half of the year, net income decreased by 50.9 percent to 44.78 million from $91.2 million in the same comparable period, while net sales increased by 10 percent to $633.6 million from $575.7 million year-on-year. 'Our second quarter results fell short of our expectations and do not reflect the high standards we set for ourselves as an organization,' said AAON, Inc. (NASDAQ:AAON) CEO Matt Tobolski. Pixabay/Public Domain 'The underperformance was primarily driven by poor operational execution, mainly associated with the implementation of our new ERP system at our Longview, [Texas] facility. The April go-live of the new system directly impacted production of both finished products and coils at Longview. Since Longview supplies coils to our Tulsa, [Oklahoma] facility, this also limited Tulsa's expected production ramp. We are taking immediate and targeted actions to address these issues, strengthen execution, and ensure we are better positioned to deliver consistent results in the future,' he added. While we acknowledge the potential of AAON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
