Key Takeaways
- Investor focus intensifies on five gaming sector stocks in early 2026: DraftKings, MGM, PENN, Caesars, and Las Vegas Sands
- Wall Street analysts project approximately 30% growth potential for DraftKings after entering prediction markets
- MGM Resorts achieved all-time high revenue of $17.2 billion throughout 2024, representing 7% annual growth
- PENN Entertainment dissolved its ESPN Bet collaboration in November 2025 due to underwhelming performance, pivoting to theScore Bet branding
- Las Vegas Sands discontinued its online gaming division in October 2025, concentrating resources on Asian casino operations
Investor interest in five specific casino stocks has intensified entering 2026, according to market trading data and Wall Street analyst reports.
DraftKings entered public markets via SPAC merger in 2020. The company stands alone as the sole pure-play digital gambling operator among prominent casino stocks, controlling approximately 34% of U.S. online sports wagering. FanDuel maintains the top position at 44%.
The company’s revenue surged 30% throughout 2024, reaching $4.77 billion, though profitability remains elusive. Operating losses contracted to $609 million. By Q3 2025, DraftKings counted 3.6 million monthly unique paying customers.
Wall Street observers identify approximately 30% upward potential following the company’s entry into prediction markets. However, user acquisition stagnated in the latest reporting period.
MGM controls several iconic Las Vegas Strip destinations, notably the Bellagio and MGM Grand. The operator also maintains 56% ownership in two Macau gaming properties.
MGM Resorts International, MGM
MGM Resorts delivered unprecedented revenue of $17.2 billion in 2024, marking 7% annual expansion. Its Macau operations surged 28% to $4 billion as COVID-era restrictions lifted.
BetMGM Reaches Profitability Milestone
The company’s collaborative digital venture, BetMGM, has achieved EBITDA profitability. BetMGM is projected to generate $2.75 billion in revenue with $200 million EBITDA throughout 2025.
PENN Entertainment manages 44 gaming facilities spanning 20 states. The operator purchased Barstool Sports before transforming its sportsbook into ESPN Bet through a $2 billion arrangement.
PENN terminated the ESPN Bet agreement prematurely in November 2025. Management cited disappointing outcomes as the catalyst. The company now transitions its digital sports wagering platform to theScore Bet branding.
Revenue experienced modest increases in recent quarters, though PENN continues reporting GAAP losses as digital platform investments persist.
Caesars emerged as America’s largest casino operator following Eldorado Resorts’ 2020 acquisition. The merged entity operates 54 facilities, with eight positioned on the Las Vegas Strip.
Revenue contracted modestly in 2024, declining from $11.4 billion to $11.2 billion amid softness in Las Vegas and regional markets.
Las Vegas Sands Abandons Digital Strategy
Caesars deployed $4 billion acquiring British digital gaming operator William Hill in April 2021. Its online division demonstrated expansion and generated strong earnings in recent quarters.
Las Vegas Sands maintains exclusive focus on Asian markets. The company runs five Macau casinos plus Marina Bay Sands in Singapore. It divested all Las Vegas holdings in March 2021 for $6.25 billion.
Throughout 2024, Las Vegas Sands generated $11.3 billion in revenue, representing 9% growth from 2023, alongside $2.4 billion in operating income.
In October 2025, Las Vegas Sands eliminated its digital gaming division, redirecting capital toward flagship Macau and Singapore casino operations.
