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Could a national referendum delay or derail Thailand’s casino ambitions?iGaming and online betting stocks are gaining significant traction in 2025, with several key players seeing double-digit growth. Despite recent regulatory pressures, analysts remain optimistic about continued momentum through the second half of the year.
According to a recent market update from Macquarie analyst Chad Beynon, the iGaming sector is ending Q2 on a strong note. Notably, DraftKings (NASDAQ: DKNG), Flutter Entertainment (NYSE: FLUT – owner of FanDuel), and Rush Street Interactive (NYSE: RSI) are outperforming expectations. These companies have benefited from strong hold rates in major U.S. sports betting states and increased betting volumes throughout the quarter.
Betting turnover is projected to grow by 15% in Q2, building on the 11% jump recorded in Q1. Despite a lack of new iGaming legislation, online casino revenues continue to beat forecasts, with Beynon projecting a robust 30% year-over-year growth in Q2.
Macquarie has maintained “outperform” ratings for DraftKings, Flutter, and Rush Street Interactive, citing their strong market positions and innovative platforms.
Despite increasing tax burdens, investor confidence remains high. For instance, Illinois recently passed a new betting tax structure that charges $0.25 per wager for the first 20 million bets and $0.50 per wager thereafter. In response, DraftKings and Flutter announced they would pass these fees onto customers starting September 1 — a move criticized by users but seemingly ignored by the stock market.
“Despite tax headwinds, we believe the 2025 outlook for online gross gaming revenue (GGR) has improved,” Beynon noted. “We now forecast 25% YoY growth in online GGR, up from our previous 20% estimate.”
The analyst emphasized that continued strength in betting volumes, hold rates, and iGaming performance are key drivers behind this upgraded forecast.
While states like New Jersey, Pennsylvania, and Michigan remain core contributors to the iGaming boom, the market potential could grow exponentially if legalization reaches major states like California and Texas. These remain the industry’s “golden geese,” with uncertain short-term prospects but massive long-term potential.
Beyond operators, data companies like Genius Sports (NYSE: GENI) and Sportradar (NASDAQ: SRAD) are also experiencing strong investor interest. Both are up more than 33% year-to-date, according to Macquarie, and are viewed as stable, lower-volatility ways to participate in the global sports betting boom.
These providers are also benefiting from the increasing popularity of in-play betting in the U.S., alongside their integration of AI-driven technologies. Their business models mirror those of software companies, though they continue to trade at more favorable earnings multiples — making them attractive from a valuation perspective.
Despite headwinds from regulation and taxation, the iGaming and online betting sector remains one of the most dynamic investment stories of 2025. With strong Q2 data, growing consumer engagement, and the rise of technology-driven providers, analysts believe the industry is positioned for continued growth well into the future.