Intrigued by sports betting, but you don’t like the playing odds—and you recognize that, over time, the house has an edge? Participation in sports betting platforms doesn’t require you to place wagers or evaluate odds. Many sports betting companies are publicly traded, which means you have an opportunity to sit on “the other side of the table” and potentially profit from the rising popularity of gambling on sports.

　　Sports betting is gambling—available for your enjoyment, not as part of an investment strategy. Investing in sportsbook companies could be a different matter. Still, before you place a bet inside a sportsbook platform—or buy shares in a publicly traded sportsbook company—learn how the leaders in sports betting compare.

　　1. DraftKingsDraftKings (DKNG) is a prominent sportsbook operator that was founded in 2012 with a focus on fantasy sports. The company since 2018 has grown rapidly, fueled by the legalization of sports betting in many states. The sportsbook and gambling company has been publicly traded on the Nasdaq since April of 2020.

　　DraftKings in 2024 supports daily fantasy sports, an online casino, and sports betting—both online and in person (where legal). Horse racing fans can bet on their favorite horses using DK HORSE, the sportsbook company’s dedicated app. DraftKings’ motto is that “life’s fun when you’re in on the action.”

　　Like many sports betting companies, DraftKings understands its responsibility to promote safe betting, which it supports in part by dedicating executive-level personnel and high-profile marketing campaigns featuring star athletes to ensure that users bet responsibly.

　　2. FanDuelOperating as a subsidiary of Flutter Entertainment (FLUT), FanDuel describes itself as “an innovative sports-tech entertainment company that is changing the way consumers engage with their favorite sports, teams, and leagues.” Founded in 2009, FanDuel enables sports betting for every major sport, including baseball, football, basketball, golf, tennis, cycling, boxing, soccer, hockey, and NASCAR racing.

　　Like DraftKings, FanDuel also supports an online casino and fantasy sports, in addition to sports betting. You can bet on sports in person with FanDuel (in states where retail sports betting is legal). FanDuel has a strong presence at casinos and horse racing tracks across the United States.

　　FanDuel also encourages responsible betting by allowing bettors to set deposit limits, wager limits, time limits, and self-exclusions to ensure that you stay within prudent financial constraints. DraftKings and FanDuel are considered sports betting “pure-plays,” although FanDuel is part of a larger, global gaming organization, whereas

　　3. ESPN BetESPN Bet is a sports betting app that’s wholly owned and operated by Penn Entertainment (PENN), a sports entertainment company that enables online gaming and sports betting. Founded in 1972, Penn Entertainment also boasts a physical presence in 43 casinos and racetracks across 20 U.S. states. ESPN Bet was formerly known as Barstool Sportsbook until Penn Entertainment purchased naming rights from ESPN in 2023.

　　Sports betting with ESPN Bet enables you to gamble on a wide range of sports—basketball, baseball, football, hockey, volleyball, lacrosse, rugby, and many more. Your bets can be straight, parlays, or teasers, each with varying complexity and risk. ESPN Bet also sponsors promotional offers and adjusts betting odds to strategically entice bettors.

　　Penn Entertainment isn’t a pure-play sports betting company, although ESPN Bet is one of its three major brands. The sports entertainment company also operates theScore, a Canada-based mobile sportsbook, casino, and sports media company.

　　4. Caesars SportsbookYou may be familiar with Caesars Entertainment (CZR), the hotel and casino company with a prominent presence in Las Vegas, but what do you know about Caesars Sportsbook, the legacy gambling enterprise’s expansion into mobile and in-person sports betting?

　　Visitors to the Caesars Sportsbook website are immediately greeted by promotional offers that entice new users to start gambling on their chosen sport. Betting on sports with Caesars Sportsbook can enable you to earn Caesars Rewards—loyalty rewards points that may be redeemed across the Caesars franchise. In other words, one of Caesars’ strengths as an investment is its ability and willingness to cross-promote sports betting with other forms of gambling.

　　Still, like other platforms, Caesars does its part to support responsible gambling by allowing participants to set deposit limits, spending limits, and time limits.

　　5. BetMGMBetMGM is a sportsbook that’s operated by another iconic Las Vegas hotel and casino company—MGM Resorts International (MGM). BetMGM is accessible via a mobile app and in many in-person locations throughout the United States.

　　Neither BetMGM nor Caesars Sportsbook are pure-play sports betting companies, but both offer additional perks for loyalty to the franchise. BetMGM players can earn MGM Rewards, which may be redeemed for sports betting incentives. MGM Rewards can also be used for hotel stays, spa visits, entertainment, dining, and other types of gaming at MGM properties.

　　MGM Resorts supports responsible gambling through its online knowledge center called GameSense. The goal of GameSense is to “keep gambling fun” by educating bettors about how gambling works, how to set money and time limits, and how to recognize if you have a gambling problem.

　　The bottom lineIf your interest in sports betting is as an investor, then the odds may be more likely to land in your favor in the long run. But that doesn’t mean that every investment in a sportsbook operator is a sure thing. You still need to research company fundamentals, pay attention to earnings, and develop your own perspective.

　　As you do your pre-investing due diligence, the first thing you might notice is that, as of 2024, DraftKings, Flutter/FanDuel, and Penn Entertainment aren’t profitable companies, due in part to massive initial investments in platform creation, regulatory compliance, and marketing incentives, such as the $250 “bonus bets” offers you may have seen in advertisements.

　　Conversely, legacy casino operators are typically profitable enterprises, but their earnings are based mostly on their casino and resort operations.

　　How you play it is up to you—your objectives, risk tolerance, and investment horizon. You can also learn something from the sports betting pros by not going “all in” on your first investment.