The gambling industry is seeing a historic transformation. What used to be a business centered on resort destinations, gaming floors and slot machines has expanded rapidly into mobile betting, digital sportsbooks and interactive gaming platforms. This shift has redefined how consumers engage with gambling, making it more accessible, data-driven, and integrated into everyday digital life.
The surge in online gambling, driven by mobile adoption, regulatory changes and shifting consumer behavior, now shapes how online casino operators grow, how they compete and how investors should evaluate the industry.
For publicly traded casino stocks, this shift isn’t just creating a new revenue stream. It’s reshaping valuations, revenue mixes and long-term strategy across the sector.
Online gambling is surging worldwide
As impressive as the industry’s digital transformation looks from a high level, the real story becomes even clearer when you look at the numbers.
Europe’s digital growth
Europe is one of the clearest examples of the digital shift:
- The European gambling market reached €123.4 billion in gross gaming revenue in 2024, a 5% increase from 2023. (EGBA)
- €47.9 billion came from online gambling, making 39% of Europe’s total gambling revenue digital, up from 37% in 2023. (EGBA)
- Online casino games generated €21.5 billion, leading all online categories.
- Mobile now represents 58% of online gambling revenue and is projected to hit 67% by 2029. (SBC News)
Europe shows what a mature digital gambling market looks like: highly regulated, mobile-first and increasingly shifting revenue away from traditional retail casinos.
Online gambling in the United States
The U.S. remains the fastest-growing online gambling market in the world:
- U.S. commercial gaming revenue hit $71.9 billion in 2024, a record high. (Yogonet)
- iGaming (online casino) revenue grew 28.7% to $8.41 billion across states where it is legal. (AGA)
- Legal U.S. sports betting produced $13.71 billion in 2024 revenue, with bettors wagering $147.91 billion, 95% of it online. (Responsible Gambling Council)
Legalization, marketing, and consumer comfort with mobile platforms are driving adoption at a pace few industries can match.
Why this surge matters for publicly traded casino stocks
This explosive growth isn’t just changing how people gamble; it’s reshaping the financial and strategic landscape for the companies behind the world’s biggest casinos. As online revenue becomes a larger share of the pie, the entire investment outlook for casino stocks is evolving.
Digital revenue mix is changing company profiles: The rise of online sports betting and iGaming is changing revenue models. Physical casinos require heavy capital investment, like resort construction, hotel operations, labor and maintenance. By contrast online platforms are scalable, require less capex and often achieve higher long-term margins once marketing costs stabilize.
As a result, the companies that can shift a larger share of revenue toward digital channels are generally rewarded with higher valuations.
Investors prefer scalable, asset-light growth: Digital-first operators like DraftKings and Flutter have demonstrated how online scalability can drive revenue growth without the burden of physical expansion. Traditional operators like MGM, Caesars, Wynn, Penn are racing to build or acquire competitive digital platforms to complement their physical portfolios.
For investors, this means:
- Companies that execute well digitally may receive valuation upgrades.
- Those that lag risk losing market share and relevance.
Loyalty, cross-sell and data create competitive advantages: Casino operators with strong loyalty programs have a built-in advantage. They can cross-sell brick-and-mortar customers into digital platforms, reducing acquisition costs and increasing customer lifetime value.
Winners, losers and market positioning
Among publicly traded casino operators, the clear winners in the online gambling surge are those that invested early in digital platforms and mobile betting technology. Companies with established online casino offerings, strong sportsbook partnerships and robust user acquisition strategies are capturing the largest share of new digital revenue. These operators benefit from diversified earnings streams, higher-margin online products and the ability to scale quickly without the physical limitations of brick-and-mortar properties. As a result, they’re outperforming peers that rely heavily on in-person gaming and have been slower to modernize.
What investors should watch
Here are the most important metrics that signal long-term success:
1. Online revenue % of total
When this passes 25-40%, valuation multiples often expand.
2. YoY growth in iGaming and online sports betting
The U.S. iGaming growth of 28.7% in 2024 is a benchmark for strong momentum.
3. Customer acquisition cost (CAC)
Excessive promotional spending can turn fast-growing companies into unprofitable ones. Investors want to see CAC stabilize.
4. Monthly active users & retention
Digital operators depend on sticky, recurring revenue.
5. Regulatory footprint
Companies operating across more states or countries enjoy lower regulatory risk.
Risks and Headwinds
Even with massive growth, investors must consider:
- Regulatory uncertainty: tax increases, advertising bans, licensing restrictions.
- Marketing wars: acquisition cost spikes in competitive markets.
- Tech & compliance costs: cybersecurity, fraud prevention, identity verification.
- Economic pressure: downturns can reduce discretionary spending.
- User saturation: mature markets require strong retention strategies.
Online gambling isn’t just a trend; it’s changing the industry. Companies that embrace digital platforms and mobile wagering are best positioned to grow, while investors should watch for scalable online revenue and strong user engagement. The shift toward online casino and sports betting will continue to define the future of casino stocks.
