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Seven years after the Supreme Court docket struck down a federal sports-betting ban, playing has grow to be mainstream finance. Thirty-eight states, Puerto Rico, and Washington, D.C., now let residents place authorized wagers, and every new jurisdiction widens the runway for business development. In the meantime, U.S. industrial gaming operators posted a record-setting $71.9 billion in income final yr, their fourth consecutive such report, in keeping with the American Gaming Affiliation.
For traders, essentially the most dependable method to revenue from all that motion is to not wager on the following level unfold, however to spend money on the businesses that skim a fraction of each spin, slip, or parlay. Change-traded funds (ETFs) and associated “pick-and-shovel” companies have turned America’s propensity for playing right into a doubtlessly steadier money move for shareholders—no fortunate streak required.
Key Takeaways
- U.S. industrial gaming income hit a brand new consecutive report in 2024, underscoring a structural development pattern fairly than a passing fad.
- Area of interest ETFs like Roundhill Sports activities Betting & iGaming ETF (BETZ) and VanEck Gaming ETF (BJK) bundle dozens of on line casino, sportsbook, and iGaming shares, spreading threat whereas capturing business upside.
America’s Huge Wager on Playing
The American Gaming Affiliation’s newest figures present whole industrial gaming income—slots, desk video games, sports activities betting, and iGaming—surged 7.5% in 2024 to new highs, with sports activities betting at over $11 billion in whole income.
On-line wagering is powering that ascent: iGaming and cellular sports activities collectively generated a report $6.39 billion in income within the first quarter of 2025 alone, up 15% year-over-year, representing about one-third of the business’s take. Regulators and business insiders alike anticipate 2025 to proceed breaking information.
However traders seeking to get in on this motion do not should take a dangerous gamble. ETFs present diversified publicity {and professional} administration within the comfort of a single safety.
| 12 months-by-12 months U.S. Sports activities Betting Knowledge Since 2018 | |||
|---|---|---|---|
| 12 months | Wagers Positioned | Gross Income | Taxes Collected |
| 2018 | $6.6 billion | $441.7 million | $40.3 million |
| 2019 | $13.1 billion | $920.6 million | $95.9 million |
| 2020 | $21.5 billion | $1.55 billion | $149.7 million |
| 2021 | $57.5 billion | $4.34 billion | $436.2 million |
| 2022 | $93.7 billion | $7.59 billion | $1.17 billion |
| 2023 | $121.1 billion | $11.05 billion | $1.70 billion |
| 2024 | $149.7 billion | $13.63 billion | $2.83 billion |
Playing ETFs
Roundhill Sports activities Betting and iGaming ETF (BETZ)
Launched in 2020, BETZ holds about 30 shares, from DraftKings to back-end tech provider Evolution AB. As of June 2025, it’s up 10.7% year-to-date and 24.3% over the previous 12 months. The 0.75% expense ratio is excessive for an ETF, however liquidity and pure-play publicity have saved property close to $75 million.
VanEck Gaming ETF (BJK)
Relationship again to 2008, VanEck’s BJK brings collectively Las Vegas, Macau, and international gear makers. Rising curiosity prices and a patchy Macau rebound have left it down 4% year-to-date, however the fund’s 32 holdings nonetheless yield 3%, and the ETF affords international diversification for a 0.62% payment.
Pacer BlueStar Digital Leisure ETF (ODDS)
A more moderen entrant, ODDS holds 44 shares that observe the BlueStar International On-line Playing, Video Gaming, and eSports Index. It skews towards digital-first operators and back-end tech distributors, giving it lighter on line casino publicity than BETZ or BJK. The fund is up a formidable 15% year-to-date and 31.5% over the previous yr, however its very small property beneath administration (simply $1.7 million) may make liquidity a difficulty.
Different Methods to Get in on the Motion
- Invesco Leisure and Leisure ETF (PEJ): Blends on line casino shares with cruise strains and theme parks—useful in order for you broader journey and leisure publicity.
- “Sin” baskets: A number of funds like AdvisorShares Vice ETF (VICE) add alcohol, tobacco, and firearms to playing, smoothing income cycles throughout vice classes.
- Pure play single shares: DraftKings Inc. (DKNG) lastly posted constructive adjusted earnings earlier than curiosity, taxes, depreciation, and amortization in 2024 on $4.8 billion of income and expects margins to broaden in 2025. In the meantime, FanDuel-owner Flutter Leisure (FLUT) initiatives $17.1 billion in international income in 2025, even after a tough NFL season.
- Personal the actual property: Specialist REITs like VICI Properties (VICI) and Gaming and Leisure Properties, Inc. (GLPI) accumulate long-term, triple-net hire from iconic casinos reminiscent of Caesars Palace and the Venetian. Whether or not gamblers win or lose, landlords take their lower.
- Picks-and-shovels: Fee processor Nuvei (TSX: NVEI) noticed transaction quantity bounce nearly 30% final yr as processors raced to optimize deposits and withdrawals. GeoComply, the geolocation gatekeeper for many U.S. bookmakers and a subsidiary of the Geo Group Inc. (GEO), reported a 14% rise in energetic accounts throughout Tremendous Bowl 2025 weekend.
The Backside Line
Playing itself is often a shedding recreation for bettors, however the business’s rake is a structural, multi-billion-dollar move. ETFs reminiscent of BETZ and BJK let traders accumulate that rake as a substitute of feeding it.
As all the time, examine charges, liquidity, and your threat tolerance—regulatory hiccups or tax tweaks can shuffle the deck in a single day. Nonetheless, in case you choose proudly owning the on line casino to sweating a parlay, the sensible cash has already positioned its chips.