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The online gambling market is booming. In fact, the market is projected to hit $95 billion in revenue this year. By 2027, it could hit $131.9 billion, as noted by Statista. Better, the number of online gamblers could rally to 233.7 million by 2027, too. All of that should create a massive opportunity for the online gambling stocks below.

Helping in this area, about 29.2 million adults in the U.S. — or 11% of the adult population — are expected to bet through online sportsbooks this year. By 2025, according to The Current, that number could jump to 37 million, or 14% of the U.S. adult population. With that kind of growth, investors may want to seriously consider betting on these top online gambling stocks.

Online Gambling Stocks: DraftKings (DKNG)

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Since the start of the year, shares of DraftKings (NASDAQ:DKNG) exploded from about $11 to a high of $34. Now at $27.23, it’s still one of the top online gambling stocks of the year. 

Helping, analysts at MoffettNathanson just upgraded DKNG to a Buy, with a $37 price target. Even better, late last year, Chief Executive Officer Jason Robins called for cost-cutting to reach profitability and investing in long-term competitive advantages, as noted by Barron’s.

“Since then, DraftKings has delivered on both fronts, with expenses coming in much better while revenues continue to outperform expectations,” they wrote. Profitability is possible with guidance for positively adjusted EBITDA in 4Q 2023 and adjusted EBITDA profitability in the next full year.

Even JPMorgan (NYSE:JPM) recently upgraded DKNG to an Overweight rating, with a $37 high-end price target.

Penn Entertainment (PENN)

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For most of the year, Penn Entertainment’s (NASDAQ:PENN) chart has been a slow-motion train wreck. But don’t write it off just yet. The PENN stock is attempting to break higher on strong earnings and the news that ESPN BET will be live before Thanksgiving weekend.

As noted by CEO and President Jay Snowden, “The planned launch of ESPN BET prior to the active Thanksgiving week sports calendar that includes the NCAA college football rivalry week and the Super Bowl rematch of the Kansas City Chiefs and the Philadelphia Eagles televised on ESPN’s Monday Night Football.”

With earnings, the company just posted Q3 EPS of $1.21, which beat by 88 cents. Revenue was down 0.3% year-over-year but was still in line with expectations. 

Roundhill Sports Betting & iGaming ETF (BETZ)

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Or, if you want to diversify with top gambling stocks, there’s always an ETF like the Roundhill Sports Betting & iGaming ETF (NYSEARCA:BETZ). Granted, the chart is a mess at the moment, but give it time. With online gambling picking up momentum, the BETZ ETF is starting to pivot from its recent low of $14.25, last trading at $15.02. From here, I’d like to see it test $16 shortly.

With an expense ratio of 0.75%, BETZ has bets on 32 sports betting and iGaming companies at the moment. Some of the top holdings include DraftKings, Flutter Entertainment (OTCMKTS:PDYPY), Churchill Downs (NASDAQ:CHDN), Entain (OTCMKTS:GMVHY) and MGM Resorts (NYSE:MGM) — to name a few.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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