Archaeologists tell us that gambling has been part of human society for as far back as records and evidence exist. Some of the oldest known dice were found at the Age Settlement of Skara Brae, in the Orkney Islands, and the ancient Greek and Roman predilection for betting on athletic competitions is well attested.
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Today, of course, we have all sorts of gaming, from lotteries to casino games to bookmaking on our modern sports. For better or worse, gaming and gambling are a part of our society, and that’s true in our digital age.
According to ResearchandMarkets, just the market for online sports betting is estimated at $53.78 billion this year. Sports betting is increasingly popular, and the same report estimates that the online market for it will hit $93.31 billion by 2030, for an impressive five-year CAGR of 11.65%.
That sort of market growth is bound to attract analysts and investors, and it has. Covering the leisure sector from Wells Fargo, analyst Trey Bowers says of online sports betting: “The ability to drive ROIC and shareholder returns over time is our North Star. Given the rapid growth of online betting alternatives, we are negative on traditional casino companies. We see individual opportunities in the sector, but we believe the vast majority of forward growth, net of promotional activity, will accrue to digital.”
Bowers has gone on to recommend two online sports betting stocks, shares with solid upside potential in this growing market. According to the TipRanks database, Wall Street’s consensus also sees two of these choices as Strong Buys. Let’s take a closer look and see why investors should pay attention here.
Flutter Entertainment (FLUT)
The first stock on our list of Wells Fargo picks is Flutter Entertainment, a holding company that owns such popular brands as Betfair, FanDuel, PokerStars, and SportsBet – all big names in the world of online betting. Flutter was founded in 2016, and in less than 10 years has built itself into one of the world’s largest betting companies, with a market cap of $33.8 billion and $15.43 billion in revenue for the past four quarters.
Aside from its raw size and revenue, a single number will underscore the popularity of online betting: Flutter reported having, across all of its brands, 13.9 million average monthly players globally in 2024. That’s the number that makes Flutter the world leader in online sports betting and igaming.
Despite the success and popularity of Flutter’s businesses, the company has seen its share price drop sharply since late summer. The stock peaked in late August, and has since fallen 37%; year-to-date, the shares are down 25%. The company has faced headwinds in the form of increased investment spending, new regulations in the Indian market, and access revisions in the US due to changes in local regulations. In addition, this past season has seen a number of unfavorable results in sporting events – that is, final game scores that did not match up to the ‘books’ predictions. In that circumstance, the house doesn’t always win the bet. The game results, particularly from the NFL, constituted a period of bad luck for the FanDuel brand.
Nevertheless, in its 3Q25 financial release, Flutter beat the estimates. The company reported revenue of $3.79 billion, up almost 17% year-over-year, and ahead of the forecast by $10 million. At the bottom line, adj. EPS of $1.64 beat analyst expectations by $1.05. Additionally, one of the company’s strongest assets is its deep pockets. As of this past September 30, Flutter had $1.73 billion in cash and other liquid assets available.
When we turn to Trey Bowers and the Wells Fargo take on Flutter Entertainment, we find the analyst upbeat for the long term, citing the company’s strong position in the online betting sector and its ability to generate cash. Bowers writes, “A best-in-class digital OSB/ iGaming operator, FLUT provides exposure to a high-quality management team, high-growth US digital markets, diverse Int’l mkts, and FCF generation. Sentiment has shifted negatively on the U.S. OSB markets given tax changes, prediction market competition, and event outcomes, but we would expect FLUT to overcome near-term hurdles and think the stock is undervalued at current levels.”
Going from this, Bowers rates FLUT shares as Overweight (i.e., Buy) and sets a $272 price target that indicates a potential upside of 41% in the coming year.
Flutter Entertainment’s Strong Buy consensus rating is based on 24 recent analyst reviews, including 21 Buys and 3 Holds. The stock is currently priced at $193.31, and its $311.43 average target price implies a robust one-year gain of 61%. (See FLUT stock forecast)
Sportradar Group (SRAD)
Next up is the Swiss-based Sportradar, a sports tech company that is dedicated to creating new immersive experiences for both fans and bettors. Sportradar, which has been in the business since 2001, provides a wide range of tech services for teams, leagues, betting concerns, and even the media, covering more than a million sporting events every year.
The company builds its database through partnerships with some of the best-known names in sports and sports betting. These include the NBA, NASCAR, Major League Baseball, Euroleague Basketball, the PGA Tour, the NHL, FanDuel, Draft Kings, ESPN – it’s a long list, as most every sports-related business requires up-to-date data on the game results, league standings, player statistics, and betting odds and futures.
For the sports betting industry, Sportradar provides an invaluable resource. The company makes available, in real time, the latest data on all kinds of sports. This makes the vital foundation that the betting platforms need to develop games and fantasy leagues to keep fans engaged – and betting. Sportradar complements its data service with real-time updates from its sports portfolio. In short, this company has married high-tech data services to major league sports, providing the necessary knowledge base to support the online sports betting industry.
In addition to its data services, Sportradar also offers betting industry customer platforms for sports betting and igaming. These are flexible platforms designed to let customers choose anything from a full turnkey solution to individual sportsbook modules. The company’s platforms cover such areas as sports betting, online lotteries and casino gaming, and comprehensive igaming options – and all of this can be customized for local relevance.
Looking at the company’s last set of quarterly results, from 3Q25, revenue, at 292 million euros, was up 14.5% vs. the year-ago period. The company’s Q3 profit, at 22 million euros, represented 7.7% of the total revenues, and free cash flow in the quarter came to 65 million euros.
We’ll check in again with analyst Bowers, who paints an upbeat picture of Sportradar for Wells Fargo. Bowers says of the company and its prospects, “Our bullish outlook for continued growth in US OSB should benefit SRAD long-term, given increasing revenue mix from the US, improving live betting mix where SRAD’s take rate improves, and the ability to capitalize on new betting types (i.e. Prediction Markets). In addition, growth dynamics in non-US markets remain robust, which should enable SRAD to maintain its solid growth profile.”
These comments support the analyst’s Overweight (i.e., Buy) rating, while his $30 price target implies an upside potential of 38.5% on the one-year horizon.
Sportradar’s Strong Buy consensus rating is based on 13 recent analyst reviews that feature a lopsided split of 12 Buys to 1 Hold. The stock is trading for $21.65 on Wall Street, and its $31.92 average price target suggests that it will gain 47.5% in the months ahead. (See SRAD stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.