How to Make Money From the Gambling Industry Without Betting
Seven years after the Supreme Court struck down a federal sports-betting ban, gambling has become mainstream finance. Thirty-eight states, Puerto Rico, and Washington, D.C., now let residents place legal wagers, and each new jurisdiction widens the runway for industry growth. Meanwhile, U.S. commercial gaming operators posted a record-setting $71.9 billion in revenue last year, their fourth consecutive such record, according to the American Gaming Association.
For investors, the most reliable way to profit from all that action is not to wager on the next point spread, but to invest in the companies that skim a fraction of every spin, slip, or parlay. Exchange-traded funds (ETFs) and related “pick-and-shovel” businesses have turned America’s propensity for gambling into a potentially steadier cash flow for shareholders—no lucky streak required.
Key Takeaways
- U.S. commercial gaming revenue hit a new consecutive record in 2024, underscoring a structural growth trend rather than a passing fad.
- Niche ETFs like Roundhill Sports Betting & iGaming ETF (BETZ) and VanEck Gaming ETF (BJK) bundle dozens of casino, sportsbook, and iGaming stocks, spreading risk while capturing industry upside.
America’s Big Bet on Gambling
The American Gaming Association’s latest figures show total commercial gaming revenue—slots, table games, sports betting, and iGaming—surged 7.5% in 2024 to new highs, with sports betting at over $11 billion in total revenue.
Online wagering is powering that ascent: iGaming and mobile sports together generated a record $6.39 billion in revenue in the first quarter of 2025 alone, up 15% year-over-year, representing about one-third of the industry’s take. Regulators and industry insiders alike expect 2025 to continue breaking records.
But investors looking to get in on this action don’t have to take a risky gamble. ETFs provide diversified exposure and professional management in the convenience of a single security.
| Year-by-Year U.S. Sports Betting Data Since 2018 | |||
|---|---|---|---|
| Year | Wagers Placed | Gross Revenue | 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 |
Gambling ETFs
Roundhill Sports Betting and iGaming ETF (BETZ)
Launched in 2020, BETZ holds about 30 stocks, from DraftKings to back-end tech supplier Evolution AB. As of June 2025, it is up 10.7% year-to-date and 24.3% over the past 12 months. The 0.75% expense ratio is high for an ETF, but liquidity and pure-play exposure have kept assets near $75 million.
VanEck Gaming ETF (BJK)
Dating back to 2008, VanEck’s BJK brings together Las Vegas, Macau, and global equipment makers. Rising interest costs and a patchy Macau rebound have left it down 4% year-to-date, but the fund’s 32 holdings still yield 3%, and the ETF offers global diversification for a 0.62% fee.
Pacer BlueStar Digital Entertainment ETF (ODDS)
A more recent entrant, ODDS holds 44 stocks that track the BlueStar Global Online Gambling, Video Gaming, and eSports Index. It skews toward digital-first operators and back-end tech vendors, giving it lighter casino exposure than BETZ or BJK. The fund is up an impressive 15% year-to-date and 31.5% over the past year, but its very small assets under management (just $1.7 million) could make liquidity an issue.
Other Ways to Get in on the Action
- Invesco Leisure and Entertainment ETF (PEJ): Blends casino shares with cruise lines and theme parks—helpful if you want broader travel and entertainment exposure.
- “Sin” baskets: Several funds like AdvisorShares Vice ETF (VICE) add alcohol, tobacco, and firearms to gambling, smoothing revenue cycles across vice categories.
- Pure play single stocks: DraftKings Inc. (DKNG) finally posted positive adjusted earnings before interest, taxes, depreciation, and amortization in 2024 on $4.8 billion of revenue and expects margins to expand in 2025. Meanwhile, FanDuel-owner Flutter Entertainment (FLUT) projects $17.1 billion in global revenue in 2025, even after a rough NFL season.
- Own the real estate: Specialist REITs like VICI Properties (VICI) and Gaming and Leisure Properties, Inc. (GLPI) collect long-term, triple-net rent from iconic casinos such as Caesars Palace and the Venetian. Whether gamblers win or lose, landlords take their cut.
- Picks-and-shovels: Payment processor Nuvei (TSX: NVEI) saw transaction volume jump almost 30% last year as processors raced to optimize deposits and withdrawals. GeoComply, the geolocation gatekeeper for most U.S. bookmakers and a subsidiary of the Geo Group Inc. (GEO), reported a 14% rise in active accounts during Super Bowl 2025 weekend.
The Bottom Line
Gambling itself is usually a losing game for bettors, but the industry’s rake is a structural, multi-billion-dollar flow. ETFs such as BETZ and BJK let investors collect that rake instead of feeding it.
As always, check fees, liquidity, and your risk tolerance—regulatory hiccups or tax tweaks can shuffle the deck overnight. Still, if you prefer owning the casino to sweating a parlay, the smart money has already placed its chips.