As the final quarter of 2025 moves toward November, market analysts are zoning in on casino stocks that possess high volatility, unique growth catalysts, or compelling valuation stories. Unlike traditional blue-chip companies, casino equities are highly sensitive to regulatory changes, consumer sentiment, and major sporting events, offering both high risk and significant upside potential.
According to research from various financial outlets, including a recent review by MarketBeat, these five companies stand out as the top casino stocks to watch as we head into the new month.
1. DraftKings (DKNG): The Oversold Digital Giant
DraftKings remains the king of the US online sports betting (OSB) market, but its stock narrative is complex.
- The Bull Case (Growth): Analysts project significant long-term growth, with some internal models forecasting $9.5 billion in revenue by 2028. The company’s recent acquisition of Railbird Technologies to enter the regulated prediction markets (event contracts) is seen as a key move to diversify beyond traditional sports betting and casino offerings.
- The Bear Case (Risk): Despite growth, the stock has experienced recent volatility, and some reports, like those from Zacks, have even assigned a “Sell” rating, citing potential near-term underperformance and a price-to-earnings (P/E) ratio trading at a premium to some peers. Continuous regulatory and tax risks also threaten its path to sustained profitability.
- The Watch Point: DraftKings is currently noted as being “particularly oversold at this time,” making it an appealing potential bargain for investors looking past near-term volatility toward its market dominance.
2. MGM Resorts International (MGM): The Undervalued Global Brand
MGM is a powerhouse defined by its vast portfolio spanning the Las Vegas Strip, regional assets, and its growing Macau operations (MGM China).
- The Valuation Story: Despite recent price volatility influenced by general economic uncertainty, multiple Discounted Cash Flow (DCF) analyses suggest MGM is significantly undervalued. One analysis placed its estimated intrinsic value at over 60% higher than its current trading price.
- Financial Health: The company continues to generate strong Free Cash Flow (FCF), which is projected to grow substantially over the next five years, supporting shareholder value.
- Operational Focus: News reports show MGM is actively working on strategic initiatives, such as the launch of Digital Verification in Nevada for BetMGM and partnerships centered around responsible gaming, demonstrating a focus on long-term sustainability and player trust.
3. Red Rock Resorts (RRR): The Vegas Locals Specialist
Red Rock Resorts, operating largely through its Station Casinos LLC interests, is a unique play focused on the lucrative Las Vegas local market and regional assets.
- Insulated Growth: RRR benefits from its focus on the Las Vegas locals market, which is often more resilient than the Strip during tourism downturns. The company has limited new supply competition in its core operating areas.
- Development Pipeline: The successful rollout and ramp-up of new properties, including the highly-anticipated Durango Casino & Resort, provide clear EBITDA visibility into 2026 and 2027. This development pipeline is a major driver of positive analyst updates.
- Asset Quality: Analysts at JPMorgan highlighted RRR as a top regional and locals play for 2025, noting its premium, supply-constrained local assets and strong potential for capital returns.
4. PENN Entertainment (PENN): The Interactive Transformation
PENN is a fascinating case study in a major casino operator pivoting hard toward integrated sports content through its partnership with ESPN BET.
- The ESPN BET Catalyst: While the ESPN BET venture initially faced high costs, PENN is focused on reducing the platform’s operating losses and realizing the value of the exclusive media partnership.
- Regional Strength: Analysts note PENN is executing well on its regional casino portfolio, and a major $1 billion project pipeline over the next two years supports organic growth.
- Capital Return: The company has demonstrated a commitment to returning value to shareholders through substantial activities, including a recent share buyback that represented a significant percentage of its market capitalization.
5. Rush Street Interactive (RSI): The Profitable Digital Challenger
RSI, which operates the BetRivers and PlaySugarHouse brands, stands out in the crowded iGaming field for its profitability and international reach.
- Profitability Track Record: RSI reported a net income profit in Q4 2024 and provided an optimistic full-year 2025 guidance. It is one of the few pure-play digital operators to report such strong financial discipline.
- Raising Guidance: Following its Q2 results in July 2025, RSI raised its full-year 2025 revenue guidance to between $1.05 and $1.10 billion and boosted its Adjusted EBITDA expectation, reflecting confidence in its strategic focus on cost efficiency and core markets.
- Proprietary Technology: RSI utilizes a proprietary online gaming platform, allowing it greater flexibility and control over its product, a key advantage in the competitive US, Canadian, and Latin American markets.
Casino Stock Market Snapshot: October 29, 2025
MGM and DKNG Price Target Cuts: Both major operators saw price target adjustments this week. MGM’s cut from Susquehanna comes just ahead of its Q3 earnings report (scheduled for later today, Oct 29), with analysts anticipating a decline in net income. DraftKings’ cut, while maintaining a Buy rating, reflects a cautious view regarding ongoing regulatory risks and volatility in the high-growth digital segment.
DraftKings Volatility: DKNG’s share price saw significant swings throughout the week, partially due to the excitement and uncertainty surrounding its move into regulated prediction markets via the acquisition of Railbird Technologies. Its closing price of $31.14 reflects recent selling pressure.
RSI’s Volatile Growth: Rush Street Interactive (RSI) is an interesting case, as financial models show it may be 43% undervalued based on future cash flow estimates, despite its strong revenue growth and profitability. However, the stock experienced a sharp drop earlier in the month, underscoring the high volatility of smaller pure-play digital operators.
PENN Earnings Outlook: PENN stock closed the period at $17.35, and its average price target of $22.50 suggests analysts see over 26% upside potential, largely tied to the long-term success of the ESPN BET platform integration.
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Investing in casino stocks involves inherent risks, and readers should conduct their own due diligence or consult with a financial professional before making any investments.
