Strong growth in iGaming cements industry’s presence on Forbes’ The Global 2000 list this year

Dig Deeper

The Backstory

Public markets start to treat online gambling as core leisure

The iGaming sector’s broader showing on Forbes’ Global 2000 list reflects a shift that has been building for several years: online gambling is no longer a peripheral growth bet attached to casinos, lotteries or media brands. It has become a material earnings driver for some of the largest leisure companies in the world, even as profitability remains uneven and regulatory costs rise.

Flutter Entertainment’s position as the highest-ranked iGaming-linked company on the list is tied closely to FanDuel’s scale in the U.S. and PokerStars’ international reach. MGM Resorts, Caesars Entertainment, Aristocrat Leisure and Boyd Gaming also illustrate the different ways online wagering now runs through public-company valuations, from direct sportsbook and iCasino operations to business-to-business content and technology. Their inclusion comes as investors weigh rapid revenue expansion against tax increases, promotional discipline and intensifying competition in mature states.

That tension has shaped recent coverage across the sector. Analysts have pointed to stronger gross gaming revenue, particularly in iGaming, while warning that sports betting handle growth is slowing and governments are seeking a larger share of operators’ economics. The Forbes rankings therefore land at a moment when market recognition is rising, but the industry is being asked to prove it can turn scale into durable cash flow.

Revenue growth is moving beyond the launch phase

State-level results show why large operators have been able to sustain investor attention. In newer sports betting markets, early adoption has delivered sizable handle and tax receipts. North Carolina, which launched mobile sports wagering in March 2024, generated more than US$6.6 billion in wagers and US$713.8 million in revenue during its first year, according to the state lottery commission. The market’s first-year performance, detailed in a report on North Carolina’s first year of online sports betting, also produced US$128 million in tax revenue at an 18% rate.

That experience shows the causality that has attracted operators and states alike. Legalization creates a regulated channel for existing demand, operators deploy national brands and technology platforms, and governments receive a recurring tax stream. It also explains why large public companies place strategic value on each incremental state approval, even when launch costs can depress margins in the short term.

More mature markets are producing a different lesson. Kansas’ February results showed total sportsbook revenue rising to US$23.9 million from US$3 million a year earlier, despite a more modest increase in settled wagers. DraftKings and FanDuel led the market, reinforcing the advantages held by operators with national databases, pricing capabilities and marketing scale. The jump in Kansas online sportsbook revenue underscored that operator profitability can improve even when handle growth is not explosive, particularly when hold rates normalize in their favor.

iCasino is becoming the stronger earnings story

Sports betting has received much of the political and media attention because of its connection to major leagues and live events. But iCasino has increasingly become the more attractive business line for public companies. Online casino products tend to generate steadier engagement, higher margins and less seasonality than sports wagering. That matters for companies seeking to justify large market values and long-term earnings multiples.

Michigan remains one of the clearest examples. In September, the state’s iCasinos generated US$243.4 million in revenue, up 33.5% from a year earlier. FanDuel led the market with US$65.6 million, while BetMGM reported US$61.9 million. The state’s results, covered in Michigan iCasino revenue growth, also showed rapid gains from Fanatics, BetRivers and Hollywood, even as smaller brands lost ground.

Those numbers help explain why iGaming-focused growth has become a recurring theme in analyst notes. When a market is fully open to online casino, operators can cross-sell sportsbook customers into higher-frequency products. That dynamic can improve customer lifetime value and reduce reliance on expensive promotions tied to sports seasons or new-state launches.

For companies on the Forbes list, the distinction is important. MGM’s BetMGM joint venture, Caesars Digital and Flutter’s FanDuel all compete in both verticals, but iCasino can play a larger role in sustaining margins as sports betting matures. Aristocrat’s inclusion also points to the importance of suppliers. As operators seek new game content and platform capabilities, B2B providers can participate in market growth without bearing the same level of customer acquisition cost.

Analysts see upside, but not without pressure

Investor enthusiasm has not been blind to risk. Macquarie analyst Chad Beynon wrote in June that iGaming stocks were rising three times as fast as the S&P 500 over a four-week period, reflecting improving sentiment despite regulatory headwinds. His note, summarized in Macquarie’s view that iGaming would outperform, projected 25% online gross gaming revenue growth in 2025.

The argument rested on several factors: elevated sportsbook hold, faster handle growth in the second quarter and a roughly 30% acceleration in iGaming activity. Higher structural hold and more in-play betting were expected to lift market sizes above earlier expectations. DraftKings, Flutter, Rush Street Interactive, BetMGM and Caesars were among the companies positioned to benefit.

At the same time, the analyst highlighted the political risk embedded in the model. Illinois introduced a handle tax, Maryland and Louisiana increased sports betting tax rates and New Jersey was expected to raise its rate. These moves show how quickly states can revisit the original bargain once markets mature. As operators become more profitable and tax receipts become more visible, lawmakers may seek a greater share of revenue.

That creates a central challenge for public companies. The same scale that earns market recognition can make operators more exposed to policy changes. Companies must absorb higher taxes while maintaining product investment, responsible gambling controls, marketing discipline and shareholder expectations.

Flutter’s U.S. position sets the benchmark

Flutter’s prominence on the Forbes list is not incidental. FanDuel has become a benchmark for U.S. online sports betting performance, while Flutter’s broader international portfolio gives investors exposure beyond a single regulatory environment. Jefferies analyst James Wheatcroft placed a Wall Street-high US$380 price target on Flutter in July, citing a multiyear U.S. opportunity and the company’s diversified global business. His assessment of Flutter as a strong buy emphasized rising population penetration and potential new state legalizations.

Still, the note also captured the industry’s transition. U.S. handle growth slowed from 30% across the first three quarters of 2024 to 13% in the first quarter of 2025. Flutter’s own handle growth slowed more sharply. Wheatcroft attributed the deceleration partly to fewer new state launches, lower promotional intensity, sports calendar effects and shifts toward higher-margin but lower-wager products such as parlays and in-game bets.

That shift is not necessarily negative. Lower promotional spending can support profitability, and higher-margin products can offset softer handle growth. But it changes how investors should judge the sector. The next phase will be less about headline wagering totals and more about net revenue, retention, product mix and operating leverage.

The stakes move from access to execution

The Forbes rankings capture an industry that has achieved institutional scale but still faces a demanding test. Early growth was driven by legalization, aggressive customer acquisition and the migration of bettors from offshore or retail channels to regulated online platforms. The next stage will depend on whether operators can expand earnings while regulators, competitors and consumers all become more sophisticated.

For casino groups such as MGM and Caesars, digital growth can diversify businesses historically tied to destination resorts and regional casinos. For Flutter, the U.S. opportunity can reinforce a global portfolio. For suppliers such as Aristocrat, the rise of online casino can support long-term content and technology demand. For smaller or less efficient operators, the same market conditions may expose weaknesses, especially as promotional spending becomes more rational and tax rates rise.

The industry’s presence on a global corporate ranking is therefore more than a symbolic milestone. It shows that iGaming has become large enough to influence public-market valuations across leisure, entertainment and technology. The unresolved question is whether that recognition reflects the start of a more profitable era or simply a higher bar for companies whose growth story is now being measured against global peers.