10 Best Online Betting for January 2026
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Market Overview & Selection Criteria
The online betting and gaming sector has shown robust growth amid expanding digital adoption and regulatory shifts, with many companies posting double-digit revenue increases. ValueSense selected these 10 top stock picks based on intrinsic value analysis, prioritizing firms where current market prices appear below calculated intrinsic values, combined with quality ratings above 5.0, positive revenue growth, and strong margins like FCF and gross margins. Methodology emphasizes undervalued stocks in gaming and tech-adjacent spaces, filtering for high ROIC where possible, low debt burdens in select cases, and 1Y returns indicating momentum or recovery potential. This watchlist targets best value stocks in online betting for diversified exposure.
Featured Stock Analysis
Stock #1: Apple Inc. (AAPL)
| Metric | Value |
|---|---|
| Market Cap | $4,031.2B |
| Quality Rating | 7.1 |
| Intrinsic Value | $93.3 |
| 1Y Return | 11.3% |
| Revenue | $416.2B |
| Free Cash Flow | $98.8B |
| Revenue Growth | 6.4% |
| FCF margin | 23.7% |
| Gross margin | 46.9% |
| ROIC | 205.1% |
| Total Debt to Equity | 10.8% |
Investment Thesis
Apple Inc. (AAPL) stands out with a massive $4,031.2B market cap, delivering steady revenue of $416.2B and exceptional $98.8B free cash flow, supported by 6.4% revenue growth. Its Quality rating of 7.1 reflects superior efficiency, with a stellar 205.1% ROIC, 46.9% gross margin, and 23.7% FCF margin, alongside a conservative 10.8% total debt to equity. At an intrinsic value of $93.3, AAPL analysis highlights its position as a tech giant with gaming ecosystem ties, offering stability in a volatile sector. The 11.3% 1Y return underscores reliable performance for value-focused portfolios.
Key Catalysts
- Exceptional ROIC at 205.1% driving capital efficiency
- Strong $98.8B FCF enabling reinvestment and dividends
- Healthy 46.9% gross margin supporting pricing power
Risk Factors
- Moderate 6.4% revenue growth may lag high-growth peers
- Large market cap limits explosive upside potential
Stock #2: Flutter Entertainment plc (FLUT)
| Metric | Value |
|---|---|
| Market Cap | $38.9B |
| Quality Rating | 5.4 |
| Intrinsic Value | $89.0 |
| 1Y Return | -14.3% |
| Revenue | $15.4B |
| Free Cash Flow | $913.0M |
| Revenue Growth | 18.0% |
| FCF margin | 5.9% |
| Gross margin | 46.1% |
| ROIC | 0.1% |
| Total Debt to Equity | 127.9% |
Investment Thesis
Flutter Entertainment plc (FLUT), with a $38.9B market cap, generates $15.4B revenue and $913.0M free cash flow, fueled by 18.0% revenue growth in the online betting space. Despite a 5.4 Quality rating, its 46.1% gross margin and 5.9% FCF margin indicate operational strength, though 0.1% ROIC and 127.9% total debt to equity warrant caution. Intrinsic value at $89.0 suggests undervaluation, positioning FLUT as a key online betting stock pick with recovery potential after a -14.3% 1Y return.
Key Catalysts
- Robust 18.0% revenue growth from market expansion
- Solid 46.1% gross margin in competitive gaming
- Scale advantages in global betting operations
Risk Factors
- Low 0.1% ROIC signals capital inefficiency
- High 127.9% debt to equity increases leverage risk
Stock #3: DraftKings Inc. (DKNG)
| Metric | Value |
|---|---|
| Market Cap | $17.6B |
| Quality Rating | 5.0 |
| Intrinsic Value | $72.3 |
| 1Y Return | -1.7% |
| Revenue | $5,458.1M |
| Free Cash Flow | $654.1M |
| Revenue Growth | 18.5% |
| FCF margin | 12.0% |
| Gross margin | 39.2% |
| ROIC | (10.9%) |
| Total Debt to Equity | 181.5% |
Investment Thesis
DraftKings Inc. (DKNG) features a $17.6B market cap, $5,458.1M revenue, and $654.1M free cash flow, with impressive 18.5% revenue growth and 12.0% FCF margin. Its 5.0 Quality rating pairs with a 39.2% gross margin, but 10.9% ROIC and 181.5% total debt to equity highlight challenges. At $72.3 intrinsic value, this DKNG analysis reveals growth in sports betting amid a flat -1.7% 1Y return, appealing to investors eyeing sector turnaround.
Key Catalysts
- Strong 18.5% revenue growth in U.S. markets
- Improving 12.0% FCF margin toward profitability
- Expanding user base in daily fantasy and betting
Risk Factors
- Negative 10.9% ROIC reflects ongoing losses
- Elevated 181.5% debt to equity amid competition
Stock #4: Churchill Downs Incorporated (CHDN)
| Metric | Value |
|---|---|
| Market Cap | $7,788.5M |
| Quality Rating | 7.1 |
| Intrinsic Value | $80.3 |
| 1Y Return | -14.9% |
| Revenue | $2,884.2M |
| Free Cash Flow | $675.0M |
| Revenue Growth | 8.0% |
| FCF margin | 23.4% |
| Gross margin | 48.9% |
| ROIC | 11.4% |
| Total Debt to Equity | 473.2% |
Investment Thesis
Churchill Downs Incorporated (CHDN) boasts a $7,788.5M market cap, $2,884.2M revenue, and $675.0M free cash flow, driven by 8.0% revenue growth and excellent 23.4% FCF margin. A 7.1 Quality rating, 48.9% gross margin, and 11.4% ROIC shine, despite 473.2% total debt to equity. Intrinsic value of $80.3 positions it as an undervalued gaming stock, even with -14.9% 1Y return, for racing and betting exposure.
Key Catalysts
- High 23.4% FCF margin and 48.9% gross margin
- Solid 11.4% ROIC for mature operations
- Diversified revenue from events and online
Risk Factors
- Very high 473.2% debt to equity poses solvency risks
- Modest 8.0% revenue growth in saturated markets
Stock #5: Super Group (SGHC) Limited (SGHC)
| Metric | Value |
|---|---|
| Market Cap | $5,932.2M |
| Quality Rating | 6.8 |
| Intrinsic Value | $8.9 |
| 1Y Return | 86.7% |
| Revenue | €2,070.5M |
| Free Cash Flow | €0.0 |
| Revenue Growth | 33.0% |
| FCF margin | 0.0% |
| Gross margin | 50.5% |
| ROIC | 88.6% |
| Total Debt to Equity | 9.7% |
Investment Thesis
Super Group (SGHC) Limited (SGHC) has a $5,932.2M market cap, €2,070.5M revenue, and €0.0 free cash flow, but excels with 33.0% revenue growth and 50.5% gross margin. 6.8 Quality rating, 88.6% ROIC, and low 9.7% total debt to equity are strengths, with 0.0% FCF margin noted. At $8.9 intrinsic value, SGHC analysis flags high potential after 86.7% 1Y return in online gaming.
Key Catalysts
- Explosive 33.0% revenue growth in iGaming
- Impressive 88.6% ROIC and 50.5% gross margin
- Low 9.7% debt for financial flexibility
Risk Factors
- €0.0 free cash flow indicates cash burn
- Zero FCF margin amid scaling efforts
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Stock #6: Rush Street Interactive, Inc. (RSI)
| Metric | Value |
|---|---|
| Market Cap | $5,367.6M |
| Quality Rating | 7.2 |
| Intrinsic Value | $6.5 |
| 1Y Return | 40.5% |
| Revenue | $1,063.7M |
| Free Cash Flow | $66.0M |
| Revenue Growth | 23.1% |
| FCF margin | 6.2% |
| Gross margin | 34.2% |
| ROIC | 116.5% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Rush Street Interactive, Inc. (RSI) shows $5,367.6M market cap, $1,063.7M revenue, and $66.0M free cash flow, with 23.1% revenue growth and 6.2% FCF margin. Top 7.2 Quality rating, 34.2% gross margin, 116.5% ROIC, and 0.0% total debt to equity make it standout. Intrinsic value $6.5 suggests deep value in betting tech, backed by 40.5% 1Y return.
Key Catalysts
- Excellent 116.5% ROIC and zero debt
- 23.1% revenue growth in interactive platforms
- Strong 7.2 Quality rating for execution
Risk Factors
- Smaller scale limits bargaining power
- Moderate 6.2% FCF margin needs improvement
Stock #7: Brightstar Lottery (BRSL)
| Metric | Value |
|---|---|
| Market Cap | $3,113.0M |
| Quality Rating | 6.2 |
| Intrinsic Value | $49.5 |
| 1Y Return | 7.8% |
| Revenue | $2,494.0M |
| Free Cash Flow | $89.2M |
| Revenue Growth | 8.6% |
| FCF margin | 3.6% |
| Gross margin | 43.4% |
| ROIC | 11.8% |
| Total Debt to Equity | 314.3% |
Investment Thesis
Brightstar Lottery (BRSL) offers $3,113.0M market cap, $2,494.0M revenue, and $89.2M free cash flow, with 8.6% revenue growth and 3.6% FCF margin. 6.2 Quality rating, 43.4% gross margin, and 11.8% ROIC are solid, though 314.3% total debt to equity is high. At $49.5 intrinsic value, this lottery play merits BRSL analysis post 7.8% 1Y return.
Key Catalysts
- Stable 11.8% ROIC in lottery niche
- Decent 43.4% gross margin
- Consistent revenue base
Risk Factors
- High 314.3% debt to equity
- Low 3.6% FCF margin
Stock #8: Genius Sports Limited (GENI)
| Metric | Value |
|---|---|
| Market Cap | $2,724.6M |
| Quality Rating | 6.1 |
| Intrinsic Value | $12.6 |
| 1Y Return | 26.8% |
| Revenue | $604.5M |
| Free Cash Flow | $50.5M |
| Revenue Growth | 30.7% |
| FCF margin | 8.3% |
| Gross margin | 21.9% |
| ROIC | (16.3%) |
| Total Debt to Equity | 4.2% |
Investment Thesis
Genius Sports Limited (GENI) has $2,724.6M market cap, $604.5M revenue, $50.5M free cash flow, and 30.7% revenue growth. 6.1 Quality rating with 8.3% FCF margin and 21.9% gross margin, but 16.3% ROIC and 4.2% debt. Intrinsic $12.6 highlights value in sports data for betting, with 26.8% 1Y return.
Key Catalysts
- High 30.7% revenue growth
- Improving 8.3% FCF margin
- Data tech edge in gaming
Risk Factors
- Negative 16.3% ROIC
- Early-stage profitability risks
Stock #9: GigaCloud Technology Inc. (GCT)
| Metric | Value |
|---|---|
| Market Cap | $1,477.9M |
| Quality Rating | 7.5 |
| Intrinsic Value | $138.0 |
| 1Y Return | 103.4% |
| Revenue | $1,222.9M |
| Free Cash Flow | $188.1M |
| Revenue Growth | 10.2% |
| FCF margin | 15.4% |
| Gross margin | 23.1% |
| ROIC | 21.3% |
| Total Debt to Equity | 101.0% |
Investment Thesis
GigaCloud Technology Inc. (GCT) features $1,477.9M market cap, $1,222.9M revenue, $188.1M free cash flow, 10.2% growth, and 15.4% FCF margin. 7.5 Quality rating, 23.1% gross margin, 21.3% ROIC, but 101.0% debt. $138.0 intrinsic value and 103.4% 1Y return make it a top GCT analysis performer.
Key Catalysts
- Massive 103.4% 1Y return momentum
- Strong 21.3% ROIC and 15.4% FCF
- Tech-enabled logistics growth
Risk Factors
- 101.0% debt to equity
- Lower 23.1% gross margin
Stock #10: Accel Entertainment, Inc. (ACEL)
| Metric | Value |
|---|---|
| Market Cap | $961.6M |
| Quality Rating | 5.7 |
| Intrinsic Value | $18.2 |
| 1Y Return | 7.6% |
| Revenue | $1,307.0M |
| Free Cash Flow | $48.1M |
| Revenue Growth | 8.0% |
| FCF margin | 3.7% |
| Gross margin | 34.3% |
| ROIC | 12.5% |
| Total Debt to Equity | 7.6% |
Investment Thesis
Accel Entertainment, Inc. (ACEL) closes with $961.6M market cap, $1,307.0M revenue, $48.1M free cash flow, 8.0% growth, and 3.7% FCF margin. 5.7 Quality rating, 34.3% gross margin, 12.5% ROIC, low 7.6% debt. $18.2 intrinsic value suits gaming stock watchlist after 7.6% 1Y return.
Key Catalysts
- Efficient 12.5% ROIC
- Low 7.6% debt to equity
- Steady 34.3% gross margin
Risk Factors
- Thin 3.7% FCF margin
- Slower 8.0% growth
Portfolio Diversification Insights
These 10 stock picks cluster in online betting, gaming, lottery, and tech support (e.g., AAPL, GCT), with ~70% in pure-play betting/gaming (FLUT, DKNG, etc.) and 30% in adjacent high-quality names. Sector allocation favors consumer discretionary (gaming) at 80%, tech at 20%, reducing correlation risks. High-ROIC leaders like RSI 116.5% balance debt-heavy firms like CHDN 473.2%, while growth stars (SGHC 33.0%) complement stables (AAPL 6.4%). This mix enhances portfolio diversification across market caps from $961.6M to $4T, targeting undervalued stocks for balanced risk-reward.
Market Timing & Entry Strategies
Consider entry on pullbacks to intrinsic values (e.g., AAPL near $93.3, GCT $138.0), especially post-earnings or regulatory wins in betting. Dollar-cost average into high-growth like SGHC amid sector volatility, monitoring debt metrics. Watch Q4 gaming surges; scale in over 3-6 months for market timing in investment opportunities.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
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📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
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FAQ Section
How were these stocks selected?
Selected via ValueSense intrinsic value models, focusing on quality ratings >5.0, revenue growth, and prices below intrinsic values for best value stocks in online betting.
What's the best stock from this list?
GCT leads with 7.5 Quality rating, 103.4% 1Y return, and $138.0 intrinsic value, though RSI's zero debt and 116.5% ROIC competes strongly.
Should I buy all these stocks or diversify?
Diversify across the list for sector balance; allocate by quality (e.g., AAPL, RSI) and growth (SGHC, GENI) to manage risks in stock watchlist.
What are the biggest risks with these picks?
High debt (CHDN 473.2%, DKNG 181.5%), negative ROIC (DKNG, GENI), and FCF variability (SGHC €0.0) amid regulatory and competition pressures.
When is the best time to invest in these stocks?
Target dips to intrinsic values or positive catalysts like revenue beats; use entry strategies in favorable gaming cycles for optimal positioning.