Direct Answer
10 SEC filers are classified under the Standard Industrial Classification code that describes the online sports betting & gaming industry, and their latest annual reports show $109.2 billion of combined revenue and a median operating margin of 6.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Online sports betting and gaming companies take wagers and run casino games through apps, earning a share of the amount bet after taxes and promotions. Customer acquisition and state-by-state regulation drive profitability. The first numbers to compare across companies here are handle and gross gaming revenue, hold percentage and customer acquisition cost.
Key Industry Metrics
- Handle and gross gaming revenue: Total amount wagered and the revenue kept by the operator after paying winners. Handle shows activity, while gaming revenue is handle times hold, so both help explain results.
- Hold percentage: Share of wagers kept by the operator. It varies by chance in the short run, so a single quarter can be unusually high or low, and averages across periods are more reliable.
- Customer acquisition cost: Marketing and promotion spending to win each new bettor. Compare it with revenue per customer and retention to see when growth becomes profitable.
- Active customers: Number of users who wagered in a period. Growth shows reach, but spending per customer and retention show quality.
- Adjusted EBITDA: Operating profit before interest, tax, depreciation and amortization, adjusted by the company. Definitions vary, so watch what is excluded, such as stock pay.
Primary Macro Drivers
- State legalization: Each new state that legalizes wagering opens a market, adding customers and handle after an upfront launch and marketing investment.
- Customer acquisition and promotions: Bonuses and advertising bring users, but cost reduces margin; watch acquisition cost and active customers.
- Sports calendars: Big seasons and events drive wagering, so handle clusters around league schedules and championship events.
- Tax rates: State taxes take a share of revenue, so rates set margin per dollar of gross gaming revenue.
Major Risks
- Tax and regulatory changes: Higher taxes or new limits change unit economics, reducing adjusted EBITDA, so watch state-level rule changes and disclosed effective tax rates.
- Promotional intensity: Heavy bonuses to win customers cost margin and can be hard to reduce once competitors match them.
- Hold volatility: Results vary by outcomes, so quarterly gross gaming revenue swings even with steady handle.
- Responsible gaming rules: Limits on advertising, deposits or product types can reduce acquisition and engagement.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | High |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Online Sports Betting & Gaming Filers in the SEC Record
10 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 7990. Their latest fiscal years end in 2025, and together they reported $109.2 billion of revenue. Median revenue growth over the prior year was 1.4%. Median operating margin was 6.3% and median net margin 4.9%. Median total liabilities were 86% of total assets, and 7 of 10 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Walt Disney Co | $94.4 billion | 3.4% | 18.6% | 13.1% | FY 2025 |
| Draftkings Inc. | $6.1 billion | 27.0% | -0.3% | 0.1% | FY 2025 |
| Vail Resorts Inc | $3.0 billion | 2.7% | 18.9% | 9.4% | FY 2025 |
| Brightstar Lottery Plc | $2.5 billion | -0.0% | n/a | 5.9% | FY 2025 |
| Stubhub Holdings, Inc. | $1.7 billion | -1.4% | -77.0% | -109.2% | FY 2025 |
| Madison Square Garden Entertainment Corp. | $943 million | -1.7% | 13.0% | 4.0% | FY 2025 |
| Vivid Seats Inc. | $451 million | -30.5% | n/a | 178.9% | FY 2025 |
| Seaport Entertainment Group Inc. | $130 million | 18.3% | -90.6% | -89.5% | FY 2025 |
The 8 largest of 10 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Online Sports Betting & Gaming guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Online Sports Betting & Gaming industry?
Key performance indicators for the Online Sports Betting & Gaming industry include: Handle and gross gaming revenue, Hold percentage, Customer acquisition cost, Active customers, Adjusted EBITDA. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Online Sports Betting & Gaming industry?
The Online Sports Betting & Gaming industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Online Sports Betting & Gaming industry?
The primary risks for Online Sports Betting & Gaming companies include: Tax and regulatory changes, Promotional intensity, Hold volatility, Responsible gaming rules. Investors should assess each company's exposure to these factors and its track record of navigating them.