An exchange-traded fund (ETF) is a collection of stocks or investments bundled into one package. You can buy and sell an ETF on the stock market like a regular stock. ETFs allow investors to gain exposure to specific sectors or industries without the need to manage individual assets.
The gambling industry is booming in 2025, thanks to the rise of online gaming, sports betting, and innovative tech like virtual experiences. Therefore, gamblers’ continued interest in these assets is not accidental. The best gambling ETFs offer an efficient way to invest in this thriving market, providing access to top-performing companies while spreading risk.
The Gambling Market and Its Development: Growth and Expansion
Don’t be surprised that casinos integrate ETF into their activities and incentivise its use. The last decade has been favourable to the online casino industry, with revenue surpassing expectations year after year. Below are some notable factors driving the growth of the industry:
- Innovations: Innovations like online gameplay, crypto gambling, live dealer games, AI in casinos, AR and VR gaming, special no deposit offers, and others are increasing daily in the industry. You can get 15 free spins no deposit without even paying a dime to the casino. Such free spins promotions enable players to explore the platform and make them come back for more. Besides, they have widened the appeal of casinos to younger demographics.
- Legalisation and Improved Security: Many countries are now relaxing casino regulations and creating frameworks for online gaming. This gives gambling a soft landing in more places. The industry is witnessing improved security with improved cybersecurity measures.
- Cultural Acceptance and Accessibility: Before now, the social stigmatisation of gaming has made many people hide their interest in the activities. However, people now see gambling more as entertainment, widening the acceptance. Gambling is increasingly available online, increasing accessibility.
Top ETFs for Gambling
Gambling-focused ETFs are gaining traction as one of the most exciting ways to invest in the rapidly growing industry. These funds provide an accessible entry point for investors in companies across the casino sector, including online platforms, sports betting, and gaming technology firms. The table below reveals the best gambling ETFs to explore as a forward-thinking investor:
| ETF | Are of Focus | Key Holdings | Expense Ratio |
| VanEck Gaming ETF (BJK) | Global exposure to companies in the gaming and casino industry | Las Vegas Sands, MGM Resorts, Galaxy Entertainment | 0.74% |
| Roundhill Sports Betting & iGaming (BETZ) | Companies involved in sports betting and online gambling | DraftKings, Flutter Entertainment, Entain | 0.75% |
| Global X Gaming & Esports ETF (HERO) | Gaming and esports companies, including online casinos | Activision Blizzard, NVIDIA, Aristocrat Leisure | 0.50% |
| Defiance Next Gen Gaming ETF (VIDA) | Next-generation gaming technologies, including VR and AR gambling | Unity Software, Roblox, Caesars Entertainment | 0.65% |
| First Trust Nasdaq Gaming ETF (FTNG) | Companies listed on the Nasdaq | Penn National Gaming, Wynn Resorts, Light & Wonder | 0.60% |
How to Choose the Best Gambling ETFs in 2025
It is best to familiarise yourself with the ETF space before making a financial commitment. You should look carefully at the evolving gaming and betting industry trends and opportunities. With the rise of digital gaming, esports betting, and cryptocurrency-friendly platforms, selecting ETFs that align with these innovations is essential. Below are notable factors to evaluate for a strong ETF portfolio:
- Expense Ratio: This refers to the cost of managing and operating the fund, which is deducted from the fund’s returns. A lower expense ratio means a higher value for the ETF.
- Geographical Exposure: While ETFs are global assets, they have different geographical coverage. Focusing more on ETG with global coverage will encourage a strong portfolio.
- Sector Focus: Each ETF has a sector it focuses on, even though it tends to be all-around. Carefully evaluating an ETF’s sector will expose its viability. For instance, some ETFs focus on online gambling, while others focus on physical casinos. The first ones are bound to be more accessible, easing trade.
- Liquidity: An ETF’s liquidity determines how easy it is to buy and sell. A highly-liquid ETF has more advantages due to its easy trading process.
- Historical Performance: While past performance does not guarantee future success, the world has seen more data-driven success. Therefore, it is important to evaluate an ETF’s historical performance.
- Market Trends: The general casino market greatly influences the performance of ETFs. After all, they function as a part of the whole market. Therefore, it is vital to be vigilant about market issues, including regulations, consumer behaviours, and technological advancements.
Risks of Investing in Gambling ETFs
Gambling ETFs are relatively new, even newer than cryptocurrencies. Given the industry’s testy landscape, these ETFs have many associated risks. Knowing these risks before investing in ETFs is essential, as adequate knowledge will enable informed decisions.
Regulatory uncertainties are starting strong among the testy considerations of investing in gambling ETFs. These ETFs are new, and the industry periodically changes. This means there is no certainty regarding regulations, which might improve ETFs’ performance in the long run.
Economic recessions and other downturns can also affect gaming, which in turn can affect the profitability of gambling ETFs. Apart from general economics, competition in the casino sector is becoming fierce daily. Many platforms keep rising daily, reducing the profitability of gambling ETFs.
Considering the industry’s volatility, investing in gambling ETFs can be risky. The industry is plagued by regulatory uncertainties, economic problems, competition, and technological disruptions.
Why ETFs in Gambling Remain an Attractive Choice
Despite their risks, gambling ETFs remain attractive because of their various benefits. The industry’s growth potential is a driving factor in its advantages. Innovative technologies in the industry and the ease of diversification enable strong returns.
Fortunately, regulations are solidifying within the casino industry. Gambling is also becoming more entertaining: there is a blend of gaming with other forms of entertainment, including esports and VR gambling. This mix is increasing the audience landscape enhancing the use of ETFs.
Lastly, the casino industry has shown resilience over time despite economic challenges. It is recovering quickly from an economic downturn, making gambling ETFs enticing.
Conclusion
Gambling ETFs present a promising opportunity to tap into one of the fastest-growing industries globally. With diverse offerings, investors can align their portfolios with the future of gaming, from brick-and-mortar casinos to cutting-edge iGaming platforms.
However, choosing the best ETFs requires careful review; it involves checking their various features, such as global usage and accessibility, liquidity, and expense ratio. It is also worth noting that ETFs have some dangers, especially relating to the industry’s volatility. However, the advantages are worth more than the downsides.
