With March Madness set for tip-off in just days, keep an eye on gambling stocks.

In 2023, it was estimated that $15.5 billion was bet on the games – a major year-over-year increase from $3.1 billion. This year, with more states allowing online gambling,  related stocks could push even higher. Keep an eye on stocks such as:

DraftKings (DKNG)

Ahead of the Super Bowl and March Madness, DKNG has pushed aggressively higher.  In fact, in 2023, DKNG ran from about $15 to about $20 between the two sporting events. In 2024, DKNG ran from about $33 to $41.62 so far.

And now as we head into March Madness it could run again. Helping, analysts at Barclays recently upgraded DKNG to an overweight rating, with a price target of $50 from $41. All on the belief there’s “significant growth” in the U.S. digital gaming market.

Flutter Entertainment (FLUT)

Flutter Entertainment (FLUT) has been just as explosive. In 2023, the stock ran higher ahead of the Super Bowl, and March Madness. In 2024, it ran ahead of the Super Bowl, and, much like DKNG, it’s likely to run heading into March Madness.

FLUT was also upgraded by Barclays. As noted by Seeking Alpha;

“Analyst James Rowland Clark noted that while the firm has been concerned about heightened U.S. competition, FanDuel has maintained sports betting market share and increased its iGaming market share over the past twelve months. Clark also boosted the forecast for Flutter Entertainment’s 2024 adjusted EBITDA tally and said the core business appears to be de-risked. Key catalysts seen for the stock include the upcoming release of U.S. GAAP financials and a vote on a primary U.S. listing at the next shareholder meeting.”