Published on: June 16, 2026, at 12:51h.
Updated on: June 16, 2026, at 12:51h.
- The Roundhill Sports Betting ETF is transitioning to an actively managed fund.
- Previously, it tracked a Morningstar index.
- This ETF is the pioneer in focusing on iGaming and sports betting equities.
The Roundhill Sports Betting & iGaming ETF (NYSE: BETZ), the inaugural exchange traded fund (ETF) dedicated to the burgeoning sectors of iGaming and sports betting stocks, is set to lose its designation as a passive fund.
Effective June 18, BETZ will transition into an actively managed ETF and cease tracking the Morningstar Sports Betting & iGaming Select Index — the benchmark it previously utilized. This announcement came from Roundhill, based in New York, on Monday.
According to the fund issuer, “The Fund will maintain its focus on the sports betting and iGaming segments. Its holdings will typically consist of companies engaged in both online and retail sports betting, online casino gaming, along with the technologies and services that support these sectors.”
Roundhill has not disclosed the rationale behind transforming BETZ from a passive to an actively managed fund.
History of BETZ
Launched in June 2020, the Roundhill fund captured significant investor interest as the US sports betting landscape broadened post the Supreme Court’s decision to repeal the Professional and Amateur Sports Protection Act (PASPA) in 2018. This growth was further propelled by the closure of land-based casinos across the nation due to the pandemic.
Throughout various points in 2021, BETZ amassed over $400 million in assets under management, even nearing $500 million, fueled by the explosive growth of sports betting stocks like DraftKings (NASDAQ: DKNG) and Penn Entertainment (NASDAQ: PENN).
However, the “bubble” burst in 2021, causing major sports betting stocks to decline and leading retail investors to lose interest, with some withdrawing funds from BETZ. At present, the ETF holds $51.37 million in assets under management, based on issuer data.
BETZ has outpaced its competitors in the betting ETF arena, positioning itself as the only remaining ETF singularly dedicated to wagering stocks, while others that invest in casino, iGaming, and sports wagering equities also include exposure to additional internet and leisure sectors.
What Does BETZ’s Active Management Mean?
At this point, predicting the adjustments that may occur to the BETZ portfolio following its transition to active management is challenging, as Roundhill has not shared specific details on this matter. One assurance is that active funds operate with greater flexibility, unlike those constrained by index guidelines.
This flexibility opens the door for potential modifications to the BETZ lineup, whether that involves increasing or reducing sports betting allocations or including international stocks; however, this remains speculative for the moment.
As it stands, the ETF’s largest US-traded holdings include Rush Street Interactive (NYSE: RSI), Super Group (NYSE: SGHC), and DraftKings, accounting for almost 20% of the BETZ portfolio.