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The iGaming industry had another strong week, with almost all major operators reporting gains. There were also a sizeable increases noticed among investors, as both large and medium companies had increased value through share trades. The market was led by industry leaders Flutter Entertainment and DraftKings but also saw benefit from a number of smaller operators , as investors are becoming less risk averse. The performance of the industry during this week expresses a solid growth story for the industry and shows that investors are returning to buy shares in companies that have strong positions in their respective markets, are improving profits and have a digital business that can be scaled significantly.
iGaming Sector: Weekly Stock Analysis
Large-Cap Leaders
Flutter Entertainment plc (+8.32%) – With an $18.06B market cap and $17.02B of revenue, Flutter was the largest this week and was also one of the best performing shares. DraftKings Inc. (+11.26%) – With the second largest rise in share price of the week, DraftKings also registered the highest volume of stock traded with over 16.7M shares and managed to show that investors have confidence in the direction of the company towards profitability and become the dominant competitor to U.S. sports-betting. Rush Street Interactive (+3.95%) – Rush Street continues to show outperforming and had another great week.
Rush Street benefits from its growing position in the online casino space and having a disciplined operating strategy. Super Group (SGHC) (+2.99%) – Achieved another solid gain with great trading volume at 7.6M shares. Mid-Tier Operators
Churchill Downs (+5.89%) – One of the top performers in the sector this week.
The rally shows growing confidence by the market toward diversified gaming operators that offer racing, casino and digital betting assets. Brightstar Lottery (+3.23%) – This stock continues its steady performance based on a proven defensive lottery-based business model.
Accel Entertainment (+1.22%) – A distributed gaming model provides reasonably stable revenue with low volatility, making it an attractive defensive investment during periods of market optimism. Codere Online (+3.43%) – This was among stronger performing companies with a focus on smaller operators. Small-Cap
Meridian Holdings (+8.67%) – One of the biggest winners for the week.
Bragg Gaming (+4.17%) – The stock had a good rebound after being down for a few weeks. Sports Entertainment Gaming Global (+5.47%) – Even with the very small market cap, the stock continues to attract speculative investment and is one of the more volatile names in the sector. High Roller Technology (+0.85%) – Though a highly speculative investment, this stock has benefited from the positive sentiment extending throughout the small-cap gaming stocks.
Underperformers
Gambling.com Group (-1.39%) – The only company in the dataset that ended the week in negative territory. With a scalable affiliate marketing model and a solid revenue base of $165.25M; gambling.com’s shares underperformed as a result of some profit taking and continued caution by investors regarding marketing driven gaming companies. Inspired Entertainment (+0.12%) – Finished close to unchanged. Although the company escaped the significant weakness that has been seen in the past several weeks, there was lackluster investor enthusiasm for Inspired compared to operators and suppliers that have stronger growth stories. The performance displayed this week is one of the best overall performance for the iGaming sector in recent months. There was only one stock that finished the week lower, which further illustrates the recovery of the sector as a whole.
In general, the market has moved back towards a risk on environment with investors rewarding larger, more profitable and long-term digital business models in the iGaming space.
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