Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
David Katz of Jefferies on May 24 wrote that investors are asking questions about Churchill Downs and its growth prospects:
“Although updated commentary on both has been limited the past few weeks, investors remain focused here. In general, the conversation around the shares is on overall execution, which includes the Kentucky Derby earnings growth and historical horse racing machine market growth. Our belief is that management. is focused on enhancing its operating capabilities, given the overall growth and prospective increased focus post-regional asset sales.”
J.P. Morgan’s Dan Politzer commented on New York online sports betting:
“Based on online sports betting data released by the New York Gaming Commission for the week ending May 17, GGR was +5% year-over-year and handle was -15% year-over-year, implying a 12.3% hold rate (+240 basis points year-over-year vs. the previous year’s comparable period). We note that during the most recent weekly period, there were seven total NBA playoff games (vs. nine in the prior-year period), and perhaps more importantly for New York specifically this week, there were zero Knicks games this year vs. three in the prior-year period. For second quarter to date (through 5/17/26), OSB GGR is tracking +22% year-over-year and handle is tracking -2% year-over-year, with a hold of 11.4% (+220 basis points year-over-year).”
Macquarie’s Chad Beynon looked at Bally’s May 21:
“Following 1Q, Bally’s continues to find ways to grow the business, while importantly finding ways to fund this growth. Upcoming growth projects (Chicago, NYC, Las Vegas), in our view, are core reasons for the equity story, albeit the projects still need to be largely financed (loan, sale leaseback, etc.).
