Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
David Katz of Jefferies on October 5 weighed in on the recent Global Gaming Expo:
“G2E reinforced our view that gaming equities remain caught between weak near-term narratives and stronger long-term earnings power. Prediction markets again dominated discussions, alongside demand trends, consumer health, and capital allocation. Across digital operators, casinos, and suppliers, valuations appear to underappreciate future EBITDA and cash flow potential, creating attractive setups for investors willing to look through near-term uncertainty.”
Truist Securities’ Barry Jonas on October 5 also looked at G2E:
“G2E dominant themes were prediction markets’ legal uncertainty, gaming M&A, (Las Vegas) Strip macro challenges, regionals/Locals strength and REIT (Real Estate Investment Trust) opportunities. While the sector is largely out of favor at near peak pessimism levels, valuations are increasingly enticing across our coverage and we could see some stocks primed for a rebound, like Red Rock Resorts, Genius Sports and Boyd.”
J. P. Morgan’s Dan Politzer on September 30 commented on meetings during G2E with DraftKings’ executives:
“We met with CFO Alan Ellingson and Investor Relations Matt Gaudioso as part of our investor meetings at G2E in Las Vegas. Key takes: (1) Core online sports betting trends are tracking well 3QTD, with handle a bright spot, and hold tracking “just fine” outside of New York; (2) igaming: DraftKings continues to target the slots-first customer, and is slowly regaining igaming traction, but it will take time; (3) Prediction markets investment is being pulled forward from FY27 into FY26, with DraftKings citing lifetime values that are higher than initially forecast and customer acquisition costs s lower than initially forecast; (4) the prediction market regulatory backdrop is uncertain, but DraftKings sees a legitimate possibility that sport prediction markets are here to stay, but scope may be limited to single game event trades that carry economic implications.”
