Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
Prediction markets poised for launch
Truist Securities’ Barry Jonas on December 19 wrote “DraftKings launched its prediction app this morning in 38 states (including California, Florida, Georgia, and Texas) while we think FanDuel’s launch is imminent. Both appear comfortable proceeding without putting their core state gaming licenses at risks. With multiple court cases outstanding, we likely haven’t heard the last on the matter- with a Supreme Court showdown likely, in our view. We think both DraftKings and Flutter can outperform as there is clarity (banning or proceeding sports contracts); though admittedly there are multiple and sizable risks along the way – perhaps somewhat explaining why the stocks have not moved much today.”
Digital gaming prospects hopeful
David Katz of Jefferies on December 21 wrote about digital gaming in 2026.
“We enter 2026 with a positive outlook on digital gaming, given its unmatched growth profile in our coverage,” Katz wrote. “Our updated forecasts are financial year 2026 revenue and Adjusted EBITDA up ~20% and ~44%, respectively, with financial year 2027 at ~14% and ~29%. The stock opportunity in part lies in the near-term noise around prediction markets, structural hold, and specific tax rate concerns in online sports betting, which we expect to become clearer in FY26. We reiterate Buys on DraftKings, Rush Street, SportRadar, and Gambling.com.
Revenue per available room outlook
Daniel Politzer of J. P. Morgan looked at U.S. revenue per available room, which was “-1.1% for the week (average daily rate up and occupancy down), with U.S. Top 25 markets RevPAR -1% (-1.4% running 28 days) vs. all other markets revenue per available room -1.1%,” he said. “Tidbits: (1) Group RevPAR (luxury) was -3.4%, while Transient (luxury/upscale) was +1.4%; (2) Urban and airport hotels were positive this week, while suburban, interstate, resort, and small-town hotels declined; (3) 4Q25TD U.S. RevPAR tracking -1.1%, while Group RevPAR (luxury/upscale) tracking +2.5% vs. Transient (luxury/upscale) +1.4%. Best-performing markets were: (1) Orange County +15%; (2) Phoenix +11%; (3) San Francisco/San Mateo +11%. Worst-performing markets were: (1)R NOLA -30%; (2) Washington D.C. -24%; (3) San Diego -19%.
