Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
David Bain of Texas Capital Securities on September 9 looked at Red Rock Resorts:
“We forecast 4Q26E as the inflection point for continued year-over-year Adjusted EBITDA growth, a considerable near-term stock catalyst, in our view. Further, we believe Red Rock Resort’s current and historical valuation fail to capture its strategically positioned, wholly owned, Las Vegas portfolio. Locals Las Vegas drives nearly all Red Rock Resort’s earnings and stock, and it should generally outperform other market growth, in our view. Visible market population drivers (quantity/quality) include income tax benefits, lower overall cost of living relative to coastal metros, and expanding sports, entertainment and infrastructure. Red Rock Resorts has captured and retained an increasing percentage of the increasing Las Vegas Locals wallet with high ROI, strategic capex improvements, and a sticky loyalty program.”
Barry Jonas of Truist Securities on September 9 examined the NFL season’s wagering prospects:
“NFL kickoff is (September 9, Seahawks vs. Patriots), and several debates are dominating OSB/prediction market conversations right now: (1) what DraftKings, Flutter, Kalshi and peers are telling us about the season setup and what that means for the cannibalization debate with prediction markets in their first full NFL season; (2) how far promo investment escalates from here, led by FanDuel’s newly guided promo surge; and (3) where sports events contracts are headed now that the 9th Circuit has ruled (with more coming). With kickoff set for (September 9) we remain Buy-rated on DraftKings/Flutter as the “prediction market discount” increasingly looks like it can lessen.”
David Katz of Jefferies on September 13 looked at Bally’s/GLPI in Chicago:
“On September 14 at 12PM ET, Bally’s will host a conference call to provide an update on its downtown Chicago project. Investor focus will likely be on the project’s timeline, funding, and financing, particularly given concerns regarding for Bally’s liquidity and going concern ability, as noted in its recent 10Q. For GLPI, which is our coverage focus, the Chicago development represents its largest individual financing commitment of $940 million, of which $475.7 million has been funded as of June 30. The project is intended to be a key long-term driver for GLPI despite delays and incremental headwinds related to legalization of downtown Chicago VGTs, which have weighed on investor sentiment. We will look for implications for Bally’s Las Vegas site, which is on land lease from GLPI and its New York casino license, which would also prospectively include GLPI in some form.”
