Online gambling stocks performance was weaker overall last week, with the companies in our analysis down 2% on average, compared with a 1% gain for the Nasdaq Composite. Gentoo Media (+13%) and Bragg (+9%) stood out on the upside, while Jumbo Interactive (-13%) and DraftKings (-12%) recorded the largest declines.

Overview

  • Average growth – On average, share prices analyzed decreased by -2% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by Gentoo Media with an increase of +13%, followed by Bragg (+9%).
  • “Loser” – Jumbo Interactive and DraftKings had the worst weekly performance in our analysis, with a change of -13% and -12%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (+1%), the average development of the online gambling industry looks “worse”.

Segment-specific developments

  • Online-focused operators – The shares of online-focused operators included in the analysis saw, on average, a decrease of -4%; with Betsson (+3%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators with a relevant retail business, Caesars recorded the smallest decline at -0.1%, while the segment fell by 4% on average.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, a decrease of -2%. The winner is Bragg with +9%.
  • Affiliates – On average, affiliates’ shares saw an increase of +2% with Gentoo Media (+13%) leading and Grandstand (-10%) coming last.

The share increase of Gentoo Media

Gentoo Media’s shares gained around 13% over the week, with almost the entire move coming on 16 September, when the stock jumped 12.2% on significantly higher trading volume. There was no new company announcement that day, but the rise came shortly after Gentoo-owned AskGamblers launched its first-ever Sportsbook Showdown on 14 September, while the shares were also recovering from the sharp sell-off that followed Gentoo’s August guidance cut.

The decline of Jumbo Interactive shares

Jumbo Interactive fell sharply during the week as investors positioned ahead of its removal from the S&P/ASX 300, which took effect after trading on 18 September and likely triggered selling by index-tracking funds. The pressure was compounded by already weak sentiment around the stock following recent cuts to earnings expectations for its international business.

Please find more data and the methodology applied in the current edition of the OGQ Magazine. Also, find more content in our data section.