Online gambling stocks performance was broadly positive last week, with the sector outperforming the Nasdaq Composite as average share prices rose by 3%. Strong gains from companies such as DraftKings and Rush Street helped drive sentiment, while a handful of weaker performers, like Catena Media, weighed on results. Across the different segments, online-focused and multi-channel operators delivered the strongest momentum, while affiliates remained the most challenging part of the market.

Overview

  • Average growth – On average, share prices analyzed increased by +3% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by DraftKings with an increase of +17%, followed by Rush Street (+13%).
  • “Loser” – Catena Media had the worst weekly performance in our analysis, with a change  -4%.
  • Comparison to the Nasdaq Composite – Compared to the flat performance of the Nasdaq Composite, the online gambling industry performed better on average.

Segment-specific developments

  • Online-focused operators – The shares of online-focused operators included in the analysis saw, on average, an increase of +4%; with DraftKings (+17%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Penn is the “winner” with +13% while the average share development was +5%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, an increase of +2%. The winner is Jumbo Interactive with +8%.
  • Affiliates – On average, affiliates’ shares saw a decrease of -0.4% with Better Collective (+3%) leading and Catena Media (-4%) coming last.

The share increase of DraftKings

DraftKings shares moved sharply higher during the week of 8–12 June after the company highlighted strong momentum in its DraftKings Predictions business. Investor sentiment was boosted by disclosures showing annualized trading volume on the platform rose 34% month-on-month to USD 3.1 billion in May, reinforcing expectations that prediction markets could become a meaningful new growth driver for the company.

The decline of Catena Media shares

Catena Media’s shares weakened during the week of 8–12 June as investors appeared to lock in gains following the company’s strong rally after its Q1 results in May. With no new operational updates or growth announcements released during the week, sentiment remained cautious, particularly as the market continued to focus on the longer-term challenges facing the North American affiliate sector and ongoing search traffic volatility.

 

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