Online gambling stocks performance was relatively resilient last week, with the sector posting an average decline of 0.7%, outperforming the Nasdaq Composite, which fell 3%. While strong gains from companies such as Entain and MGM helped support the market, the overall picture remained mixed as sharp losses in a handful of stocks weighed on several segments.

Overview

  • Average growth – On average, share prices analyzed decreased by -0.7% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by Entain with an increase of +6%, followed by MGM (+6%).
  • “Loser” – Jumbo Interactive and Evolution had the worst weekly performance in our analysis, with a change of -21% and -6%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (-3%), the average development of the online gambling industry looks “better”.

Segment-specific developments

  • Online-focused operators – The shares of online-focused operators included in the analysis saw, on average, a decrease of -0.6%; with Rush Street (+3%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Entain is the “winner” with +6% while the average share development was +3%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, a decrease of -5%. The winner is Bragg with +3%.
  • Affiliates – On average, affiliates’ shares saw a decrease of -1.0% with Catena Media (+4%) leading and Gambling.com (-6%) coming last.

The share increase of Entain

Entain’s shares gained ground after the company announced the sale of an initial 20% stake in its Central and Eastern European business to EMMA Capital for approximately EUR 425 million, marking the first step in a planned full exit from the venture. Investors welcomed the deal because it unlocks value, reduces debt, simplifies the group’s structure and leaves management comfortable with its full-year EBITDA expectations despite the accounting changes.

The decline of Jumbo Interactive shares

Jumbo Interactive’s shares came under pressure after a broker downgrade during the week, with analysts taking a more cautious stance on the stock despite maintaining a positive long-term view of the business. The decline was amplified by the absence of any new company-specific catalysts, leaving investors focused on valuation and profit-taking following earlier gains.

 

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