The online gambling stocks performance showed mixed results over the past week, with average share prices slipping by 0.2%. Gentoo Media led the gains with a strong 10% rise, while Playtech and Evolution saw the sharpest declines. Overall, the sector lagged behind the Nasdaq Composite’s 0.9% uptick, reflecting a weaker short-term sentiment across most industry segments.

Overview

  • Average growth – On average, share prices analyzed decreased by -0.2% 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 +10%, followed by Penn (+4%).
  • “Loser” – Playtech and Evolution had the worst weekly performance in our analysis, with a change of -17% and -6%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (+0.9%), 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, an increase of -0.8%; with Betsson (+4%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Penn is the “winner” with +4% while the average share development was +2%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, a decrease of -3%. The winner is Sportradar with +3%
  • Affiliates – On average, affiliates’ shares saw an increase of +1% with Gentoo Media (+10%) leading and Better Collective (-2%) coming last.

The decline of Playtech shares

It comes as no surprise that both companies with the worst share performance last week were Playtech and rival Evolution. And it shows that both companies and likely the entire industry suffer from this dispute. What happened in a nutshell. Due to allegations from rival Evolution that Playtech’s subsidiary commissioned a report (Evolution calls it a “smear campaign”) via intelligence firm Black Cube. After Evolution revealed on Tuesday that Playtech commissioned the report, the Playtech share price plunged by ca. 30% but then recovered quickly to some extent.

Playtech’s stock decreased amid investor concern over regulatory and legal risk. The controversy drew significant media attention, with analysts warning that the accusations could strain Playtech’s industry relationships and distract management at a sensitive time for the 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.