Online gambling stocks performance was relatively muted last week, with average gains of just +0.7%, slightly trailing the broader Nasdaq Composite. While standout movers like Kambi and Rush Street delivered strong double-digit growth, the overall picture was weighed down by weaker results from names such as OPAP and Evoke. Performance varied across segments, with online-focused operators and suppliers showing modest gains, while multi-channel operators lagged behind.

Overview

  • Average growth – On average, share prices analyzed increased by +0.7% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by Kambi with an increase of +24%, followed by Rush Street (+17%).
  • “Loser” – OPAP and Evoke had the worst weekly performance in our analysis, with a change of -10% and -9%.
  • 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, an increase of +2%; with Rush Street (+17%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Caesars is the “winner” with +1% 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 Kambi with +24%.
  • Affiliates – On average, affiliates’ shares saw an increase of +3% with Catena Media (+8%) leading and Gentoo Media (+0.2%) coming last.

The share increase of Kambi

Kambi’s share price moved higher during 27.04–01.05 following its Q1 trading update released that week, which highlighted solid revenue growth and continued momentum in its partner network. The company pointed in particular to strong underlying trading activity and a supportive sports betting margin, which reassured investors after a more volatile start to the year.

On top of that, Kambi reiterated confidence in its long-term outlook, which helped reinforce the positive sentiment around the stock.

The decline of OPAP shares

OPAP’s weaker share performance during 27.04–01.05 appears to be driven by its dividend-related corporate actions finalized that week. Following the close of the scrip dividend election period on April 27, the company confirmed the issuance of new shares, which introduced short-term dilution and typically puts pressure on the stock.

At the same time, the transition past the dividend record and election dates often leads to softer trading, as the stock adjusts to the payout and loses some of its near-term yield appeal.

 

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