The online gambling stocks performance showed a mixed picture last week, with most companies in the sector posting declines. On average, share prices dropped by around 3%, lagging behind the Nasdaq Composite’s slight gain. While Gentoo Media and Catena Media stood out with strong double-digit increases, others like Rush Street and Caesars faced notable losses, highlighting the sector’s uneven momentum.

Overview

  • Average growth – On average, share prices analyzed decreased by -3% 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 +14%, followed by Catena Media (+13%).
  • “Loser” – Rush Street and Caesars had the worst weekly performance in our analysis, with a change of -12% and -11%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (+0.4%), 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 Bet-at-Home (+4%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Evoke is the “winner” with +3% while the average share development was -4%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, a decrease of -7%.
  • Affiliates – On average, affiliates’ shares saw an increase of +4% with Gentoo Media (+14%) leading and Gambling.com (-7%) coming last.

The share increase of Gentoo Media

The strong share move in Gentoo Media during the period likely reflects the company announcing that it had renegotiated the terms of its €25 million revolving credit facility – a development that eased near-term financial pressure and highlighted improved financial flexibility. While this doesn’t fully explain the double-digit jump, it likely bolstered investor confidence in the affiliate business and helped drive the positive swing in its stock.

The decline of Rush Street shares

The share decline of Rush Street Interactive between October 27 and October 31 seems tied to investor caution despite its strong quarter. While revenues rose ~20% and it raised full-year guidance, the beat may have been overshadowed by concerns over execution in its lower-margin retail business and elevated marketing spend.

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