Online gambling stocks saw a modest average increase of +1% over the past week (30.06–06.07), slightly underperforming the Nasdaq Composite’s +1.1% gain. MGM led the pack with a +9% jump, while DraftKings and Raketech lagged behind, falling -5% and -3% respectively.

Overview

  • Average growth – On average, share prices analyzed increased by +1% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by MGM with an increase of +9%, followed by Caesars (+5%).
  • “Loser” – DraftKings and Raketech had the worst weekly performance in our analysis, with a change of -5% and -3%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (+1.1%), the average development of the online gambling industry looks only slightly “worse”.

MGM’s rise

MGM’s share price jumped 9% last week, driven by strong momentum in two key areas. Macau gaming revenue surged 19% year-over-year in June, signaling a healthy recovery in one of MGM’s biggest markets. At the same time, BetMGM raised its full-year revenue forecast, boosting investor confidence in the company’s online betting growth.

DraftKings’s decline

DraftKings’ share price dropped last week largely due to a specific development: Illinois passed a steep tax hike on online sports betting, which directly affects DraftKings’ bottom line. Starting July 1, operators in the state now face a graduated tax rate of up to 40%, replacing the previous flat 15% rate.

Segment-specific developments

  • Online-focused operators – The shares of online-focused operators included in the analysis saw, on average, an increase of -1%; with Super Group (+4%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, MGM is the “winner” with +9% while the average share development was +4%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, an increase of +1%, with Jumbo Interactive (+3%) leading the ranking.
  • Affiliates – On average, affiliates’ shares saw a decrease of -0.3% with Catena Media (+2%) leading and Raketech (-3%) coming last.

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