This week’s market was mixed with Flutter Entertainment and Churchill Downs leading the large-cap group, while Rush Street Interactive recorded the steepest decline among the major operators despite reporting strong Q3 revenue growth.
The key point of this week’s market analyze was RSI’s contrasting performance: its revenue increased substantially in Q3, but its shares fell 11.01% during the week.
Among smaller companies, Sports Entertainment Gaming Global posted the larhest increasy by percents and High Roller Technologies, Grandstand and Bragg Gaming recorded notable losses.
iGaming Sector: Weekly Stock Analysis
| Rank | Ticker | Company | Market Cap | Change | Volume | Revenue |
|---|---|---|---|---|---|---|
| 1 | FLUT | Flutter Entertainment plc | 14.33B | 4.29% | 2,362,986 | 17.16B |
| 2 | DKNG | DraftKings Inc. | 10.38B | 0.92% | 8,891,683 | 6.22B |
| 3 | CHDN | Churchill Downs Incorporated | 6.50B | 4.03% | 1,887,334 | 3.00B |
| 4 | SGHC | Super Group (SGHC) Limited | 5.43B | -0.28% | 6,893,540 | 2.43B |
| 5 | RSI | Rush Street Interactive, Inc. | 2.79B | -11.01% | 13,223,923 | 1.47B |
| 6 | BRSL | Brightstar Lottery PLC | 1.77B | 0.52% | 1,615,212 | 2.47B |
| 7 | ACEL | Accel Entertainment, Inc. | 922.36M | 0.53% | 393,355 | 1.39B |
| 8 | CDRO | Codere Online Luxembourg, S.A. | 393.31M | 1.53% | 28,098 | 262.52M |
| 9 | MRDN | Meridian Holdings Inc. | 123.55M | -2.64% | 23,360 | 197.19M |
| 10 | INSE | Inspired Entertainment, Inc. | 94.10M | -0.83% | 284,969 | 281.40M |
| 11 | ROLR | High Roller Technologies, Inc. | 39.71M | -7.46% | 86,149 | 15.63M |
| 12 | GRSD | Grandstand Limited | 39.16M | -5.17% | 218,810 | 163.42M |
| 13 | BRAG | Bragg Gaming Group Inc. | 30.06M | -6.86% | 8,330 | 117.71M |
| 14 | SEGG | Sports Entertainment Gaming Global Corporation | 4.54M | 18.75% | 46,980 | 1.54M |
Large-Cap Leaders
Flutter Entertainment (+4.29%)
Flutter’s market capitalization grew to $14.33 billion, making the company the biggest mover of the five largest firms. The rise came despite some issues including the shutdown of Betfair Brazil because of the country’s betting laws. Flutter still had its Betnacional operations, and it previously mentioned that the indefinite suspension can result in a revenue loss of $70 million and a $20 million decline in adjusted EBITDA. The firm is also planning to cut as many as 1,400 positions in its UK and Ireland division due to higher gambling taxes and to close the Sky Bet office in Malta, moving its operations to Gibraltar.
DraftKings (+0.92%)
DraftKings increased to $10.38 billion market capitalization with 8.9 million shares changing hands. The increase is on the small side compared to Flutter and Churchill Downs.
Churchill Downs (+4.03%)
Churchill Downs gained to $6.50 billion market capitalization making it one of the best performers among major companies. The week’s increase indicates some positive momentum for the stock but the numbers provided do not state any precise reason for the earnings or operational performance to increase.
Super Group (-0.28%)
Super Group’s market capitalization fell just short to $5.43 billion. The firm’s Sportingbet brand was impacted by Brazil’s betting ban, although the impact on parent company should be considered in context of its overall geographic exposure.
Rush Street Interactive (-11.01%)
The company had its market capitalization go down to $2.79 billion, leading to the biggest loss in the market value among its peers. The news came on the heels of the company’s impressive Q3 earnings report that was published on October 28. According to the report, the company’s revenue was $385.9 million, representing a 38.8% growth from 2022, and nearly doubling net income (to $28.7 million). The adjusted EBITDA metric increased 73% and reached the value of $62.2 million, ahead of the consensus of $54.67 million. The adjusted EPS index was also good news as it stood at $0.15 vs. expected $0.13.
However, the revenue itself fell slightly short of the analysts’ expectations of $388.6 million, meaning that the company’s result was published slightly below the consensus (at a 0.7% miss). The revenue amount was also lower than the figure of $393.8 million from Q2 despite the annual growth of the company being impressive as usual.
The available figures do not establish a single cause for the decline.
Smaller Companies: Mixed Performance
- Brightstar Lottery (+0.52%): Brightstar increased to a $1.77 billion market capitalization, recording a strong gain.
- Accel Entertainment (+0.53%): Accel rose to $922.36 million, maintaining a positive position for the week.
- Codere Online (+1.53%): Codere Online increased to a $393.31 million market capitalization. The company operates across several regulated markets in Europe and Latin America, making regional regulatory developments relevant to its outlook.
- Meridian Holdings (-2.64%): Meridian declined to $123.55 million, continuing the negative trend among several smaller stocks.
- Inspired Entertainment (-0.83%): Inspired fell slightly to a $94.10 million market capitalization, which was relatively modest compared with other smaller companies.
- High Roller Technologies (-7.46%): High Roller dropped to $39.71 million, recording one of the largest losses among the listed companies.
- Grandstand (-5.17%): Grandstand decreased to a $39.16 million market capitalization.
- Bragg Gaming (-6.86%): Bragg declined to $30.06 million, making it another significant underperformer.
- Sports Entertainment Gaming Global (+18.75%): SEGG surged to $4.54 million, recording the strongest percentage gain across the entire list.
The performance witnessed this week demonstrates the clear separation between major players and small gambling companies when it comes to their market capability. While Flutter Entertainment and Churchill Downs experienced significant price improvement, DraftKings and Super Group showed stable performance. Among the rest of major players, RSI stands out with an 11.01% drop in its market value when compared to its profitability in the last quarter.
The figures from RSI’s quarterly report indicate that the company has been able to maintain its growth in revenue and profit and the number of active users throughout the quarter. Meanwhile, the performance of smaller companies remained uneven.