Chad Beynon of Macquarie expects “cautiously optimistic” commentary from sports betting and online casino operators, which he said should be a positive for their stocks.
He also, however, trimmed multiple gaming stock targets to account for the latest updates on Las Vegas and Brazil‘s markets, lower sports betting hold and higher predictions investments.
Gaming stocks are down 12% over the last month and 22% over the last quarter, but public data backs up Beynon’s assessment that the industry “remains resilient.”
Gaming stock targets changes
Seven stocks related to sports betting and online casinos saw their targets fall after Beynon’s model revisions:
- BetRivers parent Rush Street Interactive, $33 (-$2), 61% upside as of Tuesday’s close
- DraftKings, $34 (-$4), 72%
- FanDuel parent Flutter, $128 (-$22), 68%
- Genius Sports, $11 (-$1), 77%
- Inspired, $7 (-$2), 76%
- MGM, $48 (-$7), 57%
- Sportradar, $19 (-$1), 56%
Caesars ($31) and Penn Entertainment ($25) were the only two online gaming companies that did not see their target change. Of the nine total companies, Beynon rates Caesars and Inspired as neutral with the other seven rated as outperform.
Sports betting, online casino expectations
Beynon expects the market to report online sports betting gross revenue growth around 6% while online casino revenue should be up 18%.
Sportsbooks had a strong July from the World Cup but saw August handle fall slightly at 1%. September handle growth is improved, he said, with DraftKings noting double digit growth halfway through the month.
His model changes put Beynon’s estimate for online sports betting revenue at $18.5 billion, up 3.4% over 2025. He now forecasts $12.1 billion in online casino revenue, which would be 15.3% above last year.
As for predictions, Beynon says Kalshi likely averaged around $450 million in daily taker volume for September. That should continue to tick up every month through the fourth quarter, he added.
