Gaming stocks had yet another dismal week, and the Roundhill Sports Betting & iGaming ETF, which invests in a basket of gaming companies, closed nearly flat, underperforming the S&P 500 Index, which rose almost 1% to hit new record highs. BETZ is down 7.7% for the year, even as the S&P 500 is sitting on year-to-date (YTD) gains of 5.6%.
Rush Street Interactive and Gambling.com were among the biggest gainers last week, while Robinhood and Playtech were the biggest losers.
Biggest Gainers
Rush Street Interactive (NYSE: RSI) +19.79%
With a gain of nearly 20% last week, Rush Street Interactive was by far the biggest gainer in our coverage of gaming stocks. The stock is up over 45% this year and hit record highs last week after it reported stellar Q1 2026 earnings and raised its guidance.
Its revenues rose 41% year-over-year (YoY) to $370.4 million, easily surpassing the $330 million analysts had expected. The key driver of higher revenues was the 51% rise in monthly active users (MAUs). Its net income more than doubled to $26.2 million, beating estimates. RSI also raised its annual guidance and expects to generate revenues of $1.52 billion at the midpoint. It also raised its adjusted EBITDA guidance to $230M–$250M, implying an increase of 50%-63%.
After the impressive earnings, several brokerages, including Macquarie, Benchmark, Oppenheimer, and Susquehanna, raised Rush Street’s target price.
Gambling.com (NYSE: GAMB) +10.11%
Gambling.com rose over 10% last week, which helped it narrow its YTD losses to around 26%. There wasn’t any major company-specific news last week, but it announced it would release its Q1 2026 earnings on May 14. Last month, the company announced a leadership change. Kevin McCrystle will take over as the CEO later this month following the annual general meeting (AGM). Investors are optimistic that the new leadership will provide more clarity on how the company is navigating Google’s SEO changes, which had previously weighed on the stock.
Playtika Holdings (NYSE: PLTK) +9.41%
Playtika was among the major gainers last week, with its stock price nearly doubling. There wasn’t any major company-specific development last week, but in April, Playtika announced a “review of strategic alternatives to maximize shareholder value.”
The company has formed a special committee of independent directors that is tasked with “conducting a comprehensive review and evaluation of strategic alternatives across its portfolio.” The announcement is a signal that the company is seriously considering a sale or a merger.
Prior to the announcement, PLTK had been trading near all-time lows following a disappointing Q4 2025 earnings report and the suspension of its dividend. The buyout buzz triggered a massive short-covering and bargain-hunting rally.
Biggest Losers
Robinhood Markets (NYSE: HOOD) -13.04%
Robinhood was the biggest loser in our coverage of gaming stocks, and the only name to see a double-digit decline last week. The stock, which soared last year, among others, on optimism about its prediction market business, has lost over a third of its market capitalization this year.
Last week’s decline could be attributed to Robinhood’s Q1 earnings. Its revenues rose 15% YoY to $1.07 billion, but the figure fell short of the $1.17 analysts had expected. The EPS came in at $0.38, which also fell short of estimates. Notably, while Robinhood’s stock trading and prediction markets business did well in the quarter, the 47% decline in cryptocurrency revenues dragged down its overall performance.
The company saw record volumes in its prediction markets in Q1 and is gearing up for the joint venture with Susquehanna to launch its CFTC-regulated prediction market exchange and clearinghouse.
Playtech Plc (LSE: PTEC) -8.07%
Playtech Plc fell by over 8% last week, which looks like profit-taking following stellar gains in previous weeks. Notably, despite last week’s drawdown, Playtech shares are up nearly 30% for the year.
In March, the company released its Q4 earnings, raising its 2026 adjusted EBITDA guidance to at least €195 million, significantly above the analyst consensus of €177 million.
Investors were encouraged by the exceptional performance in North America, where revenue in the US and Canada grew by 126%. Playtech management reassured investors that its growth in the Americas (Mexico and the US) and other regulated markets would mitigate the impact of the UK tax increases.
Light & Wonder Inc (ASX: LNW) -5.29%
Light & Wonder continued its dismal run and fell over 5% last week, extending its YTD decline to 27%. The stock has been quite volatile this year, but in late March, Macquarie added it to its top pick in the Australian gaming sector while assigning a target price of Australian dollars 205.
The brokerage finds LNW stock cheap following the decline and expects a calendar-year net profit of $638 million, significantly higher than the $567 million recorded in 2025.
Major Gaming Industry Developments
India officially enforced the Promotion and Regulation of Online Gaming Rules, 2026, beginning May 1. The new law effectively removes the long-standing legal protection for “games of skill.” It imposes a blanket ban on any online game where money is staked to win money.
Looking at prediction markets, Polymarket’s trading volumes hit $25.7 billion in March. Importantly, the data show that its user base is evolving, with traders moving beyond crypto-native topics and increasingly betting on sports, global politics, and other real-world events. Moreover, traders are returning to the platform more frequently, signaling a shift from speculative one-offs to consistent engagement.
Earnings Reports
MGM Resorts reported mixed Q1 earnings. While the company’s revenues beat estimates and rose to a record high in the quarter, its adjusted EPS fell short of estimates. Specifically, its Las Vegas revenue reached $2.18 billion, marking its first YoY growth since Q3 2024. However, adjusted EBITDAR fell 8% to $749 million as margins were squeezed by higher labor and insurance costs.
Caesars Entertainment also reported mixed results for the March quarter, with revenues beating estimates on strong growth in its digital business. However, the company’s net loss was twice the Street’s estimate.
Red Rock Resorts reported Q1 revenue of $507.32 million, 1.9% higher YoY and broadly in line with estimates. Its EPS, however, fell to $0.73 in the quarter, even as it beat Street estimates.
Evoke also reported last week. While the company’s annual revenue rose by 2%, impairments related to tax increases in the UK led to a loss of £549.1 million ahead of the group’s potential sale.
Looking forward, Accel Entertainment, DraftKings, Wynn Resorts, Codere Online, Corsair Gaming, Playtika Holdings, and Light & Wonder are expected to release their quarterly reports this week.
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Gaming stocks had yet another dismal week, and the Roundhill Sports Betting & iGaming ETF, which invests in a basket of gaming companies, closed nearly flat, underperforming the S&P 500 Index, which rose almost 1% to hit new record highs. BETZ is down 7.7% for the year, even as the S&P 500 is sitting on
The post Gaming Stocks Continue to Underperform in 2026 Even as Markets Hit Record Highs appeared first on CasinoBeats.