Gaming stocks experienced a positive week, with the Roundhill Sports Betting & iGaming ETF increasing by 3.7%, contrasting with the S&P 500 Index's modest gain of under 0.5%. Among the most significant winners were Grandstand and Genius Sports, while Playtika and Corsair Gaming faced substantial declines.
**Major Gainers**
**Grandstand (NYSE: GRSD) +20%**
Grandstand emerged as the top performer in the gaming stock portfolio last week, soaring by 20%. Formerly known as Gambling.com, the company underwent a rebranding last month to reflect its broader diversification beyond affiliate marketing.
The stock rallied following the release of Grandstand's Q2 earnings. While the company's revenue decreased 5% year-over-year to $37.8 million, it maintained its full-year revenue guidance of $165–$170 million and projected adjusted EBITDA of $45–$50 million. This guidance suggests a positive trend in the second half of the year.
Additionally, Grandstand unveiled Rollcard, a high-limit debit card designed for sports betting, casinos, and prediction markets. The company's enterprise sports data services saw a 12% growth, driven by its B2B solution OpticOdds, further solidifying its market position.
**Genius Sports (NYSE: GENI) +10.41%**
Genius Sports saw a 10.41% increase, which helped reduce its year-to-date losses to about 24%. The uptrend followed a favorable market reaction to its Q2 earnings, showing an adjusted EBITDA of $53 million, surpassing the $45 million guidance.
Consequently, Genius raised its annual revenue expectations, now forecasting between $1.005 billion and $1.025 billion, up from the previous $990 million to $1.010 billion range. The adjusted EBITDA guidance also increased to $285 million – $295 million from $270 million – $280 million.
Earlier this month, Genius forged partnerships with prediction market platforms Kalshi and Polymarket. Despite lacking significant announcements last week, the stock's value has doubled over the past month, although it remains down 24% for the year.
**Light & Wonder (ASX: LNW) +9.23%**
Light & Wonder experienced a rise of 9.23% last week, accumulating a 21% increase over the past month, reducing its year-to-date losses to below 14%. This growth follows the positive reception of the company's Q2 earnings report.
The company reported a 2% year-over-year revenue increase to $828 million, and adjusted EBITDA grew by 9% to $383 million. The adjusted free cash flow surged by 50% year-over-year to $156 million, with recurring revenue accounting for 71% of total revenue.
**Biggest Losers**
**Playtika (NYSE: PLTK) -14.63%**
Playtika suffered a 14.63% loss, making it the largest decliner in gaming stocks. Following Q2 earnings that largely met expectations, investor concerns emerged over guidance for the full-year 2026. The company anticipated revenue and adjusted EBITDA at the lower end of previous forecasts, citing weakened consumer confidence driven by inflation.
Moreover, Playtika announced a plan to reduce second-half marketing expenditures for its SuperPlay titles, including Disney Solitaire, by as much as 70%, raising concerns about sustaining recent revenue growth.
Following the earnings report, analysts reacted by lowering the target price for Playtika. Morgan Stanley reduced it from $5 to $4.25, following a similar move by Goldman Sachs.
**Corsair Gaming (NYSE: CRSR) -9.48%**
Corsair Gaming's stock fell nearly 9.5% last week, likely reflecting profit-taking after its recent 35% surge following impressive Q2 earnings. The stock's elevated valuation and significant gains may have motivated this pullback, as it trades above its average target of $12.14.
**Bragg Gaming Group (NYSE: BRAG) -8.93%**
Bragg Gaming saw its stock drop by nearly 9%, compounding its year-to-date loss to 27%. The downturn stemmed from lackluster Q2 results, with revenue at €22.9 million ($26.1 million), a 12% year-over-year decline. The company attributed this drop to customer turnover from legacy contracts in the Netherlands and shifts in Brazil.
The quarterly net loss expanded by 61% to €2.9 million ($3.3 million), largely due to restructuring costs. Following its $9 million acquisition of Drayton International, Bragg withdrew its financial guidance for 2026, citing uncertainty in forecasting.
**Major Gaming Industry Developments**
The regulatory landscape for the burgeoning prediction market sector has been contentious, as exemplified by Baltimore's lawsuit against Kalshi and Polymarket for purported illegal gambling. Mayor Brandon Scott asserted that the city will not permit unlicensed sportsbooks to operate unrestricted.
In Washington state, regulators ordered Kalshi to cease certain prediction markets, in line with Attorney General Nick Brown's comments about enforcing state laws.
Court rulings in Connecticut have characterized parlays as casino gaming, which also challenges Kalshi's argument against classifying its sports markets as gambling.
Meanwhile, the UK government proposed giving local councils greater authority to block new betting shops. This has met with resistance from operators concerned about the legislative impact.
In M&A activity, investor Kenneth Dart made a takeover proposal for Swedish live-casino company Evolution, having previously disclosed a 30% stake.
On the earnings front, Entain reported a 5% increase in H1 Net Gaming Revenue (NGR), although earnings were pressured by recent UK tax hikes. The Rank Group recorded strong full-year results, driven by robust digital performance amid significant tax burdens.
Catena Media's Q2 revenue fell 1%, leading to an 11% dip in adjusted EBITDA and subsequent layoffs as it shifts from an SEO-focused affiliate model.
Bally’s Corporation reported Q2 revenues of $792.23 million, up 20.5% year-over-year, exceeding Wall Street projections. Despite a significant per-share loss of $2.41, the stock responded positively, rising approximately 3.7%.
