iGaming stocks rose 12% in June, triple the S&P’s 4% gain. Analyst Chad Beynon attributes the growth to high sportsbook hold rates, NBA playoffs exposure, and improving sentiment despite regulatory pressure.
The growth rate of igaming stocks is three times faster than that of the S&P Index. In an investor note published on June 26, analyst Chad Beynon of Macquarie Equity Research highlighted that as one of the key conclusions.
Beyonon noted that the S&P 500 had gained 4% over the last four weeks, whereas the stocks of igaming businesses had increased by 12%. He said that this demonstrated that “despite regulatory headwinds, the market outlook is improving.”
Beyonon observed that a time of significant hold percentages among sports betting operators, particularly in June, correlated with the rise in share prices. According to Macquarie, hold was heading near 13% in the first two weeks of the month.
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Beyonon calculated an 11% hold percentage during the second quarter based on these numbers. It was anticipated that FanDuel, along with its publicly traded parent company Flutter Entertainment, and DraftKings would see record rates. Caesars Entertainment, BetMGM, and Rush Street Interactive were considered additional beneficiaries.
Beyonon commented, “As such, we expect most B2C Online segments to outperform.” Due to revenue-sharing arrangements in the US and extensive NBA exposure during the league playoffs, he continued, SportRadar may also surpass projections.
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