The Roundhill Sports Betting & iGaming ETF (NYSE: BETZ) gained 6.1% last week and outperformed the S&P 500 Index, which rose 3.4%.
While the world’s most popular index hit record highs last week amid easing trade and geopolitical tensions, BETZ is outperforming it by a wide margin in 2025.
Super Group, the parent company of Betway sportsbook, which exited the US last year, has thrived in Europe and continued its strong performance since the beginning of the year.
It rose 14.6% last week. The previous week, Super Group was the top gainer among gaming stocks in our coverage universe and has now extended its year-to-date gains to 78%.
The company did not make a significant announcement last week. However, earlier this month, BTIG analyst Clark Lampen raised the stock’s target price to $11 from $9 while maintaining his “buy” rating.
While analysts have gradually raised the stock’s target price over the last two months, among others in anticipation of strong EBITDA margins in key European markets, the stock now trades just 6.6% below its mean target price of $11.83. That signals limited upside.
With gains of 12.5% last week, Melco Resorts & Entertainment was among the other major gaming gainers. The company has enjoyed solid recent months, highlighted by Macau’s strong May results. The stock has increased by 15% over the past month.
However, the stock was trading lower in the US premarket after Wall Street Zen downgraded it from a “buy” to a “hold” over the weekend. The brokerage set a $7.1 target price on Melco Resorts, which is below the mean target price of $6.73.
Melco’s earnings could continue to grow this week as well, as the company has announced that its City of Dreams Sri Lanka casino resort will open in August.
Light & Wonder stock gained 12.3% last week, which helped it bridge its year-to-date losses and turn positive for the year. The stock jumped 10% on Wednesday following a favorable court ruling in its legal dispute with Aristocrat Leisure Limited.
The Nevada district court hearing the case ruled that Light & Wonder wasn’t obligated to disclose the math models for all the games that Aristocrat was seeking.
While LNW stock rallied after the ruling, analysts don’t see the court’s decree improving the company’s financial situation.
Still, Jeffries analysts have a target price of $116, which is approximately 20% above the current price. Meanwhile, Macquarie has the stock as “outperform” with a $120 target, 25% higher than the current price.
Codere Online, the digital arm of the Spanish-based Codere Group, climbed 10% last week. The company was facing delisting by NASDAQ, its second such warning. However, it managed to file its annual report just in time to avoid the delisting.
The stock was having a lackluster week but rose 9.5% on Friday. In the past month, it has grown 15%. The company’s footprint in Latin America and Mexico could help it continue to grow.
Still, currencies across the region have weakened by almost 10% this year, showcasing potential volatility in the share’s price.
Genius Sports gained 8% last week and was among the major gainers. The stock has been quite volatile over the past few weeks. While it lost 8% in the preceding week, it was among the major gainers in the week before amid optimism over the company’s expanded partnership with the NFL.
Esports Entertainment Group was the top loser among gaming stocks, falling 16.2% over the past week. Following last week’s drawdown, the stock now trades approximately 62% below its 52-week high.
The stock has been quite volatile this year. The company is in severe financial distress, experiencing perennial losses and mounting debt (over $100 million annualized). That is making markets wary about the company’s ability to stay afloat.
However, there have been intermittent rallies in between. The stock was among the top gainers in the previous week as a section of the market saw value in this beaten-down name.
Last year, the company voluntarily delisted from the Nasdaq and now trades on the OTC market. It also ceased publicly reporting its earnings, so we don’t get its updated financials, making the stock a risky proposition.
Century Casinos ended its growth streak over the previous few weeks, losing nearly 3% last week. The stock has shed over a quarter of its market cap this year, and it’s down 32%. Compared to its 52-week high, it has declined by 58%.
Some analysts viewed the stock as undervalued, driving the growth over the previous few weeks. Still, the company is facing declining revenues, widening losses, and increased cash burn.
In the first quarter of 2025, it missed both top-line and bottom-line estimates. It is also saddled with a burgeoning debt pile that far exceeds its market capitalization.
Huya also closed in the red last week, continuing its dismal run from the previous week.
The stock has been a long-term underperformer and trades at just about one-tenth of its all-time high. The tech crackdown in China, coupled with a structural slowdown in the world’s second-biggest economy, has taken a toll on the stock.
Moreover, Huya faces intense competition from Chinese rivals. It has also posted GAAP losses for three consecutive years, which has made the market apprehensive about the company’s future.
Penn Entertainment also rose 7% last week amid positive commentary from analysts. That helped the share to climb over 20% in the past month. Still, year-to-date, Penn’s stock is down over 7%.
Earlier Monday, JPMorgan initiated coverage on the gaming sector. “The Gaming sector is rife with risks, but potential rewards are high,” noted analysts led by Daniel Politzer in their note.
The leading brokerage named three top picks in the report. It assigned Penn Entertainment an “outperform” rating, with a target price of $24, approximately 35% higher than the current price of $17.89.
It expects ESPN Bet’s losses, which have been a point of contention with activist investor HG Vora, to narrow now that the investor has two directors on the company’s board.
The brokerage is also bullish on Red Rock Resorts and highlighted improved EBITDA visibility over the next two years.
Furthermore, it assigned Caesars Entertainment an overweight rating with a target price of $47.65, which is 65% higher than the current price and close to its 52-week high.
Citizens JMP also upgraded Penn Entertainment to a “buy” rating on Thursday and assigned a target price of $24. The company sees a turnaround on the horizon, particularly for its loss-making sports betting venture.
However, the brokerage downgraded MGM stock from an “overweight” to “equal weight,” citing an expected stagnation in the Las Vegas market.
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