Third-quarter earnings, prediction markets, U.S. gaming traits — CDC Gaming

Wall Street Bets is a roundup of latest notes from analysts overlaying the playing trade.

Forecasting third-quarter earnings reviews

J. P. Morgan’s Dan Politzer regarded on the upcoming third-quarter earnings reviews:

“For 3Q earnings,” Politzer wrote on October 16, “we are most constructive on Red Rock Resorts, Wynn, and Rush Street Interactive, as we think fundamentals and management commentary will be most positive, and are also upgrading Las Vegas Sands on its recent pullback and our increasingly positive view of Singapore. We remain measured on Las Vegas Strip operators given soft leisure demand for fly-to destinations but believe any reassurance that 4Q/FY26 is tracking as previously expected could be met with sharply upward price movements (short interest remains elevated, with Caesars 16%, MGM 14%).”

Prediction markets tempt patrons

Macquarie’s Chad Beynon checked out how prediction markets are intriguing patrons:

“Online stocks lower creating strong buying opportunities, particularly if you believe sportsbooks can hit structural hold targets during the seasonally high NFL season,” Beynon wrote on October 17. “Online shares are -6% within the final month (vs +0% Standard & Poor 500), attributable principally to prediction market headlines and softer maintain charges in September from NFL video games. However, following a number of discussions with numerous on-line trade professionals at G2E, we reiterate our view that the latest pullback is overdone and ought to be considered as a shopping for alternative, significantly for DraftKings (-18%) and Flutter (-10%), which have led the sell-off.

Gaming traits within the United States

Jefferies’ David Katz on October 19 checked out U.S. gaming traits:

“September 2025 had one less weekend day vs. 2024 but the key holiday for the month, Labor Day, was on Monday, September 1st, meaning the lift from the long weekend was largely realized in August,” Katz wrote. “The -8.5% year-over-year decline in foot site visitors was the third-worst month year-to-date and introduced down the year-over-year common to -5.6%, 10 foundation factors decrease than the primary eight months of the 12 months.

“Still, September regional GGR numbers continued the strong trend we’ve seen since the late spring. Additionally, compared with 2019, volume was 19.5% lower during the month. Still, we anticipate trends will continue to stabilize into year-end, as comps have started to ease vs. prior-year levels. We also argue that the consistent lag vs. 2019 levels evidences the space available for the recent GGR strength to continue. The openings of new properties, including Churchill Downs’ Roseshire in Henrico, Virginia, and Penn Entertainment’s Hollywood Joliet in Illinois should be positive drivers for traffic trends.”