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State of Play’s TL;DR
- Investor interest in gaming stocks has picked up after a third-quarter pullback, according to Wall Street analysts.
- BetMGM reported 7% revenue growth and more than doubled EBITDA in its latest quarterly update.
Wall Street analysts say investors are circling beaten-down gaming stocks again, with PENN Entertainment, MGM, Las Vegas Sands, and Boyd Gaming among the names cited as potential trading opportunities.
At the same time, BetMGM posted a stronger third quarter, reporting revenue growth and a sharp jump in EBITDA while reiterating full-year guidance.
A CDC Gaming roundup of recent analyst notes showed a more constructive tone around gambling equities after a rough third quarter. J.P. Morgan analyst Dan Politzer said his gaming coverage saw a 23% average pullback in 3Q26, followed by a “modest uptick” in inbound interest from investors. He said Wynn, DraftKings, and Flutter drew the most attention.
PENN and MGM mentioned in low-valuation gaming trade ideas
Jefferies analyst David Katz said the most common investor questions centered on whether gaming stocks at historically low valuations were worth buying. He highlighted Las Vegas Sands, MGM, Boyd, and PENN Entertainment as leveraged names and underperformers that looked attractive for a long trade.
According to Katz, those companies were trading at roughly 5.5x to 6.5x EBITDA, which he described as historical low valuation levels. He added that some buy-side trading had already appeared in Las Vegas Sands and Boyd during the week.
Katz also said he expects valuations to normalize, but framed the group more as short-term oversold trades than long-term fundamental growth or value calls.
BetMGM reports revenue and EBITDA growth in 3Q26
Macquarie analyst Chad Beynon said BetMGM delivered a “solid 3Q26 update” that reinforced its value-over-volume strategy despite a highly competitive market.
BetMGM reported net revenue of $710 million, up 7% year over year. Within that, BetMGM Online Casino revenue rose 6% and online sports betting revenue increased 7%.
EBITDA more than doubled to $86 million, up 112% from a year earlier.
Management reiterated FY26 guidance and said it remains on track toward the lower end of its $2.9 billion to $3.1 billion revenue range and $300 million to $350 million in EBITDA. Beynon said BetMGM also remained confident in its longer-term path to $500 million in EBITDA, with business trends staying healthy through September and into October.
For online gambling watchers, the update offers two signals at once: renewed investor attention on depressed gaming names, and continued evidence that BetMGM is improving profitability while still growing its online casino and online sports betting business.
Based on reporting by Rege Behe for CDC Gaming.
