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On Wednesday, Citizens JMP highlighted significant growth in the iGaming sector for April, with Caesars (NASDAQ:CZR) Entertainment and FanDuel showing substantial revenue increases. Caesars experienced a 45% rise, while FanDuel and Rush Street both grew by 36%. FanDuel notably expanded its leading market share to 28%, a year-over-year increase of 139 basis points, and now stands 240 basis points above its closest competitor, DraftKings (NASDAQ:DKNG). The sector’s robust growth aligns with broader industry trends, where InvestingPro data shows DraftKings maintaining strong revenue growth of nearly 30% over the last twelve months.
DraftKings also demonstrated positive momentum, as revealed in its first-quarter earnings call, with a reported 14% growth in net gaming revenue (NGR) for the quarter. The analyst pointed out the company’s solid performance despite slightly less favorable conditions for sports betting in April. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, with analysts maintaining a strong buy consensus. InvestingPro subscribers have access to 10+ additional exclusive insights about DraftKings’ financial health and growth prospects.
Fanatics, another player in the market, saw its market share climb month-over-month by 43 basis points to 3%, marking the highest share in the company’s history. The increase from 1% the previous year suggests that Fanatics has been successful in capturing VIP play, particularly in New Jersey, at the expense of rivals such as DraftKings and BetMGM. This shift has resulted in higher cross-sell rates into iGaming for Fanatics.
The report also noted that the states of Connecticut, Michigan, New Jersey, Delaware, and Rhode Island together represent approximately 70% of the iGaming revenue in the United States. This concentration underscores the importance of these markets in the overall iGaming revenue landscape.
The growth in iGaming revenue, which saw a 29% increase in April compared to a 24% increase in the first quarter of 2025, indicates a robust expansion within the online gaming and gaming technology sector. The performance of key companies such as Caesars, FanDuel, and Fanatics reflects the dynamic nature of the market and the shifting competitive landscape. For detailed analysis and comprehensive insights into gaming sector stocks, including exclusive Fair Value calculations and financial health scores, visit InvestingPro, where you’ll find in-depth Pro Research Reports covering 1,400+ top US stocks.
In other recent news, Rush Street Interactive Inc (RSI) reported its Q1 2025 earnings, surpassing analyst expectations with both revenue and earnings per share (EPS) exceeding forecasts. The company posted an EPS of $0.09, surpassing the projected $0.07, and reported revenue of $262.4 million, above the anticipated $258.85 million. This performance marks a 21% year-over-year increase in revenue, driven by a 25% rise in online casino operations and an 11% boost in sports betting. Additionally, RSI’s adjusted EBITDA nearly doubled from the previous year, reaching $33.2 million. The company’s strategic focus on enhancing user experience and expanding its market presence in North America and Latin America has contributed to its strong growth trajectory. Analyst firms have not issued recent upgrades or downgrades for RSI, but the company’s optimistic guidance for the full year 2025 projects revenue between $1.1 billion and $1.8 billion. RSI anticipates adjusted EBITDA to range from $115 million to $135 million, reflecting continued growth and strategic expansion.
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