Things don’t seem to be getting any better for gaming stocks, which had yet another dismal week. The Roundhill Sports Betting & iGaming ETF, which invests in a basket of gaming companies, fell 3.3% even as the tech rally lifted the Nasdaq and S&P 500 Index to new record highs last week.
Corsair Gaming and Gambling.com were among the major gainers last week, while Skillz and Churchill Downs were among the major losers.
Major Gainers
Corsair Gaming (NYSE: CRSR) +13.22%
Corsair Gaming continued its good run, posting the biggest gain in our coverage of gaming stocks last week, up over 13%. The stock has looked strong in recent weeks and is up more than 52% over the last three months. Last week’s gains could be attributed to the Q1 2026 earnings release, in which it beat on both the top and bottom lines.
It also maintained its annual guidance, expecting 2026 revenues to be between $335 million and $365 million and adjusted EBITDA to be between $100 million and $115 million.
Corsair previously announced a $50 million share buyback authorization, and in the Q1 earnings release, it said it has repurchased $5 million in shares under the authorization. The authorization, which is Corsair’s first ever, represents almost 6% of the company’s outstanding shares at current prices.
Gambling.com (NYSE: GAMB) +11.91%
Gambling.com stock rose almost 12% last week, which helped it narrow its YTD losses to 17.4%. The stock made it to the top gainers list for the second consecutive week, despite no major company-specific news.
Last month, GAMB announced a leadership change. Kevin McCrystle will take over as the CEO later this month following the annual general meeting (AGM). Investors are optimistic that the new leadership will provide more clarity on how the company is navigating Google’s SEO changes, which had previously weighed on the stock.
DraftKings (NYSE: DKNG) +10.96%
DraftKings also saw double-digit gains last week, a welcome break for investors, as the stock has looked weak in recent months. Despite last week’s rally, it is down over 25% for the year. Last week’s gains came after DraftKings reported an impressive set of numbers for the March quarter.
Its Q1 revenues rose 17% to $1.65 billion. The management attributed strong sales growth to “efficient customer acquisition over the past year and continued healthy customer engagement, as well as higher Sportsbook net revenue margin.”
The company saw a structural improvement in its Sportsbook net revenue margin, which rose to 7.8% (up from 6.4% last year). This was largely due to a higher parlay mix, in which bettors placed more complex, higher-margin bets.
Notably, DraftKings has been aggressively pivoting to prediction markets, and during the Q1 earnings call, CEO Jason Robins termed prediction markets, particularly in sports, as its “strategic priority.” He noted that in April, DKNG’s annualized prediction of consumer volume surpassed $1 billion.
Following the earnings release, BTIG Research raised DKNG’s target price from $28 to $30 while maintaining its “Buy” rating.
Major Losers
Skillz (NYSE: SKLZ) -12.92%
Skillz stock fell nearly 13% last week. Notably, the stock soared in late April after it scored a significant legal victory in a false-advertising lawsuit against rival Papaya Gaming. Skillz accused Papaya of deceiving players by using bots in matches advertised as human vs. human.
A Manhattan federal jury found Papaya Gaming liable for false advertising and awarded Skillz $420 million in damages. The jury also suggested that Skillz might be entitled to $652 million in “disgorgement” (the profits Papaya made from the practice). A judge is expected to rule on this additional amount in June 2026.
However, the stock has been slipping from its April highs in part due to profit-taking. Markets are concerned that Papaya might appeal the jury’s decision. Moreover, the company does not have the balance sheet strength to pay that hefty amount to Skillz.
Churchill Downs (NYSE: CHDN) -10.66%
With a double-digit decline last week, Churchill Downs also ranked among the week’s top losers. Last week’s decline is largely attributed to the typical “sell the news” reaction following the 152nd Kentucky Derby and specific wagering data that missed some expectations.
Moreover, on Thursday, CHDN saw a massive 640% spike in put option volume compared to its daily average. This surge in bearish bets signaled that traders were hedging for a continued pullback, adding downward pressure on the share price.
Accel Entertainment (NYSE: ACEL) -6.44%
Accel Entertainment stock fell by more than 6% last week, erasing nearly all of its 2026 gains. The primary driver for the sell-off was the Q1 earnings report. While the company beat on revenues, its profits trailed estimates.
During the earnings call, management emphasized a shift from being a “logistics business” to a “gaming and hospitality business.” While this is a long-term strategic move to drive higher value, such transformations often involve higher initial capital expenditures and operational shifts.
Investors reacted cautiously to the increased spending required for this transformation, especially as the company integrates new acquisitions and expands into markets like Nebraska and Georgia.
Major Gaming Industry Developments
Last week, prediction market platform Kalshi announced a massive $1 billion Series F funding round, valuing the company at a staggering $22 billion. This valuation now rivals industry giants like Flutter and DraftKings, signaling massive institutional belief in event-based trading.
Meanwhile, in what could be another legal worry for prediction platforms, Minnesota is moving closer ban prediction markets and sweepstakes casinos.
The prediction industry is currently in a tug-of-war between explosive growth and intense regulatory pushback. There has been a turf war between states and the Commodity Futures Trading Commission (CFTC) over the regulation of prediction markets.
Incidentally, the CFTC sued Connecticut, Arizona, and Illinois as these states had sent “cease and desist” orders to platforms like Kalshi and Polymarket, claiming they constitute illegal gambling. The CFTC has been asserting its authority to regulate prediction markets, arguing that states lack the right to do so.
Other Major Earnings Last Week
Light & Wonder released its Q1 earnings last week. While its revenues rose 2% YoY during the quarter, its profits plunged 27% due to the legal reserve contingency. Moreover, revenue for the SciPlay segment (social gaming) fell 7% to $187 million. Although margins in this segment improved, the revenue decline signaled a slowdown in a previously high-growth area, which worried some analysts.
Wynn Resorts reported better-than-expected revenues and profits in the March quarter, but its earnings report failed to cut ice with markets. Notably, its consolidated adjusted property EBITDAR margins compressed to 30.3%, which spooked investors. Management noted that wage pressures and incremental staffing for new outlets, such as Zero Bond and Pisces, drove operating expenses up by nearly 7%.
We are now towards the end of this earnings season, but next week, Sea Limited, Huya, Gambling.com, Golden Entertainment, Skillz, and Bragg Gaming Group are scheduled to report their quarterly results.
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