Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry.
Flutter outlook strong
Barry Jonas of Truist Securities examined Flutter after its recent investor’s call.
“Flutter’s Q2 EBITDA came in +5% ahead of our recently raised estimate and +17% ahead of the Street,” Jonas wrote. “Well-known favorable U.S. sports results drove the beat, and Flutter increased 2025 EBITDA guidance +4% given high hold, Missouri timing, and the Boyd market access revision offsetting higher taxes,” Jonas wrote. “International was strong as well aided by the benefit of Snai & NSX, with the segment guide reiterated. We reiterate our Buy rating given a wide runway for sustainable global growth.”
Golden Entertainment better than expected
Texas Capital Securities’ David Bain looked at Golden Entertainment on August 8.
“Following an in-line 2Q25, versus recently reduced estimates, our calendar year 25E/calendar year 26E EBITDA forecast is largely unchanged,” wrote Bain. “While known (Las Vegas) Strip summer softness impacted the Strat, 2Q25 property Strip EBITDA growth performance was better than other reporting mid-to-low tier Strip operations.
“Further, Golden’s Nevada locals 2Q EBITDA was better-than-expected, and EBITDA growth outperformed Las Vegas local reporting peers. Golden repurchased $15 million of stock in 2Q amounting to the elimination of 17% of its freely tradable float since 2024. We see continued buybacks, combining with its 4% dividend yield as “paying investors to wait” for a potential upcoming valuation re-rating upon upcoming full company EBITDA growth inflection beginning in 4Q25E, in our view. Maintain buy.”
DraftKings, Flutter post-investors calls
David Katz of Jefferies looked at DraftKings and Flutter after their respective investors’ calls.
“Both had strong quarters on online sports betting hold margins, with DraftKings holding its $800-900 million EBITDA guide, including higher taxes and Missouri launch, and Flutter guiding EBITDA higher by 4% at the midpoint and above consensus by 1%,” Katz wrote August 10. “However, both shares reacted negatively to the conference calls, with DraftKings -1.9% and Flutter -7.7% for the week. Our perspective is that concerns persist about the ability to sustain through the forthcoming football season – margins were historically volatile last year. We think the long-term equity stories remain intact, with total addressable realization, product advancement and earnings/CF growth over time.”
Inspired Entertainment revenue/EBITDA estimates raised
B Riley Securities’ Josh Nichols examined Inspired Entertainment August 6.
“Buy-rated Inspired Entertainment reported 2Q25 results on Wednesday,” wrote Nichols. “Revenue/EBITDA of $80 million/$28 million beat consensus of $75 million/$25 million driven by interactive’s eighth consecutive quarter of 40%+ EBITDA growth and better-than-feared virtual sports performance. … Following the beat, we raise our 2025 revenue/EBITDA estimates from $300 million/$104 million to $310 million/$110 million as the business mix gradually shifts toward higher-margin digital segments. The combination of interactive momentum (FanDuel Hybrid Dealer launching September), virtual sports stabilization (Brazil scaling, product innovations coming), and structural margin improvement from the Holiday Parks exit reinforces our conviction in Inspired Entertainment’s transformation story.”
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