Global markets continued to decline last week, with the S&P 500 Index falling by over 2%. The world’s most popular index is down over 9% from its record highs and is nearing correction territory, which, by definition, is a drawdown of 10% from the peak.
Meanwhile, gaming stocks, which outperformed the markets in the initial days of the Iran conflict, are also looking vulnerable, and the Roundhill Sports Betting & iGaming ETF fell 2.3%, extending its year-to-date decline to over 17%.
Light & Wonder and Melco Resorts & Entertainment were among the major gainers last week, while Bally’s Corporation and DraftKings were among the major losers.
Major Gainers
Light & Wonder (ASX: LNW) +11.78%
Light & Wonder bucked the pessimism and saw double-digit gains last week, becoming the only gaming stock in our coverage to achieve this feat. There wasn’t any major market-moving announcement from the company, and the gains came after positive commentary from Macquarie, which added the stock to its top pick in the Australian gaming sector while assigning a target price of Australian dollars 205.
The brokerage finds ASX stock cheap after the fall and is predicting a calendar-year net profit of $638 million, significantly higher than the $567 million recorded in 2025.
Melco Resorts & Entertainment (NYSE: MLCO) +2.93%
Melco stock rose nearly 3% last week, even though it is still down over 25% for the year. Notably, mid-month data suggested that Macau’s average daily gaming revenue in the third week of March was trending higher than the previous week, reaching approximately MOP 721 million. Since Melco has a significant presence in Macau, the stock reacted positively to the update.
Moreover, a proposed U.S. bill targeting certain prediction markets lifted the broader casino sector earlier in the week, boosting casino stocks.
MGM Resorts International (NYSE: MGM) +2.69%
MGM Resorts International’s stock rose over 2% last week and has erased its year-to-date losses, leaving it almost flat for the year. Last week, IAC Inc., which is MGM’s biggest shareholder, disclosed that it bought an additional 1 million shares valued at around $37.2 million. Such large-scale purchases by a major shareholder send a positive sign, particularly at a time when the stock is out of favor with the markets, as MGM and other gaming stocks have been.
Moreover, last week, MGM launched a new “all-inclusive experience” on the Las Vegas Strip. While the specific financial impact is pending, the move to capture more wallet share from tourists through bundled services was viewed as a strategic positive for its Las Vegas operations.
Biggest Losers
Bally’s Corporation (NYSE: BALY) -12.54%
Bally’s Corporation continued its dismal run and fell over 12% last week, extending its year-to-date losses to over 36%. While the broader market meltdown was a key driver of the price action, an adverse report from Truist, which lowered the stock’s target price from $18 to $13, citing “limited liquidity and elevated leverage,” further dampened sentiments.
Notably, Bally’s already has a bloated debt pile, and investors are worried the company may need to raise more equity capital or take on even more expensive debt to finance its Chicago resort and Bronx casino.
DraftKings Inc. (NYSE: DKNG) –12.46%
DraftKings also fell by more than 12% and is now down nearly 40% for the year. The stock had a turbulent week after the NCAA filed an emergency restraining order in the Southern District of Indiana, accusing DraftKings of trademark infringement.
The NCAA claims DraftKings used protected terms like “March Madness,” “Final Four,” and “Elite Eight” without authorization in its betting menus and promotions.
Beyond the potential legal costs, investors are concerned about the revenue impact if DraftKings is forced to scrub its most profitable seasonal campaigns in the middle of the tournament.
To make things worse, Nevada Representative Dina Titus introduced a bill specifically targeting “prediction contracts” that mimic sports betting. The news led to a sell-off in DKNG stock, which has pivoted to the prediction market model.
Bragg Gaming Group (NYSE: BRAG) -12.38%
Bragg Gaming Group also saw a double-digit decline last week. The decline looks like profit-taking following the 40% rise the previous week, which made BRAG the biggest gainer in our coverage that week.
In Q4 2025, Bragg Gaming’s revenues rose just under 2%, but markets were impressed by strong growth in Brazil and 55% rise in recurring revenues from the U.S. market. The company announced the appointment of iGaming veteran Thomas Winter to its Board of Directors. Winter is well-known for founding Golden Nugget Online Gaming and overseeing its $1.5 billion acquisition by DraftKings. His arrival is seen as a major win for the company’s North American expansion strategy.
However, the earnings weren’t as strong as the price action suggested, and its 2025 net loss widened to €8.1 million from €5.1 million in 2024. Moreover, the company’s 2026 revenue guidance implies a year-over-year fall in revenues this year.
Major Gaming Industry Developments
On the M&A side, Spanish gaming giant Codere has reportedly hired investment bankers to advise it on the company’s sale, which could value it at around $2.3 billion.
It was a busy week on the regulatory front for prediction platforms as Reps. Adrian Smith (R-NE) and Nikki Budzinski (D-IL) introduced a bill seeking to bar members of Congress, senior federal officials, and other covered government personnel from trading on prediction markets tied to political events and government action.
On a similar note, Kalshi and Polymarket rushed to implement significant self-regulation on insider trading following the introduction of the bipartisan “Prediction Markets are Gambling Act” by Senators Adam Schiff and John Curtis. However, the self-regulation failed to cut ice with the Senators, with Schiff saying they aren’t “enough.”
Elsewhere, the Public Health Group sued DraftKings, Genius Sports, FanDuel, and the NFL over “addictive” microbetting.
Looking ahead, investors will be closely watching regulatory developments in the prediction market space in the coming weeks, as it is no longer about niche platforms but a jurisdictional battle. The CFTC has been asserting its authority to regulate prediction markets, arguing that states lack the right to do so.
Also, investors should keep an eye on March GGR figures from the Macau Gaming Inspection and Coordination Bureau (DICJ), as their release affects the price action of casino stocks.
We don’t have any major earnings lined up for this week, but the Iran war is something gaming investors would be closely watching as the escalation has led to a broad-based sell-off, including gaming stocks.
