Some gambling operators are in a stronger position than others, and that showed in the stock market over the course of 2023.
Many of the PA online casinos and sportsbooks operate in states other than Pennsylvania. Their performance across the board, including the Keystone State, is a determining factor in what stock prices look like.
PlayPennsylvania takes a look at some of the top gambling stocks heading into 2024.
DraftKings ($DKNG) triples stock price in 2023
DraftKings experienced dark times at the end of 2022, when its stock price plummeted to $11.39 on Dec. 30. Because of a strong 2023, the operator has more than tripled its price to $34.83.
DraftKings Sportsbook is available in 21 states, including Pennsylvania, and its online casino is also live in five states.
DraftKings Casino PA has recently emerged as the top operator in the Keystone State, surpassing BetMGM Casino PA. It acquired a 27% national online casino market share in Q2 2023 and has kept a strong grasp on the lead ever since.
In August, DraftKings became the overall market leader in online gambling after reaching a 31% market share across both sports betting and online casinos on a national level.
DraftKings had a strong Q3 2023, according to its earnings report. The operator reported:
- $790 million in Q3 revenue
- Raised revenue guidance to $3.695 billion from $3.5 billion
- Adjusted EBITDA guidance to ($105) million from ($205) million
Robins said in a Q3 press release that DraftKings expects to report approximately $200 million of positive Adjusted EBITDA in Q4 2023.
A strong Q4 should set DraftKings up for more success heading into 2024.
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Flutter Entertainment (PDYPY) stock has risen this year
Flutter Entertainment owns FanDuel, which operates a sportsbook in 21 states and an online casino in five. It was able to raise its stock price from $69.15 in January to a current price of $89.30.
FanDuel supplies both verticals in Pennsylvania and is particularly strong in each. Despite DraftKings becoming the No. 1 operator in terms of market share, FanDuel still leads Pennsylvania in sports betting.
FanDuel Sportsbook PA recorded $384.1 million in November handle, compared to DraftKings Sportsbook PA’s $253.1 million.
For the iGaming side, FanDuel Casino PA also became the No. 2 online casino operator in the market, just behind DraftKings. FanDuel and Stardust Casino PA, in partnership with Valley Forge Casino, produced an all-time high of $51 million in revenue last month.
FanDuel clearly has a strong product not only in Pennsylvania, but throughout the world, too.
In a Q3 2023 press release, Flutter CEO, Peter Jackson, said:
“We are particularly pleased by the great progress we are making in the US. We are the first online operator to achieve structural profitability, and the strong ramp in EBITDA during 2023 will continue into 2024 and beyond, as our profit margins expand materially.”
Flutter appears to be in good shape, especially as FanDuel leads the charge.
Caesars Entertainment ($CZR) stock remains mostly stagnant
Caesars Entertainment experienced the highest of highs and lowest of lows this year. The company’s stock price opened the year at $42.26, but is just $47.32 at the end of 2023. The stock reached as high as $59.38 on July 26 and as low as $38.54 on Oct. 25.
Caesars Sportsbook is available in 20 states, with its online casino live in four. Both platforms are available in Pennsylvania.
The lowest point of the year for Caesars occurred in September when the company reportedly paid tens of millions of dollars in ransom money to fight off a cyberattack. Caesars’ stock price dipped as low as $38.54 from $53.57 on Sept. 14.
Caesars ultimately recovered and announced a bunch of great news throughout 2023. Perhaps the biggest is the launch of a standalone Caesars Casino PA app. The new platform is to appeal to the predominant casino player and increase online slot revenue.
In addition to the new digital advancements, Caesars appears to be in a good place financially, too. The company announced an adjusted EBITDA profit of $2 million in Q3 vs. a $38 million loss in Q3 2022.
PENN Entertainment ($PENN) stock down around 6%
It’s been a turbulent year for PENN Entertainment in 2023. There have been radical changes within the gaming industry, which included a split from Barstool to form a new partnership with ESPN in August. PENN Entertainment’s stock opened the year at $29.27 and is currently at $24.90.
PENN Entertainment, also based in Pennsylvania, has a large presence within the state. Its performance relies heavily on its retail Hollywood properties, which include:
- Penn National Race Course
- The Meadows
- Morgantown
- York
In addition to its land-based casinos, PENN Entertainment operates ESPN Bet in PA, which recently launched in mid-November, along with in 17 other states. In November alone, ESPN Bet lost $7.8 million in Pennsylvania revenue thanks to lots of promo spend.
The company reported a loss of $725.1 million in Q3 2023. With implementing ESPN Bet in several states, it could take PENN Entertainment a while before it records a positive month.
MGM Resorts ($MGM) stock price increases nearly 28%
BetMGM has a massive, worldwide business that includes much more than its online vertical. The company also relies heavily on its properties all over the world, including Las Vegas, China and Macau. There are no BetMGM facilities in Pennsylvania.
Despite the company experiencing slight dips in certain categories, its stock price is up close to 28% year over year. It opened 2023 at $35.54 and currently sits at $43.92.
BetMGM’s Q3 earnings release provides a snapshot of how the quarter went:
“Consolidated net revenues of $4.0 billion, an increase of 16% compared to the prior year quarter, due primarily to an increase in revenue at MGM China due to the removal of COVID-19 related entry restrictions in Macau, partially offset by the decrease in revenues at our Las Vegas Strip Resorts and Regional Operations due to the dispositions of The Mirage and Gold Strike Tunica as well as the cybersecurity issue in September 2023.”
BetMGM’s online sector has taken a bit of a hit, too. It relinquished market share this year, which triggered CEO Adam Greenblatt to call 2024 an “investment year.”
BetMGM partnered with Angstrom Sports to bolster the operator’s sports betting product, which would help cross-sell strategies into the online casino. The operator has a sportsbook in 23 states and an online casino in four.
Perhaps a rebound on the digital side could help BetMGM’s stock price grow even more in 2024.
