The Roundhill Sports Betting & iGaming ETF (NYSE: BETZ) demonstrated resilience last week, rising nearly 3% even as the broader S&P 500 index faced a downturn. This marks the fourth consecutive week of outperformance for BETZ, aligning its year-to-date returns with those of the major market index. Notably, companies such as Codere Online and Accel Entertainment were among the significant gainers, showcasing the potential strength within the gaming sector despite broader market challenges.
Codere Online (NYSE: CDRO) was the standout performer, surging over 10% last week, making it the only gaming stock in the coverage universe to achieve double-digit gains. Despite no major market-moving news during the week, CDRO continued its upward trajectory from earlier in the month. The company reported a flat net gaming revenue for the quarter, but its adjusted EBITDA nearly doubled to €2.9 million in Q3 2025 from €1.5 million the previous year. Codere maintained its annual revenue and EBITDA guidance, highlighting an “encouraging recent trend” and a re-acceleration of net gaming revenues anticipated for the final quarter of 2025. The company also experienced a noteworthy 39% year-over-year increase in active customers in Mexico, its largest market, positioning it for future growth despite some short-term currency challenges.
Accel Entertainment (NYSE: ACEL) also saw a robust increase, with shares climbing over 7%. This uptick followed the company’s announcement earlier in the month regarding the acquisition of Dynasty Games’ route operation assets, a move expected to positively impact its 2026 earnings. Following this, Citi initiated coverage with an “outperform” rating, while JMP Securities set a bullish target price of $13 for the stock, contributing to investor optimism.
In addition to these gains, Gambling.com (NYSE: GAMB) reported a 6% increase last week. Despite being known for its volatility, GAMB’s performance was noteworthy given its struggles earlier in the year, where it faced significant share price declines stemming from unfavorable shifts in Google’s search algorithm. In Q3 2025, the company reported revenues of $38.98 million, falling short of analyst expectations, which has raised concerns over its future viability amid ongoing adjustments in revenue guidance.
However, not all stocks in the gaming sector benefited from the positive momentum. Century Casinos (NYSE: CNTY) was the biggest loser last week, with shares dropping over 10%, placing it near its 52-week low of $1.30. The company’s recent financial performance has been lackluster, missing key revenue metrics in Q3 with reported revenues of $153.7 million against an expected $163.4 million. Additionally, its net loss for the quarter increased by 30% year-over-year, reaching $10.5 million, further dampening investor sentiment.
Robinhood (NYSE: HOOD) also faced a challenging week, seeing a decline of nearly 9.5%. The tech sector’s ongoing sell-off heavily impacted HOOD shares, compounded by disappointing November trading metrics that revealed a significant month-over-month decline across all trading categories. This has raised investor concerns regarding the sustainability of the company’s transaction-based revenue. However, the company is exploring opportunities in prediction markets, a venture expected to grow rapidly, even amid regulatory scrutiny.
Melco Resorts and Entertainment (NYSE: MLCO) rounded out the list of notable losers, with shares falling nearly 8%. Despite the downturn, there was no specific negative news related to the company, suggesting the decline may have been profit-taking following its performance in the burgeoning Macau gaming market.
Industry dynamics continue to evolve, particularly concerning prediction markets. States like Washington and Louisiana are intensifying opposition to these platforms, complicating the landscape for companies like Robinhood and Betr, which is preparing to launch its own prediction market platform. In response to heightened regulatory scrutiny, several companies, including Kalshi and Robinhood, have formed the Coalition for Prediction Markets, aimed at ensuring safe and transparent access to these markets.
The regulatory environment remains a critical factor for the gaming industry, highlighted by the Indian Supreme Court’s delay in addressing challenges to the country’s gaming ban. Additionally, in the UK, recent tax hikes on gambling have forced companies like William Hill’s parent Evoke plc to consider a strategic review, potentially resulting in asset sales. As the market adapts to these developments, the gaming sector’s resilience and its capacity for growth will be closely monitored in the upcoming weeks.
