Stock market gains following the 2024 U.S. elections have all been erased in the four months since as investors and corporate America try to gauge the country’s economic direction. This is especially acute for gaming companies that struggled in the past few weeks from actions both in and outside Washington D.C.
Uncertain directions around tariffs and the scope of the federal government are driving factors leading investors to sell stocks in recent weeks. Most major U.S.-heavy gaming businesses saw their prices decline during that same time.
More than two months into the legislative sessions in most states, there are few state-level legislative victories gaming stakeholders can point to.
This comes as California and Texas, the nation’s two largest states, haven’t even seriously attempted sports betting legalization in their respective legislative sessions.
Not a stretch to say Texas' long-shot bid to legalize sports betting & casino gaming this year has gone worse than anyone could have imagined. The owners of the NBA team leading the casino charge traded their best player and now even the existing lottery is being scrutinized.
— Ryan Butler (@ButlerBets) March 4, 2025
Online casino legalization bills, long a more difficult political endeavor than sports betting, again gained little traction in the handful of states where these measures were even considered. Digital slots and table games generate far higher operator profit margins than sportsbooks, denying them a major potential revenue source as they remain unregulated in most states.
As industry legalization priorities stall, gaming stakeholders have to play defense in statehouses across the country.
Most of these bills also face long statehouse odds. Their presence underscores a difficult political environment at the state level to go along with headwinds from the federal government.
Company breakdown
These macro-level factors have influenced many major gaming companies, with plenty facing individual challenges.
FanDuel: The U.S. iGaming and sports market leader posted solid numbers in its most recent revenue reports but is the company with the most to lose if the Trump Administration continues its friendly posture toward sports prediction markets.
DraftKings: The sportsbook's $750 million purchase of lottery courier Jackpocket could be in jeopardy after it had to stop operating in Texas, potentially leading other states to take similar actions.
PENN Entertainment: PENN’s multi-billion-dollar deal for ESPN BET looks rockier than ever after the business reported it still had low single-digit market share after its first full year of operation, sparking renewed speculation that it could end its deal with Disney in 2026.
Caesars: Caesars, along with its Nevada-based rival MGM, face dwindling attendance at their respective Las Vegas properties, trends state lawmakers fear tariffs and federal government cuts could accelerate.
Rush Street Interactive: The BetRivers parent was one of the gaming industry’s biggest stock gainers in 2024, but lost roughly 25% of its overall stock price since the start of 2025. The company also remains far behind all the above online gaming operators in revenue and market share.
Las Vegas Sands: One of the few major gaming operators to post stock price gains in the last 30 days, the internationally-focused business sees little progress in its long sought after Dallas-area resort casino.
Bottom Line
Every industry experiences rough stretches. Even during nationwide shutdowns from the COVID-19 pandemic, U.S. gaming operators weathered the storm and still generated billions of dollars in annual revenue.
