DraftKings’ stock had one of the strongest performances among gaming companies in 2025’s first month, posting a more than 10% gain in January. DraftKings' success, the clear No. 2 online gaming operator by market share behind FanDuel, came as the industry saw a wide range of outcomes to kick off the year.
DraftKings’ big month
DraftKings' strong January comes after its stock finished calendar year 2024 roughly where it began, trading around the $41 mark. The daily fantasy sports pioneer-turned-online sportsbook and iCasino leader worked to turn profitable quarters after investing hundreds of millions of dollars in free bets, ads and other promotions.
Like rival FanDuel, and the rest of the regulated sportsbook industry, DraftKings dealt with an unusually strong Q4 for the American betting public. Customers’ atypical success betting on football led DK (and the other companies) to lower their revenue projections for the quarter and full year.
Focus again turns to DraftKings’ pivot to profitability when full year and fourth-quarter earnings are out later this month. Analysts will also monitor an as-yet-undefined partnership with Delta Airlines that could shake up by the gaming and airline industries.
Major regional casino operators gain
Two of the biggest land-based casino operators on and off the Vegas Strip posted stock gains despite concerns about dwindling hotel room bookings and in-person gambling spend.
Caesars and MGM saw their stocks gain around 4% and 1%, respectively, in January. The positive growth comes even as casino visits declined slightly in 2024 compared to massive jumps in 2022 and 2023.
Some notable gaming stock % increase/decrease between January 2 and opening of regular trading Feb 3:$DKNG 10.4% 🔼$CZR 3.6% 🔼$FLUT 1.5% 🔼$PENN 0.6% 🔼$WYNN (2.2%) 🔽$RSI (2.7%) 🔽$CHDN (8.7%) 🔽$LVS (13.2%) 🔽
— Ryan Butler (@ButlerBets) February 3, 2025
Wynn, the third-largest operator on the Strip, saw its stock dip roughly 2% in January. It doesn’t have the regional property portfolio of either Caesars or MGM.
All land-based casino operators could report further visit declines in Q4 2024 (and Q1 2025) as poor weather snarled transportation and curtailed in-person casino trips.
Rush Street boom slows down
Rush Street Interactive was one of the biggest gaming stock success stories in 2024. The BetRivers operator saw its stock jump more than 170% in the previous calendar year, one of the best returns of any gaming stock.
That achievement, coming from a business with low single-digit national online gaming market share, seemed unsustainable long-term, a reality reflected by a roughly 3% drop to begin 2025. Still, the company’s massive 2024 shows its potential – and the decrease wasn’t as bad as some other gaming corporations in January.
Other notable gaming stocks – January 2025 performance
Penn Entertainment: 0.6% increase- After increasing scrutiny for its online gaming ambitions, the U.S.' largest regional casino owner by total number of managed properties saw a slight uptick in January stock price despite in-person visit headwinds.
Churchill Downs: (8.7%) decrease – The operator of the eponymous horse track and other gaming properties had among the biggest declines of any gaming company.
Las Vegas Sands: (13%) decrease – No longer operating any U.S. casino properties, the company spent most of its American efforts on a Dallas-area casino that may be years away from approval.
