3 Gaming Stocks to Add to Your Portfolio Despite Industry Pressure

Zacks' industry note says the gaming sector is contending with consumer 'wallet fatigue' from inflation and higher rates and an increasingly fragmented regulatory landscape that is lifting compliance costs and compressing margins, even as sports-betting legalization and a Macau recovery provide countervailing growth. Macau gross gaming revenue rose 14.4% year‑over‑year in November to MOP21.09 billion (YTD MOP226.5 billion, +8.6%), while digital sports betting expansion across many U.S. states is sustaining demand. Despite these pockets of strength, Zacks places the industry at rank #178 (bottom 26%), with one‑year price performance of +7.2% versus the S&P 500’s +15.7% and a trailing EV/EBITDA of 18.64 in line with the market, reflecting a weakening earnings outlook. Zacks highlights Las Vegas Sands (Zacks Rank 1; shares +22%; 2026 EPS est. +10.1% to $3.15), Rush Street Interactive (Rank 2; revenue +20% YoY; MAUs +46%; shares +38.3%; 2026 EPS est. +14.3% to $0.48) and Brightstar Lottery (Rank 2; post‑divestiture balance sheet improvement; shares -19.9%; 2026 EPS est. +5% to $0.84) as names to watch.

Analysis

Zacks identifies rising consumer "wallet fatigue"—driven by persistent inflation and higher interest rates—as a primary headwind reducing discretionary spend per casino visit, particularly at regional properties, while a fragmented U.S. regulatory environment for sports betting and iGaming is increasing compliance costs and compressing margins. The industry’s aggregate outlook is weakening in analysts’ models, reflected in a Zacks Industry Rank of #178 (bottom 26%) and the note that analysts are trimming earnings expectations for the group.

Macau shows a meaningful recovery but with volatility: November gross gaming revenue rose 14.4% year‑over‑year to MOP21.09 billion but fell 12.5% sequentially from October, and year‑to‑date GGR is MOP226.5 billion (+8.6% YTD). The industry’s trailing EV/EBITDA is 18.64—in line with the S&P 500—with a three‑year trading range of 14.16–28.46X, while the group has underperformed the S&P (+7.2% vs +15.7% over one year).

Zacks highlights selective names: Las Vegas Sands (Zacks Rank 1; shares +22% YTD; 2026 EPS est. +10.1% to $3.15) benefits from Macau/Singapore travel recovery; Rush Street Interactive (Rank 2; revenue +20% YoY; NA online casino MAUs +46% YoY; shares +38.3%; 2026 EPS est. +14.3% to $0.48) shows accelerating digital metrics; Brightstar Lottery (Rank 2) has a cleaner balance sheet post‑divestiture but its shares are down 19.9%. The combination of selective upside stories and negative aggregate earnings revisions argues for stock selection over broad sector exposure.

Key Decisions for Investors

• Favor selective exposure to well‑capitalized, Macau/Singapore‑exposed operators such as LVS given improving GGR and raised 2026 EPS estimates, but size positions for sequential volatility
• Consider growth exposure to digital sports‑betting names like RSI where revenue and MAU trends are accelerating, while hedging regulatory and customer‑acquisition cost risks
• Avoid broad sector overweights given Zacks Industry Rank #178 and negative aggregate earnings revisions; prioritize stock selection over sector ETFs
• Monitor valuation and leverage closely—the industry’s trailing EV/EBITDA of 18.64 and high debt levels increase downside risk if margins or tax/regulatory costs worsen
• Use near‑term catalysts (monthly Macau GGR, state regulatory developments, quarterly MAUs and spend‑per‑visit metrics) as triggers to add, trim, or hedge positions