3 Gaming Stocks to Add to Your Portfolio Despite Industry Pressure

December 10, 2025 — 09:05 am EST Written by Harendra Ray for Zacks-> Industry DescriptionThe Zacks Gaming industry includes companies that own and operate integrated casinos, hotels and entertainment resorts. Some industry players also deliver technology products and services across the lotteries, electronic gaming machines, sports betting and interactive gaming markets. Some firms develop and operate gaming establishments and associated lodging, restaurants, horse racing and entertainment amenities. Many companies are involved in developing and selling gaming applications. E-sports or sporting events or tournament services, content management systems, video software, mobile applications and e-sports data platform solutions are provided as well.Key Themes Shaping the Gaming IndustryConsumer Spending Pressure and Wallet Fatigue: The U.S. gaming industry is facing mounting pressure from a stretched consumer. Persistent inflation, higher interest rates and rising everyday expenses have reduced discretionary spending, particularly among lower- and middle-income customers. Casino visitation may remain steady, but spending per visit is becoming more conservative. Players are prioritizing essential entertainment and cutting back on higher-margin activities such as premium table games, slots with higher denominations and extended resort stays. This “wallet fatigue” is especially visible in regional casinos, where gaming spend is closely tied to local economic conditions and paycheck-to-paycheck consumers.Regulatory Complexity and Higher Compliance Costs: As sports betting and iGaming expand across the United States, operators are navigating an increasingly fragmented regulatory landscape. Each state imposes its own licensing rules, tax rates, promotional restrictions and compliance requirements. High gaming taxes in certain jurisdictions are compressing margins, while tighter controls on advertising and responsible gaming are raising operating costs. For newer markets, heavy upfront investments combined with slower-than-expected profitability timelines are weighing on returns, making expansion less financially attractive despite long-term demand potential.Macau Gaming Revenues Rise as Mass Market Momentum Holds: Macau’s casino industry delivered a solid performance in November, with gross gaming revenues climbing 14.4% year over year to about MOP21.09 billion ($2.63 billion), underscoring the sector’s steady recovery. While revenues dipped 12.5% from October’s powerful showing, the best month since early 2020, analysts note that underlying demand remains healthy, particularly in the mass-market segment. According to industry observers, resilient visitation and consistent play helped sustain growth despite the sequential slowdown. Cumulatively, Macau’s casinos have generated roughly MOP226.5 billion so far this year, up 8.6% from the same period last year, keeping the market on track with the government’s longer-term outlook, which projects annual GGR of MOP236 billion by 2026.Sports Betting Acts as Major Driver: The legalization of sports betting in Delaware, Mississippi, New Jersey, New Mexico, West Virginia, Pennsylvania, Rhode Island, Montana, Indiana, Tennessee, Illinois and New Hampshire has been driving growth for a while. Bettors can place wagers via digital platforms in Connecticut, Kentucky, Michigan, Massachusetts, Maryland, Minnesota, Missouri, Kansas, Louisiana, Oklahoma, South Carolina, California, Oregon, Arizona, Montana, Colorado and others. Some popular gaming applications include DraftKings, Barstool, FanDuel, BetMGM, BetRivers, Fox Bet and BetMonarch.Zacks Industry Rank Indicates Dull ProspectsThe Zacks Gaming industry is grouped within the broader Zacks Consumer Discretionary sector. Carrying a Zacks Industry Rank #178 places it in the bottom 26% of more than 243 Zacks industries.The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential.We will present a few gaming stocks that you can add to your investment portfolio, given their strong fundamentals. However, it is worth looking at the industry’s shareholder returns and current valuation first.Industry Underperforms the S&P 500The Zacks Gaming industry has underperformed the S&P 500 Index and outperformed the broader Zacks Consumer Discretionary sector in the past year.The industry has risen 7.2% over this period compared with the S&P 500 Index’s growth of 15.7%. In the same time frame, the sector has declined 3.4%.Gaming Industry's Valuation Since gaming companies are debt-laden, valuing the same based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio makes sense. The industry currently has a trailing 12-month EV/EBITDA ratio of 18.64, in line with the S&P 500.Over the past three years, the industry has traded as high as 28.46X and as low as 14.16X, with a median of 18.54X, as the chart below shows.3 Gaming Stocks to WatchLas Vegas Sands: The company is benefiting from strong travel demand and improved operating conditions in Macao and Singapore. Management highlighted that Marina Bay Sands remains in a powerful upswing, benefiting from high-value tourism, a fully upgraded suite product and investments in service, amenities and targeted customer development.This Zacks Rank #1 (Strong Buy) player’s shares have gained 22% in the past year. LVS’ 2026 earnings estimates have increased 10.1% to $3.15 in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rush Street Interactive: RSI stock’s momentum is supported by a combination of strong fundamentals and accelerating player trends. The company posted record revenues, up 20% year over year, marking its tenth consecutive quarter of sequential growth, clear evidence of sustained operating strength. Player metrics also continue to impress, with North American online casino MAUs surging 46% year over year, demonstrating expanding scale and deeper engagement.

This Zacks Rank #2 (Buy) player’s shares have gained 38.3% in the past year. RSI’s 2026 earnings estimates have increased 14.3% to 48 cents in the past 60 days.Brightstar Lottery: The company is benefiting from a sharper strategic focus after completing the IGT Gaming divestiture, which strengthens its balance sheet and supports shareholder returns. In addition, accelerating same-store sales across regions and a stronger organic growth outlook underpin confidence in its long-term value creation.This Zacks Rank #2 company’s shares have declined 19.9% in the past year. BRSL’s 2026 earnings estimates have increased 5% to 84 cents in the past 60 days. Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational. From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportLas Vegas Sands Corp. (LVS) : Free Stock Analysis ReportRush Street Interactive, Inc. (RSI) : Free Stock Analysis ReportBrightstar Lottery (BRSL) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.