Gaming Stock Outlook: Huya and Monarch Lead Weekly Gains, Golden and Bally’s Hit Hard

Gaming stocks ended the week with mixed performance, as the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ) slightly lagged the broader S&P 500 Index.

Huya and Monarch Casino & Resort stood out as the week’s success stories, posting double-digit gains. However, others had a dismal week, notably including Golden Entertainment and Bally’s Corporation.

The Top Gainers

Huya Soars on Chinese Tech Rebound and Esports Cup Rights

With gains of nearly 31%, Huya was the best-performing gaming stock in our coverage universe. The rise came amid the broad-based rally in Chinese tech shares after Nvidia disclosed that it would be allowed to resume exports of H20 chips to China.

Additional bullish sentiment came from reports that Huya has obtained broadcasting rights for the 2025 Esports World Cup in Riyadh, Saudi Arabia.

While Huya has turned positive for the year after last week’s rally, it has been a long-term underperformer, trading at just about one-tenth of its all-time high. It has also posted GAAP losses for three consecutive years, which has made the market apprehensive about the company’s future.

The tech crackdown in China, intense pressure from competitors, and a structural slowdown in the world’s second-biggest economy have taken a toll on the stock.

Huya paid a sizable dividend of $1.47 on July 1 as part of its planned $400 million capital return plan. However, the payout has done little to offset its long-term underperformance.

Monarch Casinos Surge After Strong Q2

Monarch Casino & Resort gained 21.4% last week after delivering record Q2 2025 earnings. The company reported a 6.8% year-over-year increase in revenue, a 19.1% rise in net income, and a 21% increase in diluted EPS.

Markets responded positively, prompting Wells Fargo to upgrade Monarch from an “underweight” to an “equal weight” rating, while raising its target price by $6 to $89.

Truist and Stifel Nicholas also raised their respective target prices following the earnings report. However, Monarch trades above its mean target price, indicating that analysts view the stock as overvalued.

Betr’s Gains on Improved PointsBet Offer

Australia-based Betr Entertainment was among the other major gainers, with its shares rising 15% last week.

The gains could be attributed to Betr’s revised official bid to acquire PointsBet, intensifying the months-long acquisition bidding war with Japanese tech firm MIXI.

Betr claims that its stock offer—sweetened by a conditional repurchase matching MIXI’s cash offer—is better than MIXI’s all-cash proposal.

In a statement, Betr called the offer a catalyst for long-term growth:

“This is just the start of the value creation journey we envisage for Betr and PointsBet Shareholders for the Combined Business. Significantly, in addition to this, PointsBet Shareholders can benefit from the additional longer-term value upside and potential re-rating from the Betr management team’s unparalleled track record of success.”

Sea Limited Rallies on Tech Tailwinds

Tech conglomerate Sea Limited, parent of gaming studio Garena, rose 13.7% last week. The gains are primarily driven by broader enthusiasm in Asian tech following the easing of concerns around US-China chip exports.

Sea’s stock has had a stellar 2025, with a 59% YTD gain. That pushes it 9% above its mean consensus target price. Garena’s Free Fire remains a key revenue driver, but investors are bullish on the conglomerate’s e-commerce and fintech segments.

Top Losers

Golden Entertainment Slides on Downgrade, Weak Outlook

After posting 5% growth the previous week, Golden Entertainment led the losers. The stock lost all its gains and then some, plunging 11.3% last week. That puts it into negative territory for the year to date.

Most of the losses came on Wednesday. Golden Entertainment shares fell 7.9% after Truist downgraded the stock from a “buy” to “hold” and slashed the target price by $2 to $34. The brokerage similarly reduced the company’s 2025 EBITDA estimates and expects it to contract by 4% this year.

Truist valued Golden Entertainment at 7x its 2026 EV-to-EBITDA, well below the 9.3x at which the stock currently trades. That ratio was just 2.4x one year ago.

Bally’s Tumbles After NYC Council Rejects Bronx Casino

Bally’s Corporation lost 10.6% last week following a major regulatory setback in New York. The New York City Council rejected the rezoning application for Bally’s proposed $4 billion Bronx casino, which all but ended its bid for a gaming license.

The company had planned to redevelop the former Trump Golf Links at Ferry Point, but opposition led by Councilwoman Kristy Marmorato derailed the bid.

In response, Truist lowered Bally’s target price from $15 to $11, maintaining its “Hold” rating. Bally’s stock is now down over 35% from its 52-week high.

However, Bally’s fortunes could change, as New York Mayor Eric Adams holds veto power over the council’s vote. Adams’ past support and close ties with Bally’s put that scenario within the realm of possibility.

Playtika Extends Losing Streak

Mobile gaming developer Playtika was among the prominent losers for the second consecutive week. Last week’s losses amounted to nearly 5% and come after a similar decline the preceding week.

The stock is now down 35% for the year. Analysts raise concerns that the company’s user base is shrinking due to its reliance on older mobile game titles. That raises questions about the company’s long-term growth prospects.

Wynn Resorts Retreats After Profit-Taking

Wynn Resorts was among the other losers, losing almost 4% last week. However, the fall is partly due to profit booking. The stock was among the major gainers in the previous two weeks, rising by 5.2% and 14%, respectively.

Analyst sentiment towards the stock remains positive. Last week, Barclays set a $127 target for Wynn, indicating nearly 20% upside from current levels.

Other Major Gaming Industry Developments

On Wednesday, Truist raised Light & Wonder’s target price from $110 to $130 while maintaining its “buy” rating.

Elsewhere, Sweden-based gaming company Evolution AB released its Q2 earnings last week. It reported revenues of €524.3 million in Q2, a 3.1% increase from the corresponding quarter of the previous year. That was slightly ahead of the €518 million that analysts had expected.

Evolution reported an EBITDA of €345.3 million in Q2, ahead of analysts’ €337 million forecasts. The company maintained its 2025 EBITDA margin guidance, which is between 66% and 68%, despite a worse-than-expected impact from ringfencing measures in Europe.

European gambling giant Betsson also released its Q2 earnings on Friday. The company reported a 12% yearly revenue increase to €303.7 million. Organic growth increased by 16%, primarily driven by strong results in Latin America.

Betsson’s sportsbook revenue rose 15% year-over-year, while casino revenue grew 11%. It reported an adjusted EBITDA of €84.1 million, an 8% increase compared to Q2. However, the EBITDA margin dropped from 28.6% last year to 27.7%.

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