iGaming Stocks in 2026: From +25% to -65%

The online gambling market continues to grow, with analysts forecasting an average annual growth rate of around 9% over the next five years. However, the combined enterprise value (EV) of the largest publicly traded iGaming companies fell from $149 billion to $115 billion in the first nine months of 2026 – a 23% decline. These figures come from an analysis by investment fund AVC examining how the iGaming market has changed in 2026. However, not all companies lost value: while some experienced significant declines, others recorded gains.

Valuation Performance

🔵 Only three of the nine largest companies increased in value, with a median decline of 28%.

🔵 The biggest losses were recorded by major online betting operators: Flutter (-65%), DraftKings (-43%), and Entain (-42%).

🔵 Evolution (+25%), Lottomatica (+21%), and The Lottery Corporation (+5%) posted gains.

🔵 Flutter and DraftKings accounted for $32 billion of the total $34 billion decline. Flutter was the largest company in the group, while both companies experienced some of the sharpest share price drops.

Two Major Sources of Pressure on Operators

🔴 Competition from prediction markets in the US. Users can trade contracts based on sporting event outcomes, allowing platforms such as Kalshi to operate under federal oversight without paying state gambling taxes, unlike traditional sportsbooks. These platforms can also offer more competitive odds. Kalshi is already valued higher than Flutter and DraftKings combined.

🔴 Rising taxes in the UK. The online casino tax rate has nearly doubled, increasing from 21% to 40%. Entain estimates that the new tax measures will cost the company an additional £200 million annually.

Buying the Dip

🔵 American billionaire Kenneth Dart has become the largest shareholder in both Flutter and Evolution, holding approximately 30% of each company.

🔵 Lottomatica has agreed to merge with Spain’s CIRSA. Following the transaction, the combined company will become the second-largest publicly traded company in the industry after Flutter.

Conclusion

Flutter shares have fallen 65% since the beginning of the year, while Kenneth Dart, the company’s largest shareholder, has continued increasing his stake during the downturn. Whether the stock recovers will largely depend on how the US Congress decides to regulate prediction markets.