iGaming Stocks to Continue Commanding Premiums Over Sports Betting Peers
Posted on: April 14, 2026, 12:20h.
Last updated on: April 14, 2026, 12:20h.
- Prediction markets are pressuring online sportsbook operators
- iGaming-centric companies have prediction market buffers
- Analyst highlights Rush Street Interactive, Super Group as possible iGaming winners
Over the past year, shares of online sportsbook operators, including DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT), were drubbed with the rise of prediction markets widely seen as one of the primary culprits.
It’s gotten so bad for sports wagering equities that the group performed significantly worse than the S&P 500 and the software sector, which has been drilled by artificial intelligence (AI) fears. On the other hand, iGaming stocks, including Rush Street Interactive (NYSE: RSI) and Super Group (NYSE: SGHC), have held up better than their sports betting peers.
In a new report, Macquarie analyst Chad Beynon says that until clarity is reached on the availability of sports event contracts in the US, consumer-facing sports betting companies are likely to continue experiencing “depressed” earnings before interest, taxes, depreciation and amortization (EBITDA) multiples while iGaming stocks command premiums.
Until then, we expect Online valuations in the US to remain highly bifurcated with iGaming EBITDA exposure commanding a hefty premium to OSB (15x vs 9x target multiples, in our view),” observes Beynon.
He adds that while the broader online gaming “sell-off is overdone” and that the market is factoring worst-case outcomes, clarity on the fate of sports derivatives offered by prediction markets. However, that may not arrive until next year, assuming the Supreme Court decides to take up related cases.
Behold the Bifurcation with iGaming Stocks
As Beynon notes, there’s bifurcation at play as it relates to sports betting names and iGaming stocks and it’s no more apparent than when comparing DraftKings and Rush Street Interactive.
While Rush Street Interactive has sports betting exposure, it’s widely viewed as more iGaming-centric than DraftKings or Flutter, thus providing investors with some prediction markets protection. That buffer goes a long way toward explain why RSI is off just 3% from its August 2025 highs while DraftKings has lost more than half its value over that span.
“This bifurcation is no more apparent than when comparing the valuations and stock performances of DKNG (10x ’27E EBITDA and -53% from Aug highs) and RSI (17x ’27E EBITDA and -3% from Aug highs), suggesting even greater multiple bifurcation than our target multiples above as the market assigns a premium valuation to RSI’s iGaming revenue exposure which we estimate at ~75% vs DKNG at ~30%,” says Beynon.
RSI is also a potential beneficiary of Maine’s surprise decision to legalize iGaming and the possibility that Virginia will do so next year.
Super Group Has Potential to Bounce Back
Shares of Super Group recently scuffled with much of that weakness attributable to a bearish report issued by a short seller in February. That may be obfuscating the facts that this is very much an iGaming stock and one that’s not vulnerable to prediction markets pressure because the company doesn’t operate in the US.
“Super Group has also seen significant multiple compression over the past year despite above market growth with ~80% of revenue derived from iGaming and no US exposure, while management is anticipating a much smoother transitioning in Alberta when the province launches regulated markets in June/July given the lessons learned from Ontario,” concludes Beynon.
Super Group does offer sports wagering services outside the US, including in Africa where it holds dominant share across close to 10 markets, indicating the operator could benefit from the World Cup.
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