DraftKings and Flutter Earnings Estimates Lowered: Why Sports Betting Outlook Remains Key Despite Prediction Market Shifts

• Analyst trims DraftKings, Flutter earnings forecasts to Street lows
• NFL outcomes, not prediction markets, cited as reason for downward revisions

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Shares of DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT) have been quite unstable lately. Many analysts attribute the recent downturn in these sports betting stocks to the surge in activity on prediction markets, coupled with new exchanges providing same-game football parlays.

The core issue appears to be a series of customer-friendly outcomes during NFL games recently. Given that the onset of NFL betting typically accounts for a substantial portion of operators’ third-quarter revenue, the financial figures for DraftKings and Flutter’s earnings before interest, taxes, depreciation, and amortization (EBITDA) might be adversely affected after September’s results.

“We estimate FanDuel could face approximately $130 million in EBITDA losses for the month, leading to a total of $44 million in U.S. EBITDA for the quarter (where the U.S. consensus is $143 million),” said Citizens Equity Research Analyst Jordan Bender. “DraftKings is likely to experience slightly worse results, with the bad sports outcomes coinciding with an emphasis on various promotions and customer acquisition campaigns, leading to an estimated $200 million EBITDA deficit during the month, resulting in an overall quarterly EBITDA of -$102 million (where the consensus was expected at +$51 million).”

Bender has adjusted his 2025 EBITDA prediction for DraftKings down from $871.6 million to $705.3 million, while reducing his 2026 forecast slightly from $1.30 billion to $1.29 billion. Similarly, for Flutter, he has decreased the 2025 EBITDA outlook from $3.32 billion to $3.18 billion and has also revised next year’s estimate from $4.37 billion to $4.30 billion.

Potential Challenges Ahead for DraftKings and Flutter

Recently, shares of DraftKings and Flutter fell by 16% and 8.82% respectively, indicating that NFL weekends haven’t produced profitable outcomes for these gaming companies.

These declines have caused both companies’ stocks to land below their 200-day moving averages – a bearish signal that could prompt short sellers to act. Even if such predictions do not come true, the rest of the 2025 NFL season could remain more of a challenge than an opportunity for DraftKings and Flutter.

“The upcoming setup could be tumultuous if gaming margins remain volatile, prompting further downward revisions throughout the NFL season,” added Bender. “However, diversification in player prop bets might benefit these companies, potentially boosting margins during favorable weeks, although historical information does not support this occurring positively across recent NFL seasons.”

Bender retains “market outperform” ratings on both DraftKings and Flutter, but has cut his price targets, reducing DraftKings from $54 to $51 and Flutter from $345 to $340.

A Glimmer of Hope for DraftKings and Flutter

For investors seeking positive takeaways from the recent share price plunges of DraftKings and Flutter, there could be a silver lining. Both companies might utilize their lower stock prices to repurchase shares, as both already have buyback programs in place.

“In the absence of headline risks from prediction markets, we can anticipate that shares of these companies will stabilize as they engage in buybacks, particularly since online gaming stocks were down 17% (FLUT) and 22% (DKNG) in September, contrasting sharply against a Russell 3000 increase of +3%,” observes Bender.

Bender also expressed that, while DraftKings and Flutter’s current valuations are discounted in relation to their long-term potential, the companies must clearly communicate their strategies in the coming months. Otherwise, their stocks could remain vulnerable to positive headlines emerging from the prediction markets.

In conclusion, as the NFL season progresses, DraftKings and Flutter face significant challenges that may reshape their earnings estimates. What’s evident is the foundation they’ve built can withstand fluctuations; it just depends on how effectively they navigate the upcoming hurdles and maintain investor confidence.

Gaming and Leisure Properties Paying $184 Million for New Mexico Racino Real Estate

Gaming and Leisure Properties (NASDAQ: GLPI) is strategically expanding its footprint in the high-growth sector of racino real estate through the acquisition of Sunland Park Racetrack & Casino in southern New Mexico. This $183.75 million deal underscores the increasing value of integrated gaming and racing venues, securing a robust asset at an 8.2% cap rate.

With this acquisition, GLPI positions itself strategically near the New Mexico/Texas border, a region with substantial growth potential. This deal also features a 2% annual rent escalator, promising to be immediately beneficial to its adjusted funds from operations (AFFO), a key performance indicator for evaluating a REIT’s financial health.

Originally opened in 1959, Sunland Park spans around 157 acres and boasts 738 slot machines and 12 electronic gaming tables, all within its 25,000 square foot gaming floor. The facility is home to both Thoroughbred and Quarter Horse racing, with a one-mile racetrack and a 733-seat stadium. Additional amenities include a 600-person ballroom, a simulcast wagering area, and a 78-room hotel, with plenty of underutilized land offering significant opportunities for expansion.

Strategic Expansion with Strategic Gaming

This acquisition marks the fourth property managed by Strategic Gaming that has been bought by GLPI, further solidifying their relationship. Strategic Gaming is noted for its operational prowess in regional gaming markets.

Previously, in May 2024, GLPI agreed to purchase property assets of Baldini’s Casino in Sparks, Nevada, and two venues in South Dakota totaling $105 million. This reflects GLPI’s ongoing commitment to expanding its footprint in strategically advantageous locations.

Geographical and Competitive Advantages

Sunland Park also presents geographical advantages, located within the Borderplex Region, which encompasses El Paso, Texas, and Las Cruces, New Mexico. This area features a sizable adult population of approximately 2 million, coupled with an increasing median household income. Notably, the racetrack faces limited competition, with the closest rival situated over 20 miles away and no new commercial casinos planned within a 550-mile radius.

GLPI’s Strategic Focus on Non-Mainstream Markets

This acquisition aligns with Gaming and Leisure’s strategy of focusing on less competitive markets rather than venturing into the saturated Las Vegas Strip. For instance, in September, the company secured a financing deal worth $225 million in collaboration with Caesars Entertainment, showcasing its strategic approach to financing and long-term partnerships.

Furthermore, they entered into a $735 million sale-leaseback agreement for the Twin River Lincoln Casino Resort in Lincoln, Rhode Island, underscoring their preference for operational flexibility and strategic property acquisitions in the gaming industry.

Conclusion

The purchase of Sunland Park Racetrack & Casino by Gaming and Leisure Properties represents a significant move into an area rich with potential. With its promising amenities and advantageous location in a growing market, this acquisition is expected to yield fruitful results and further enhance GLPI’s portfolio.

Key Takeaways:

• Acquisition price: $183.75 million with a cap rate of 8.2%
• Located in New Mexico-Texas border region
• Open since 1959, with expansion opportunities
• Strategic relationship with Strategic Gaming enhanced
• Focusing on less competitive markets aligns with GLPI’s strategic vision

In summary, Gaming and Leisure Properties’ strategic acquisition of Sunland Park Racetrack & Casino is poised to strengthen its market position while offering opportunities for expansion in the New Mexico gaming landscape.

Las Vegas Casinos Dining News: Bellagio’s Yacht and Bar Code Closures and the Search for the USA’s Best Coffee Shop

As the allure of Las Vegas casinos continues to evolve, the iconic Bellagio is preparing to launch a breathtaking new dining experience that blends high-stakes glamour with nautical luxury. A magnificent 33-foot yacht will soon provide guests with picturesque rides around the stunning fountains, adding a new layer of excitement to the citys premier gaming landscape. This spectacular addition will be housed at the Carbone Riviera, which is set to welcome diners this fall.

What to Expect at the Bellagio

• The yacht will be lowered into the fountain’s lake.: The yacht, costing an impressive $3-$4 million, needs to be lowered by crane due to the absence of a boat ramp.
• Exclusive boating experience: The yacht will provide an exclusive experience, offering rides while the fountains perform their iconic dances.
• Limited dining options: Despite the grandeur, expectations should be managed, as social media hype has led to speculation about lavish dining onboard, which is not promised by MGM Resorts.

As the yacht’s launch approaches, it’s important to temper expectations as photos circulating on social media showcase extravagant setups that may not be feasible for this new addition.

Carbone Riviera Takes Centre Stage

The Carbone Riviera restaurant, located in the former Picasso space, aims to elevate the dining experience on the Las Vegas Strip. Expected to feature a menu highlighting Italian dishes, it promises to be a hot spot for locals and tourists alike.

Java Las Vegas: A Coffee Lover’s Paradise

In a different yet equally as exciting vein of news, Yelp has awarded the title of best coffee shop in the United States to Yaw Farm Coffee Roasters, located at 7034 W. Charleston Blvd. in Las Vegas. This local gem has maintained an impressive 96% five-star rating from its patrons for three consecutive years, making it a must-visit for coffee lovers.

Friendly Competition: The Dining Landscape

In additions and closures, Bar Code Burgers has recently called it quits after a decade of serving customers. Despite receiving numerous accolades, including multiple wins for Best Burger at the Vegas Weekly’s Best of Vegas Awards, the restaurant has unfortunately succumbed to the competitive landscape of Las Vegas eateries.

Other Dining Developments

• Hearthstone Kitchen & Cellar: set to make a return to the Las Vegas dining scene, replacing the recently closed Leoncito at Red Rock Resort.
• Morimoto: at MGM Grand is temporarily closing for renovations and is set to reopen with an updated design and menu.
• Wynn Resorts: Expanding overseas, Wynn is bringing their famous Delilah restaurant to Al Marjan Island in the UAE, featuring 22 dining options upon its opening.

Health Concerns on the Strip

In a more concerning turn of events, Los Tacos has been shut down following a health inspection that revealed multiple violations, including improper food storage and maintenance issues. Local health inspectors emphasized the importance of adherence to safety regulations to ensure customer well-being.

Summary

This week in Vegas dining features some exciting developments, including the addition of a luxurious yacht at Bellagio, the closure of a beloved burger joint, and the esteemed ranking of a local coffee shop. With new dining ventures and the importance of health safety measures, the Las Vegas Strip continues its dynamic evolution in the culinary world.

From Skydiving Survival to High-Stakes Thrills: What to Do After Your Vegas Desert Adventure at Las Vegas Casinos

While many travelers visit Nevada to experience the high-stakes thrills of Las Vegas casinos, some seek an even more intense adrenaline rush through extreme sports. However, a 24-year-old tourist from the UK recently faced a terrifying reality when a tandem parachute dive turned catastrophic after both the main and reserve parachutes failed. This shocking incident, occurring far from the bright lights of the gaming floor, has prompted a formal investigation by the FAA.

A Lucky Escape or a Terrifying Mishap?

Mitchell Deakin, a tourist from Blackpool, UK, is recovering from significant injuries following a tandem skydive that went horribly wrong. He experienced an 11,000-foot drop due to parachute failure while flying over the picturesque desert landscape near Las Vegas.

On September 17, Deakin, with limited skydiving experience, sought out the adventure of a lifetime, signing up for a tandem jump with a private company at a local airport. Unfortunately, his dream vacation quickly turned into a nightmare.

The Incident

While in freefall, both the primary and backup parachutes failed, leaving Deakin and his instructor, Jiron Arcos Ponce, to plummet at speeds of 35 to 45 mph. Emergency services quickly airlifted them to the trauma unit at the University Medical Center in Las Vegas. The situation remained critical upon arrival.

Injuries Sustained

• Fractured pelvis
• Broken ribs
• Perforated lung and kidney

Medical personnel had to perform surgery on Deakin, inserting metal plates to prevent further collapse of his pelvis. They also drained fluid from his injured lung, highlighting the severity of his condition. According to updates from family, the recovery process is progressing, and Deakin is now able to walk with assistance.

Background and Investigation

Deakin was reportedly in Las Vegas on what friends described as a dream getaway, marked by adrenaline-filled experiences. Sadly, this skydive will not be remembered as expected.

Authorities, including the Federal Aviation Administration (FAA), are now looking into the circumstances surrounding the parachute failures. The investigation aims to determine whether any safety regulations were not adhered to during the packing of the parachutes.

All skydivers in the US must sign a waiver to participate, as the risks are explicitly detailed, typically including reminders regarding potential injury or death.

What This Means for Skydiving Safety

This incident raises serious questions about the procedures in place for skydiving operations. A few critical points to consider include:

• Proper training and certification of instructors.
• Regular checks and maintenance of equipment.
• Clear communication of safety protocols to all jumpers.
• Incident reporting mechanisms to maintain safety standards across operations.

As investigations unfold, the findings could indeed lead to changes in regulations to ensure future safety for thrill-seekers eager to experience the freedom of skydiving.

Conclusion

Mitchell Deakin’s survival of such a fall is nothing short of miraculous, but it also serves as a stark reminder of the inherent risks involved in extreme sports. Skydiving can provide exhilarating experiences, but the safety of participants must always come first.

As we await further developments regarding the FAA investigation, our thoughts are with Deakin as he continues his recovery. This incident may lead to enhanced protocols in the industry, ensuring that safety is prioritised above all else.

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How Macau Casinos Weathered Typhoon Ragasa to Drive Higher Gross Gaming Revenue

Macau, the premier gaming metropolis of Asia, proved its resilience as its casinos weathered the challenges posed by Typhoon Ragasa. Although forced to shut down for 33 hours, these casinos reported a remarkable increase in gaming revenue, showcasing the enduring appeal of this unique entertainment hotspot.

Impact of Typhoon Ragasa

• Closure and Safety Measures: The powerful Typhoon Ragasa compelled the government of the Chinese Special Administrative Region (SAR) to mandate a temporary casino closure. This spans a crucial 33-hour period, limiting access to and from Macau during this tumultuous time.
• Unexpected Outcomes: Despite the interruption, the city managed to record substantial increases in gaming revenue, surprising many analysts.

In September, casinos in Macau generated MOP18.28 billion (approximately US$2.28 billion) in gross gaming revenue (GGR). This marked a 6% increase from the same month of the previous year, indicating that this was not merely a fortunate anomaly but part of a larger upward trend.

Gaming Revenue Trends

September’s results highlight a continuing recovery for Macau’s gaming industry:

• It was the eighth consecutive month of year-over-year GGR growth.
• 2025 is shaping up to be Macau’s best year since the pandemic, with figures reaching more than $22.64 billion through September — a staggering 91.5% of its 2019 revenue for the same period.

Visitor Trends and Expanding Attractions

As of August, visitor numbers were also on the rise, with approximately 26.9 million arrivals, edging close to pre-pandemic levels, which saw 27.4 million visitors within the same timeframe in 2019.

Macau is evolving beyond its image as a mere gambling destination, increasingly catering to leisure tourism with:

• Family-friendly attractions like amusement parks.
• Cultural sites such as the Macau Science Center.
• Entertainment venues hosting prominent K-pop acts.

Upcoming Events

October is poised to usher in further growth as around 1.2 million mainland Chinese visitors are expected for the Golden Week festivities from October 1st to 8th, which include both the National Day and Mid-Autumn Festival. This surge of visitors is likely to bolster the already thriving gaming and tourism sectors.

Typhoon Updates

Macau was fortunate as Typhoon Ragasa shifted south and spared the city from severe damage, although some flooding occurred in low-lying areas. Emergency services quickly began cleanup operations, further demonstrating the area’s resilience and preparedness for natural disasters.

Typhoon’s Wider Impact

While Macau managed to limit its suffering, Ragasa wreaked havoc in the Philippines, resulting in numerous casualties and significant damage worth over $100 million.

In summary, Macau’s ability to bounce back from Typhoon Ragasa showcases the strength of its gaming industry and the region’s appeal as a renewable tourism destination. The ongoing recovery, coupled with an influx of visitors and diverse attractions, indicates that Macau remains a powerhouse in the global gaming landscape.