Shares of major US gambling companies took a hit yesterday (10 March), as market-wide concerns over economic uncertainty triggered a steep sell-off on Wall Street.
Leading the decline, Penn Entertainment shares plunged 9.46%, while FanDuel owner Flutter Entertainment shed 8.36% and DraftKings slid 5.51%.
Caesars Entertainment also saw a significant drop of 4.78%, while shares in affiliate business Gambling.com Group declined 5.11%.
The broader stock market also suffered heavy losses, with the S&P 500 falling 2.7%, marking its worst trading session of 2025.
The Nasdaq 100 tumbled 3.8%, experiencing its biggest one-day decline since September 2022, and the Dow Jones Industrial Average lost 2.08%.
Gambling stocks have been under pressure as concerns mount over the US economic outlook and consumer spending.
In Europe, where markets remained relatively stable, MGM Resorts’ joint venture partner in BetMGM, Entain, saw a decline of 11.02%.
Interestingly, Las Vegas Sands bucked the trend, rising 0.62%, while MGM Resorts only slipped 0.44%, suggesting that investors may still see value in land-based casino operators with a stronger international footprint.
Economic uncertainty
The broader market sell-off was triggered by rising fears of a US economic downturn, exacerbated by President Donald Trump’s recent remarks on trade policies.
In a Sunday TV interview, Trump referred to the economy as being in a “period of transition” but did not rule out the possibility that his aggressive trade policies could lead to a recession.
The comments spooked investors, leading to Monday’s sharp declines across multiple sectors.
Financials, tech, consumer discretionary, and communication services took the hardest hit.
