The new year is fast approaching, and it’s time for the gambling industry to reflect on the past year. Headlines included further expansion of sports betting into new states, major acquisitions, and even a company-wide ransomware attack or two.
For some, the year offered a chance for redemption after a turbulent 2022, while others went from hero to zero in just 12 months. Now that the year is coming to an end, it’s time to sort out the winners from the losers.
Benefit from the stock prices of gaming giants, including operators and suppliers, Vegas slots news online has compiled a list of winners for 2023. From DraftKings to MGM Resorts International and AGS, all of these companies had a stellar year.
5. MGM Resorts International
January stock price: $37.70
December stock price: $40.35
Increase: 8%
MGM saw a healthy year-over-year rise in its revenues throughout 2023, contributing to 8% growth in its stock price. Over the 12 months to September 2023, the casino giant generated income of $15.38 billion, up 22% on the previous year. The fourth reported quarter of Q3 2023 continued this growth trend, with a 16% year-over-year increase.
A ransomware attack left MGM’s systems down at its Las Vegas properties
The company has not been without its problems, which may be why its stock price growth has remained modest. In September, a ransomware attack disabled MGM’s systems at its Las Vegas properties, including slot machines, room keys and even elevators. It took weeks before the company resolved the issue, which reportedly cost up to $100 million.
To make matters worse, MGM workers agreed to strike in both Las Vegas and Detroit while trying to secure new contracts. The tense situation – which at one point could have led to a strike during the Formula 1 race weekend in Las Vegas – led to more advantageous deals for workers in both cities.
Given the tough time MGM has had this year, an 8% share price increase could certainly be classified as a win. The future looks brighter for the company too after it recently secured a deal to launch its first casino resort in Japan by 2030. The company is also looking to set up a casino in the UAE.
4. Churchill Downs Incorporated
January stock price: $44.11
December stock price: $46.24
Increase: 10%
Churchill Downs Incorporated (CDI) saw an impressive 49% year-over-year increase in its revenue for the third quarter of 2023. This contributed to its revenue rising 40% in the 12 months through September 2023, to $2.38 billion in that the time. .
Business is booming for the traditional American horse racing brand, which may be why its stock price has risen 10% since January. This was recently reinforced by the launch of sports betting in CDI’s home state of Kentucky. Gov. Andy Beshear placed the state’s first bet at Churchill Downs Racetrack in September.
The company’s stock price peaked at $149.08 in May of this year, a rise that coincided with $149.y Run the Kentucky Derby. Betting set a new record of $288.7 million, beating the previous year by about 5%.
However, CDI has found itself embroiled in controversy. The company’s stock price gradually declined after the Derby while the horse deaths that baffled officials were investigated. CDI was forced to cancel races on the Spring Meet calendar after dozens of horses were killed at the Kentucky track. Officials were unable to find any evidence that the track surface caused the deaths and racing resumed in August.
Regardless, it’s been another strong year for CDI and it hopes to be able to maintain that momentum as we move into 2024.
3. Light and wonder
January stock price: $59.38
December stock price: $87.85
Increase: 48%
iGaming supplier Light & Wonder (formerly Scientific Games) has seen success after success in 2023. This continued until the most recent quarter reported in Q3 when the company reported record growth in SciPlay and iGaming revenues. This was the fifth consecutive quarter of double-digit annual growth and contributed to year-to-date revenue of $2.13 billion, up 17% from 2022.
Gaming console sales saw steady growth of 23%
This success is due to a number of factors. First, gaming console sales have seen steady growth, rising 23% in the third quarter of 2023. Likewise, revenue from gaming operations is on the rise, particularly in North America where they have grown over the past 13 quarters. iGaming revenue in the US specifically grew 25% in the third quarter, and this growth is expected to increase further following the recent rollout of a live casino in Michigan.
The company also completed the purchase of SciPlay in a deal valued at $500 million. The company bought the remaining 17% of the company while also offloading its lottery division to Brookfield Business Partners for $5 billion. Matt Wilson, CEO of Light & Wonder, emphasized that his company’s financial growth provides validation for these business moves.
All of this has contributed to Light & Wonder’s stock price rising steadily since the beginning of the year, reaching $87.85 in December. To put that into perspective, that’s a 250% increase in the share price from five years ago. November also hit an all-time high of $88.39.
2. Playaag
January stock price: 5.11
December stock price: 7.71
Increase: 51%
The second supplier on our list is US-based PlayAGS, also known as AGS. Although it’s still a much smaller company than the others on this list, AGS’s impressive year cannot be ignored. Its revenue grew 14% in the third quarter of 2023 as it saw strong growth across all three of its business segments. This was especially true in equipment sales, which rose 30% to $27.8 million.
This success is partly due to the series of deals that PlayAGS has closed this year. This includes an agreement to supply online gaming content to Caesars Sportsbook and Casino, which was concluded in January. The deal includes Caesars’ operations in New Jersey and Pennsylvania, an agreement that AGS Interactive’s general manager said will help strengthen Caesars’ “position as a leading operator.”
PlayAGS shares rose 51% throughout 2023, reaching a peak of $7.94 in July. This total is still small compared to the $32.04 price the company secured in 2018, however, the company is back heading in the right direction after the pandemic in 2020 coincided with a rapid decline to just $1.44.
1. Kings Project
January stock price: 11.63
December stock price: 37.19
Increase: 220%
Last but not least, we head into the ever-growing world of sports betting for one of the biggest names in the game. Just 12 years ago, DraftKings was in a much different situation. The US-based sports betting giant made the list of 2022’s biggest losers after its shares fell 57% for the year. This was thanks to a list of challenges, including lost prospects, hacking, and high marketing costs.
The company has surpassed its largest competitor FanDuel in terms of US market share
This year, things have changed dramatically for DraftKings. More recently, the company overtook its biggest competitor FanDuel for U.S. market share. The company now has a 31% online gambling share versus FanDuel’s 30%. The numbers include both iGaming and sports betting, while FanDuel remains at the top of betting alone.
Matt Kalish, president of DraftKings North America, shared a chart on X to indicate the growth:
As for revenues, that has seen a significant rise as well. DraftKings reported third-quarter revenue of $790 million, well above expectations, while its losses were much smaller than expected. Shares jumped more than 11% after the news was announced last month, which included a 57% year-over-year rise in revenue. The average number of monthly unique players also increased by a staggering 40% to 2.3 million during this period.
Jason Robbins, CEO and co-founder of DraftKings, attributed this in part to continued expansion across the United States, including the recent launch of an online sportsbook in Kentucky. The company is also awaiting licenses and regulatory approvals in Maine and North Carolina.
The sports betting giant is clearly far from slowing down, and its stock price’s 220% rise reflects that. The company still has a long way to go to reach its peak of $71.98 secured during the pandemic in 2021, but it’s certainly moving in the right direction after a tumultuous 2022.
