Wall Street Bets: Third-quarter prospects, digital, Churchill Downs

Wall Street Bets is a roundup of recent notes from analysts covering the gambling industry. “Despite macro concerns (inflation/gas prices) as well as prediction market impacts, we remain positive heading into 3Q prints, particularly with gaming stocks down 12/22% in the last month/quarter as median ’26/27 revisions were flat while multiples fell 0.5x. G2E meetings and public data confirm our view that the industry remains resilient. “We expect 3Q commentary to be cautiously optimistic and view it as a positive catalyst for the group.