Gaming Stocks Plunge as Global Markets Reel from Iran Conflict

Roundhill Sports Betting & iGaming ETF falls over 2% amid broader market downturn

Mar. 30, 2026 at 2:56pm

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Global markets continued their decline last week, with the S&P 500 Index falling over 2% and nearing correction territory. Gaming stocks, which initially outperformed during the Iran conflict, are also looking vulnerable, with the Roundhill Sports Betting & iGaming ETF falling 2.3% and extending its year-to-date decline to over 17%. Light & Wonder and Melco Resorts & Entertainment saw gains, while Bally's Corporation and DraftKings were among the major losers.

Why it matters

The gaming industry is closely tied to broader market conditions, and the ongoing global market turmoil driven by geopolitical tensions is having a significant impact on gaming stocks. Investors are closely watching regulatory developments in the prediction market space, as well as upcoming Macau gaming revenue figures, which can affect the price action of casino stocks.

The details

Light & Wonder bucked the pessimism and saw double-digit gains last week, becoming the only gaming stock in the coverage to achieve this feat. Melco stock rose nearly 3% last week, even though it is still down over 25% for the year. MGM Resorts International's stock rose over 2% last week and has erased its year-to-date losses, leaving it almost flat for the year. Bally's Corporation continued its dismal run and fell over 12% last week, extending its year-to-date losses to over 36%. DraftKings also fell by more than 12% and is now down nearly 40% for the year. Bragg Gaming Group also saw a double-digit decline last week.

  • The Roundhill Sports Betting & iGaming ETF fell 2.3% last week, extending its year-to-date decline to over 17%.
  • The S&P 500 Index is down over 9% from its record highs and is nearing correction territory, which is a drawdown of 10% from the peak.
  • Macau's average daily gaming revenue in the third week of March was trending higher than the previous week, reaching approximately MOP 721 million.

The players

Light & Wonder

A gaming company that saw double-digit gains last week, becoming the only gaming stock in the coverage to achieve this feat.

Melco Resorts & Entertainment

A casino operator that saw its stock rise nearly 3% last week, even though it is still down over 25% for the year.

MGM Resorts International

A casino operator whose stock rose over 2% last week and has erased its year-to-date losses, leaving it almost flat for the year.

Bally's Corporation

A gaming company that continued its dismal run and fell over 12% last week, extending its year-to-date losses to over 36%.

DraftKings

A sports betting company that fell by more than 12% and is now down nearly 40% for the year.

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What they’re saying

“The self-regulation failed to cut ice with the Senators, with Schiff saying they aren't 'enough.'”

— Senator Adam Schiff

What’s next

Investors will be closely watching regulatory developments in the prediction market space in the coming weeks, as it is no longer about niche platforms but a jurisdictional battle. The CFTC has been asserting its authority to regulate prediction markets, arguing that states lack the right to do so. Additionally, investors should keep an eye on March GGR figures from the Macau Gaming Inspection and Coordination Bureau (DICJ), as their release can affect the price action of casino stocks.

The takeaway

The gaming industry is facing significant headwinds as global markets continue to decline, driven by geopolitical tensions. While some gaming stocks have seen gains, the broader industry is struggling, with concerns around regulatory developments, debt levels, and the potential impact of the Iran conflict on consumer spending. Investors will need to closely monitor the evolving landscape to navigate the challenges facing the gaming sector.