Q2 Preview: Regionals (+); Macau (-), Digital (-)

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Q2 Preview: Regionals (+); Macau (-), Digital (-)

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Gaming

Q2 Preview: Regionals (+); Macau (-),

Digital (-)

Price Objective Change

Regional beats, Macau mixed, cautious on digital 20 July 2026

We 1) update our models for recent trends across Las Vegas, regionals and Macau, 2) Equity

discuss recent online trends and our latest earnings bridges for DraftKings (DKNG) and United States

Flutter (FLUT), and 3) review performance & valuation. Since the start of Q2, US Centric Gaming

Gaming is up +18%, Digital Gaming is up +2%, and Macau stocks are -9%.

Shaun C. Kelley

Bottom line: With CZR and MGM both receiving bids to go private, investors are looking Research Analyst

for opportunities in Locals, Regionals and Macau. We expect beats across the board for BofAS +1 646 855 1005

Regionals, and mixed performance in Locals and Macau. We think the event path in shaun.kelley@bofa.com

digital remains challenging with outcomes weighing on Q2 and PM volume accelerating. Julie Hoover

Research Analyst

Online: Expecting Q2 misses and cautious on 2H handle BofAS+1 646 855 0674

We are bridging to Q2 EBITDA of $110M for DraftKings, well below the Street’s $179M julie.hoover@bofa.com

and $100M for FanDuel, vs. the Street’s $114M (see our note with bridges here). While DanyResearchAsadAnalyst

World Cup supported June trends, we have more concerns on industry handle growth in BofAS

Q3 and Q4 as prediction market (PM) volume continues to accelerate as well as the +1dany.asad@bofa.com646 855 5238

depth of the marketing spend and J-curve as PM marketing spikes into NFL kickoff.

Las Vegas: Strip Q2 in-line, Locals below

LV Strip: Our Q2 estimates are In line with the Street. RevPAR has been solid, up +4%

Key Terms:through May and June RevPAR is up +8% per STR data.