VanEck’s Gaming ETF Faces Headwinds as Industry Leader Cuts Outlook

VanEck Gaming ETF US92189F8822

The VanEck Gaming ETF encountered selling pressure at the start of the week, driven by cautious forecasts from a major industry player. While the sector achieved profitability last year, key constituents like DraftKings have adopted a more restrained view for 2026 than previously anticipated by the market. This shift is prompting investors to reassess the growth trajectory for the entire gaming industry.

Key Data Points:
* DraftKings 2026 Revenue Forecast: $6.5 to $6.9 billion (Market Expectation: $7.3 billion).
* DraftKings 2026 Adjusted EBITDA Forecast: $700 to $900 million (Market Expectation: $998 million).
* Recent Growth: DraftKings reported a 43% quarterly revenue increase to $1.99 billion.
* ETF Price: The fund closed the previous trading week at $36.13.

The primary catalyst for the ETF's recent volatility stems from DraftKings' updated projections. Despite the company closing 2025 in the black for the first time, its targets for 2026 fell short of analyst consensus. Management has signaled to shareholders that the coming period will be an "investment year," with capital directed toward new predictive platforms and customer acquisition, potentially weighing on near-term profitability.

The market's response underscores that reaching profitability is no longer sufficient on its own. Investors are now critically evaluating the costs associated with further scaling operations within an environment of increasing regulation.

Portfolio Composition Provides a Mixed Picture

The subdued outlook immediately impacted other significant holdings within the VanEck Gaming ETF. Flutter Entertainment, which holds a weighting of approximately 5.67% in the fund, saw its shares decline by over four percent. Similarly, MGM Resorts and Caesars Entertainment faced pressure amid the broader sector pessimism.

However, stability was provided by companies focused on gaming infrastructure and real estate. Holdings such as Aristocrat Leisure (8.21% weighting) and VICI Properties (8.03%) acted as buffers against the pronounced swings in pure-play online operators. A key question for the fund is whether its global diversification can ultimately offset regional growth concerns. The coming months will reveal if this broad exposure can counterbalance softness in the U.S. sports betting market.

Investor Day in Focus

Attention now turns to DraftKings' virtual investor day scheduled for March 2. Market participants anticipate detailed explanations regarding the infrastructure investments that led to the reduced forecasts. Furthermore, the performance of international giants like Galaxy Entertainment and Evolution AB will be scrutinized to better gauge the global health of the gaming sector.

@ boerse-global.de | US92189F8822 VANECK’S