As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer discretionary - gaming solutions industry, including Rush Street Interactive (NYSE: RSI) and its peers.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Gaming solutions companies provide the technology infrastructure behind gambling—slot machines, table game systems, lottery terminals, sports-betting platforms, and back-end software for casinos and online operators. Tailwinds include the ongoing legalization of sports betting across U.S. states and international markets, growing adoption of digital and mobile wagering, and casino operators' demand for data-driven player engagement tools. However, headwinds include stringent and evolving regulatory requirements across jurisdictions, high upfront R&D costs to develop next-generation platforms, and customer concentration risk given the limited number of large casino operators. Increasing competition from in-house technology development by major operators also pressures demand.

The 6 consumer discretionary - gaming solutions stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.7% since the latest earnings results.

Best Q2: Rush Street Interactive (NYSE: RSI)

Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $393.8 million, up 46.3% year on year. This print exceeded analysts’ expectations by 7.1%. Overall, it was a very strong quarter for the company with full-year revenue and EBITDA guidance topping analysts’ expectations.

Richard Schwartz, Chief Executive Officer of RSI, said, "We delivered another record quarter, setting all-time highs once again for revenue and Adjusted EBITDA, driven by continued share gains in online casino and our sports betting markets benefiting from the World Cup.”

Rush Street Interactive scored the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 16.3% since reporting and currently trades at $25.76.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.

Accel Entertainment (NYSE: ACEL)

Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $368.1 million, up 9.6% year on year, outperforming analysts’ expectations by 3.3%. The business had a strong quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.3% since reporting. It currently trades at $11.64.

Is now the time to buy Accel Entertainment? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: PlayStudios (NASDAQ: MYPS)

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.

PlayStudios reported revenues of $54.99 million, down 7.3% year on year, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.

As expected, the stock is down 23.2% since the results and currently trades at $0.52.

Read our full analysis of PlayStudios’s results here.

DraftKings (NASDAQ: DKNG)

Getting its start in daily fantasy sports, DraftKings (NASDAQ: DKNG) is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.44 billion, down 4.6% year on year. This print lagged analysts’ expectations by 4.5%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates.

DraftKings had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 3.6 million users, up 9.1% year on year. The stock is up 9.6% since reporting and currently trades at $24.31.

Read our full, actionable report on DraftKings here, it’s free.

Churchill Downs (NASDAQ: CHDN)

Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ: CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.

Churchill Downs reported revenues of $980 million, up 4.9% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it failed to impress in some other areas of the business.

The stock is down 1.1% since reporting and currently trades at $87.52.

Read our full, actionable report on Churchill Downs here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.