Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Rush Street Interactive (NYSE: RSI) and the best and worst performers in the consumer discretionary - gaming solutions industry.

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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.9%.

While some consumer discretionary - gaming solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

Best Q1: 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 $370.4 million, up 41.1% year on year. This print exceeded analysts’ expectations by 11.3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

Richard Schwartz, Chief Executive Officer of RSI, said, "We are pleased to report another strong quarter of results, setting new records once again for revenue, net income and adjusted EBITDA.”

Rush Street Interactive achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 14.6% since reporting and currently trades at $27.52.

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

Inspired (NASDAQ: INSE)

Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $57.2 million, down 5.3% year on year, falling short of analysts’ expectations by 5.8%. However, the business still had a strong quarter with a beat of analysts’ EPS and adjusted operating income estimates.

The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $7.35.

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

Weakest Q1: 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 $58.41 million, down 6.9% year on year, exceeding analysts’ expectations by 9.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth in the group. As expected, the stock is down 11.6% since the results and currently trades at $0.45.

Read our full analysis of PlayStudios’s results here.

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 $351.6 million, up 8.5% year on year. This result surpassed analysts’ expectations by 2.3%. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is down 8% since reporting and currently trades at $11.48.

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

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 $1.65 billion, up 16.8% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.

DraftKings had the weakest full-year guidance update among its peers. The company reported 4.2 million users, down 2.3% year on year. The stock is down 2.5% since reporting and currently trades at $24.59.

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

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.