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The Trinity Terminal is flashing a new sector theme for 2026: gaming and gambling stocks are waking up after a multi-year slumber. And there are three names I have my eye on.

Why Now?

Americans are gambling more than ever. Turn on any sporting event and half the commercials are DraftKings, FanDuel, or some betting app. Polymarket just got the green light from the CFTC to operate in the U.S. again. Everything is becoming gamified: elections, wars, mundane events.

I don't gamble personally. I like my odds better as a trader. But I can't ignore what's happening in this space. Check out this chart of the gaming sector (BJK) versus the S&P 500. After years of underperformance, we're finally seeing relative strength creep back into these names.
 

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Here's the Trade Setup

Three names are near multi-year highs with some of the highest Trinity Scores in the sector:

• Red Rock Resorts (RRR)
• Las Vegas Sands (LVS)
• Rush Street Interactive (RSI)

Historically, casinos perform well during minor economic contractions. They struggle during steep downturns. If we get sticky inflation with a quietly growing economy, this sector could run hard.

Rush Street is particularly interesting to me, with its high volatility and 10% short float, making it a potential candidate for a short squeeze.
 

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The Macro Backdrop Supports This

Stocks are in a bull market. The Russell 2000 seems ready to close at its highest monthly level in history. Large-caps recently confirmed higher lows last week. In this environment, money rotates into neglected sectors showing technical strength. Gaming fits the bill.

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