Primate King

How to play Primate King

For the gaming industry, the marked economic shift over the course of 2026 and a return to an elevated interest-rate environment after years of post-Covid easing could dissipate some of the optimism that prevailed at the onset of this year.

Many top gaming stocks have underperformed relative to the broader market in recent years, and most of the M&A activity has been facilitated by private equity and other institutions that can more readily capitalise on depressed valuations. There had been hope that rates would start to fall and help alleviate those pressures.

“Publicly traded valuations are a reflection of the current interest rate environment,” Chad Beynon, lead gaming analyst for Macquarie, told iGB. “Whether it’s a long-term financial model on a growth company, you’re going to discount that back at a higher rate, or if it’s just a standard four-wall business, the cash flows in a higher interest rate environment are worth less.”

How to play Primate King

David, at the time, said she was “optimistic but prudent” about Entain’s Q1 performance.  

Numbers have remained steady a year on, and in H1 this year, various markets were hailed as core growth drivers for the business, including Australia, New Zealand, Spain and the UK.

Meanwhile, cost-saving efforts have seen retail shops and operational roles cut this year. And the group has chosen to exit its CEE business and sell off a significant share.

What is Primate King?

“The legislation mandated the regulation of the sector, which did not happen in the previous administration,” he explained. “We came into government with the sector operating for almost five years.

“We saw that they had entered football and advertising, and they have political and economic weight. Understanding that Congress would not prohibit the activity, we decided to put the brakes on and establish the rules.

“It’s not that I want to collect taxes because I need the money. I want to collect taxes for the sake of fairness: if a company sells cars, it pays taxes; if it sells drinks, it pays taxes. If it’s authorised to operate, it has to pay.”