Endeavour Group (ASX:EDV) is gaining gaming market share in Victoria as electronic gaming machine (EGM) spending in Victoria and Queensland remains resilient despite moderating from recent peaks, Jefferies said in a note on July 24.

Jefferies said the recent moderation in EGM spending is not enough to signal weakening consumer demand, as it may simply reflect tougher year-ago comparisons, with a clearer trend expected to emerge over the coming months.

The research firm estimates the company outperformed the Victorian market in fiscal 2026, with gaming revenue across its tracked 77 venues rising 6.7% year over year, lifting market share 27 basis points to roughly 25%.

It added that Queensland's EGM spending outpaced Victoria's, with fiscal 2026 expenditure estimated to have risen 8.1%, supported by June gaming revenue growth that lifted full-year hotel and club revenue 7.3% and 9.2%, respectively.

Jefferies cautioned that retail sales growth is likely to remain below underlying cost inflation for the foreseeable future, despite the resilience in the company's gaming business and improvements in its retail operations.

Jefferies maintained its hold rating and AU$3.20 per share price target on Endeavour Group.

Endeavour Group's shares added about 1% in recent Monday trade.