DraftKings, Penn National —how sports-betting stocks performed in March

- Advertisement -


Since the United States Supreme Court struck down the ban on sports betting in 2018, sports wagering is now legal for more Americans than ever.

- Advertisement -

As of the end of March 2022, 30 US states and Washington, DC now offer some form of legalized sports betting, according to the latest tally from the American Gaming Association, And New York recently set the monthly sports betting record of $1.6 billion wagered in just three weeks.

- Advertisement -

Many sports-betting companies are also publicly traded companies, and some include non-sports betting assets in their business portfolios, such as casinos or entertainment properties.

This is how those sports-betting stocks performed in March:

- Advertisement -

See Los Angeles to give $1,000 in ‘guaranteed income’ to 1,000 residents — here’s how it works

DraftKings

Shares of DraftKings Inc. DKNG,
-1.39%
dropped 16.4% during March, while the S&P 500 SPX,
-0.08%
was up 4.2% over the same period.

The company’s CEO Jason Robins tweeted on March 8 that people who are souring on DraftKings’ stock are making a terrible mistake.

“If you sold #DKNG today, just be aware that my team and I are on a mission to make you regret that decision more than any other decision you’ve ever made in your life,” Robins wrote on Twitter TWTR,
+1.86%,

Robins put this message out as the company’s stock continued its recent plunge. DraftKings stock was trading at near the company’s two-year-low at the time of the tweet.

During a recent DraftKings earnings call, the company disclosed that Robins’ total compensation in 2021 was $14.03 million, down from $236.83 million in 2020.

Penn National Gaming

Shares of Penn National Gaming Inc. PENN,
-0.73%
moved 17.1% lower in March, continuing a slumping month for sport betting stocks.

Penn National and various other sportsbooks are likely to get betting handle boosts in March due to the betting popularity of the March Madness men’s and women’s basketball tournaments. The 2022 men’s tournament is likely to be the biggest sports betting event in US history as a total of $3 billion is expected to be legally wagered on the tournament, according to estimates from PlayUSA, doubling totals from 2021.

The Wall Street Journal reported in March that gambling regulators in Nevada and Indiana “are looking into Barstool and Penn National” after sexual-misconduct allegations against Barstool founder Dave Portnoy emerged. Penn National owns a controlling stake in Barstool Sports.

Portnoy has denied the allegations and says he has filed a defamation lawsuit against Insider Inc., the company that published articles detailing stories from Portnoy’s accusers.

See Bracket busted? See whether you committed these common mistakes on your March Madness bracket.

Barstool may have issues getting betting licenses in more states as gambling regulators adopt and implement policies to prevent harassment, “particularly with regard to women,” Becky Harris, a former chairwoman of the Nevada Gaming Control Board told WSJ,

Other sports betting news

The Flutter-owned FLTR,
-1.40%
FanDuel sportsbook was the No. 2 sportsbook in New York state during its first legal month of online betting, according to PlayNY, trailing only Caesars CZR,
+0.49%,
That momentum for Caesars seems to have subsided as FanDuel is now the top sportsbook in the state, according to data from the New York Gaming Commission.

Part of Caesars’ early success in New York state was perhaps partially due to extremely generous deposit-matching promotions, something that rival industry executives privately called out as unsustainable, according to industry sources.

In more sports betting news, NFL star wide receiver NFL player Calvin Ridley will be suspended one year for betting on NFL games. Ridley bet a total $1,500 on NFL games, and may lose his $11 million salary in 2022. Players and team personnel are forbidden from betting on games, even if wagering is legal in their state.

The Roundhill Sports Betting & iGaming ETF BETZ,
+0.60%,
a tier-weighted index of global sports betting & iGaming companies, fell 7.19% in March.

,

Credit: www.marketwatch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox