October Sports Betting Stocks Down for DraftKings, Caesars
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Ever since 2018, sports betting has gone from a niche curiosity to a cultural phenomenon in the eyes of the public. That year, the Supreme Court overturned the Professional and Amateur Sports Protection Act, getting the wheels turning for the legalization of sports betting. Since then, more and more states have been embracing legal sports wagering, with some recent examples being Arizona, Connecticut, and even a soft launch for Florida. Because of this popularity, the investing angle on sports wagering has been fascinating to watch. Let’s take a look at some of the stock market shifts the most popular sportsbooks saw in October of this year.
Stock Drops on Major Sportsbooks
The expectations are high on the big sportsbooks out there, which makes their underperforming stocks a bit surprising. DraftKings saw a 7.85% drop in the market through the month of October. This is especially interesting due to the company’s recent partnership with the National Hockey League. Additionally, the sportsbook recently stepped back on their attempted $22 billion acquisition of the betting-focused U.K. company Entain. Penn National Gaming, Inc. saw an 8.9% October drop as well, with Caesars Sportsbook close behind with an 8.39% dip in numbers. Penn National recently acquired theScore (also known as Score Media and Gaming Inc.) for a $2 billion mix of stock and cash assets.
MGM and Wynn See Stock Market Bump
However, not every sports betting entity saw a drop in the stock market last month. MGM Resorts, the company responsible for the popular BetMGM sports betting platform, saw a 5.12% jump in October stocks. Meanwhile, Wynn, who launched the WynnBET app last year and has been persistent in its advertising efforts, saw a similar upward trend with a 2.96% jump in the month of October.
The Ongoing Battle for Sports Betting Supremacy
The news of these fluctuating stocks highlights the raging battle better a growing number of sportsbooks for more market share. The major players are all there, with DraftKings, FanDuel, Caesars Sportsbook, and BetMGM responsible for a major chunk of the user market. However, that’s only the tip of the iceberg when it comes to sports wagering. Platforms such as BetRivers, WynnBET, and PointsBet have all gained fans of their own thanks to aggressive advertising and enticing promotions. Meanwhile, new sportsbooks continue to add to the competition, as seen with the recent launch of platforms such as the Sports Illustrated Sportsbook and MaximBet, as well as the anticipated rollout of Fubo Gaming.
Plenty of other companies involved in sports betting have gotten attention from potential stockholders as well. Before the launch of the NFL season, companies such as Bally’s, Churchill Downs, and Rush Street Interactive were highlighted as potential investments in the media. Sports betting is here to stay, so these stocks are likely to continue fluctuating for years to come. With more sports betting legalization ahead, and more companies launching their own sportsbooks, it will be interesting to see how the investing world continues to react.
