Market Overview

Investors Win Big On DraftKings After Stock's 15% Rally

Investors Win Big On DraftKings After Stock's 15% Rally

In a big bounce-back day for the overall markets, investors continued to take a gamble on DraftKings Inc (NASDAQ: DKNG).

3 Big Betting Trends The rally in the online sports betting website's stock is in part attributed to an encouraging webinar its CEO Jason Robins hosted on Friday. The CEO highlighted three encouraging trends to support the long-term sports betting industry, according to Legal Sports Report:

  • States that haven't yet legalized sports betting could choose to do so as it represents a new revenue stream for the government.
  • The general public is showing an interest in betting on non-sporting events. In fact, DraftKings is seeing a strong interest in people betting on TV shows like "The Bachelor." Sports-themed betting is also gaining in popularity, such as people betting on video game simulations.
  • The American public could turn to online betting to replace real-life parties and get-togethers.

More Gambling Opportunities In a separate interview with Barron's, Robins highlighted a shift in focus whereby the sports betting company will offer more in-game betting opportunities.

Taking a look at the United Kingdom, around 75% of revenues come from in-game wagering versus the U.S. market where it is "much lower."

"You can bet on almost anything in an EPL (English Premier League soccer) game including who will get the next yellow card," he told Barron's. "Arguably, U.S. sports like baseball are better built for this."

The stock closed Tuesday's session higher by 14.7% at $33.39 per share. The stock was trading under $20 a share as recently as April 30.

Related Links:

DraftKings CEO Calls Esports A 'Huge Growth Area'

Analyst Likes DraftKings As Public Embraces Legal Sports Betting

Photo credit: World Poker Tour, Flickr


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