Nov 4, 2020
Sports betting stocks rally after U.S. states back legalization
Markets on edge as U.S. election results too close to call
Companies that offer online sports gambling like DraftKings Inc., Penn National Gaming Inc., and Flutter Entertainment Plc rallied Wednesday morning after a trio of states voted in favour of ballot measures aimed at legalizing sports betting and other gaming expansion.
Maryland voted to legalize sports and event betting at certain facilities, while South Dakota backed a proposition that would allow legal sportsbooks in the region that’s home to its casinos as early as next year. Louisiana approved a proposition that cleared a hurdle to allow sports betting. The trifecta of wins added to investor optimism in the growing industry’s potential to rake in billions more in revenue.
DraftKings was the biggest outperformer, as it rallied as much as 4.6 per cent premarket. The gains were spread across the industry, with Penn National shares rising 3.2 per cent. Flutter Entertainment, the owner of FanDuel, is on track for a record close in London after rising as much as 2.4 per cent. The Roundhill Sports Betting & iGaming ETF, commonly-known by its ticker BETZ, is indicated to trade higher after posting its best day in more than a month on Tuesday.