• General
  • July 28, 2020
  • 3 minutes read

DraftKings Stock Falls After MLB Delay

DraftKings CEO Jason Robins. Photo credit: Steve Jennings/Getty Images for TechCrunch, under Creative Commons license Shares of sports betting company DraftKings…

DraftKings CEO Jason Robins.

Photo credit: Steve Jennings/Getty Images for TechCrunch, under Creative Commons license

Shares of sports betting company DraftKings closed down 6.48% on Monday after the Major League Baseball league delayed two upcoming games due to the coronavirus pandemic. Over the weekend, DraftKings said the MLB was the most popular sport in its sportsbook and that it recorded its second-best day since the March shutdowns began. As many leagues have postponed games, the MLB has been an exception, with ongoing sports games but without the usual swath of spectating fans.

Earlier Monday, Major League Baseball delayed the Philadelphia Phillies’ game against the New York Yankees and the Miami Marlins game against the Baltimore Orioles. The delay came after more than a dozen members of the Miami Marlins team tested positive for Covid-19, according to AP News. With MLB currently DraftKings’ most popular sport, investors seem to be generally of the sentiment that the games’ delay could affect the company’s business. DraftKings went public in April of this year and has fared well on the markets. The company currently (as of writing) sports a market capitalization hovering around $12.4 billion.

Although already big, DraftKings still has more potential, as sports betting is only legal in 7 out of 50 states in the US. Although the company’s business has been sizeably affected by the coronavirus pandemic, it says it expects pent-up demand as sports games across the U.S. begin to return.




Leave a Reply

Your email address will not be published. Required fields are marked *