By Weston Blasi
Twenty-nine U.S. states, plus Washington, D.C., offer some form of legalized sports betting
Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act in 2018, sports-betting companies have boomed in popularity.
As of the end of October, 29 U.S. states, plus Washington, D.C., offer some form of legalized sports betting, according to the American Gaming Association. Sports betting companies in those states are constantly competing for customers by offering in-person sportsbook experiences, betting capability for nearly every sport and mobile wagering.
Many sports-betting operators are also publicly held companies. Some of these companies have non-sports betting aspects of their business, like entertainment and casino operations.
Here is how sports-betting stocks performed in October:
Shares of DraftKings Inc. (DKNG) dropped 7.85% in the month of October, underperforming a roughly 5% gain from the S&P 500 over the same period.
On Oct. 13, DraftKings and the National Hockey League (NHL) agreed on a deal that would make DraftKings an official sports betting and daily fantasy partner of the league. DraftKings also announced it would be the official betting and daily fantasy partner of Turner Sports' hockey coverage.
"The NHL has some of the most passionate fans in all of sports and we are delighted to be working with the league once again, while developing a rich and engaging viewership and content experience that matches this fanbases' enthusiasm through our deal with Turner," DraftKings Chief Executive Jason Robins said in a statement.
DraftKings also launched mobile betting in Connecticut and is reportedly in talks to purchase the sports media company The Athletic.
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Shares of Caesars Entertainment Inc (CZR). dropped 8.39% in October ahead of the company's third quarter earnings report.
"We are encouraged by the early results from our rebranded Caesars Sportsbook launch and we are looking forward to launching additional states by year end and into 2022," Chief Executive Tom Reeg recently said in a statement.
Penn National Gaming
Shares of Penn National Gaming, Inc. (PENN) dropped 8.9% in October ahead of the company's third quarter earnings.
Penn also completed its acquisition of Score Media and Gaming Inc., also known as theScore, for $2 billion in cash and stock. Penn National is aiming to be a "one-stop entertainment destination," according to the press release -- theScore is the third most popular sports media app in Canada, according to the release.
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Shares of Wynn Resorts Ltd (WYNN) went up 2.96% in October,
On Oct. 21, Wynn Resorts' stock price target was cut by UBS to $101 from $119.
Earlier this year, Wynn's online gaming organization WynnBet reached an agreement with the NFL to become an approved sports-betting operator for the league.
Shares of MGM Resorts (MGM) increased 5.12% in October as they were upgraded to Outperform from Neutral at Credit Suisse
Analyst Benjamin Chaiken said the market isn't giving MGM full credit for its "transformation" in 2021.
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The NFL season is one of the busiest times of the year for U.S. sportsbooks, as no sport has more bets placed on it than football. Many states, including Virginia, Colorado and New Jersey, have already set state betting records.
The Roundhill Sports Betting & iGaming ETF (BETZ), a tier-weighted index of global sports-betting & iGaming companies, is up 9% over the past three months, compared with the S&P 500, which is up 5.26% over that same period.
(END) Dow Jones Newswires
11-04-21 1135ETCopyright (c) 2021 Dow Jones & Company, Inc.