The individual value of stocks in some of the largest online sportsbetting operators in the United States including DraftKings Incorporated and Penn National Gaming Incorporated have reportedly taken a hit over the course of the last few months.
According to a Thursday report from the financial information website at MarketWatch.com, some form of sportsbetting is now legal in 30 American states as well as the District of Columbia following the United States Supreme Court’s 2018 revocation of the Professional and Amateur Sports Protection Act (PASPA). The source detailed that multiple companies subsequently capitalized on this ruling and began jockeying for a prominent position within an embryonic market showing year-on-year growth and healthy revenue figures.
Displeasing direction:
However, this boom time could now be coming to an end as industry preeminent DraftKings Incorporated reportedly emerged from the third quarter showing a widened loss and missed revenue forecasts. The Boston-headquartered firm purportedly also had a rough October and November with the value of its shares having plummeted by 26.4% last month alone to now stand some 32.68% down on a year-on-year basis.
Reportedly read a statement from DraftKings Incorporated…
“On a same-state basis and taking into consideration lower than expected hold primarily due to National Football League (NFL) game outcomes, third-quarter revenues would have been $40 million higher.”
Acute allegations:
For its part and Penn National Gaming Incorporated, which is responsible for the Barstool Sports online sportsbetting brand, reportedly saw the price of its shares sink by 28.9% in November after a tumultuous month in which its valuation decreased by $2.69 billion owing to an earnings miss. This deflation was purportedly the largest in the 27-year history of the Wyomissing-headquartered enterprise and came at the same time as bullying claims emerged concerning company big-wig Dave Portnoy (pictured).
MarketWatch.com reported that Portnoy, who helped to establish the Barstool Sports service, was alleged to have been aggressive and rough towards female employees although the executive subsequently described such accusations as ‘jarring’ before going on to add that ‘cancel culture has been coming for me for a decade’. The source explained that Penn National Gaming Incorporated moreover missed out on the race to secure an online sportsbetting license for New York with its share price currently down by 44.5% year-on-year.
Singular success:
For its part and Caesars Entertainment Incorporated, which runs the mobile-friendly Caesars Sportsbook-branded online sportsbetting service, reportedly experienced a November in which the value of its shares declined by 17.9%. The Las Vegas-headquartered operator did nevertheless get some good news last month when it managed to secure a New York license with its stock valuation currently up by 13.92% year-on-year.
Coronavirus comedown:
Elsewhere and MarketWatch.com reported that Wynn Resorts Limited, which operates the WynnBet sportsbetting service, saw its valuation drop by 9.9% last month largely owing to fears over the new Omicron variant of the coronavirus pandemic. The Nevada company purportedly has shares that are down by 31.29% year-on-year despite having recently joined Caesars Entertainment Incorporated in obtaining a potentially-lucrative license to operate in New York.
Profound pledge:
Finally, the source reported that shares in MGM Resorts International posted a 16.56% drop in November despite the company having chalked up a surprise third-quarter profit. This Las Vegas-based firm runs the BetMGM service in partnership with British iGaming behemoth Entain and purportedly has a valuation that is down by 23.61% year-on-year despite recently announcing plans to sell off its interest in the ageing Mirage Las Vegas venue.
Reportedly read a statement from Bill Hornbuckle, Chief Executive Officer for MGM Resorts International…
“We are committed to continuing to maintain and develop our existing Las Vegas portfolio with no plans for other changes on the Las Vegas Strip at this time.”