Investor Alert

Dec. 3, 2021, 12:43 p.m. EST

Penn National, DraftKings highlight November slump for sports betting stocks

By Weston Blasi

Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, sports-betting companies have surged in popularity. In response, sports betting companies have begun jockeying for customers in a “ gold rush ” style of competition.

As of the end of November, 30 U.S. states, as well as Washington, D.C., offer some form of legalized sports wagering, according to the  American Gaming Association .

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Many sports-betting operators are also publicly held companies, and some have non-sports betting aspects of their business, like entertainment and casino operations.

Here is how sports-betting stocks performed in November:


Shares of DraftKings Inc. (NAS:DKNG) plummeted 26.4% in November, drastically underperforming a roughly 1.03% drop from the S&P 500 (S&P:SPX) over the same period.

DraftKings is coming off a rough October that saw more losses for its stock price.

During the company’s third-quarter earnings report, the Boston-based sports betting company posted widening losses and revenue that missed forecasts .

“On a same state basis and taking into consideration lower than expected hold primarily due to NFL game outcomes, third quarter revenue would have been $40 million higher,” the company stated .

Along with Zillow (NAS:Z) and Virgin Galactic (NYS:SPCE) , DraftKings joined MarketWatch’s list of stocks that are down at least 50% from their 2021 highs .

See also: DraftKings stock price target cut nearly 30% at Benchmark as valuation is ‘rationalized’

DraftKings is down 32.68% YTD.

Penn National Gaming

Shares of Penn National Gaming Inc. (NAS:PENN)  sunk 28.9% in November after a tumultuous month.

On Nov. 4, Penn National lost $2.69 billion in valuation after an earnings miss, the most the gambling company has lost from a stock decline in its 27-year history on the public markets, according to Dow Jones Market Data.

Additionally, allegations emerged against Dave Portnoy, founder of Penn-owned Barstool Sports, detailing occasions where he was aggressive and rough with women. According to the story from  Business Insider , one woman who had intimate relations with Portnoy said she felt like she was a “human sex doll.” Another woman said she fought mental health issues like depression after their encounter.

Portnoy denied many of the allegations, calling them “jarring,” before adding that “cancel culture has been coming for me for a decade.”

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Penn was also not chosen as an approved sports betting operator by the New York State Gaming Commission , and therefore cannot accepts legal wagers in the state.

Penn National Gaming is down 44.5% YTD.


Shares of Caesars Entertainment Inc. (NAS:CZR)  dropped 17.9% in November, joining other slumping sports betting stocks.

Caesars did get some good news however when it was selected as one of the nine approved sports betting operators in New York .

The New York State Gaming Commission also approved sports betting licenses for DraftKings, FanDuel, Bally Sports (NYS:BALY) , BetMGM, PointsBet, WynnBet, Kambi and Resorts World.

Caesars is up 13.92% YTD.


Shares of Wynn Resorts Ltd. (NAS:WYNN)  dropped 9.9% in November amid news of the new Omicron variant of the coronavirus.

Wynn’s robust in-person casino business could be impacted by any new restrictions related to further outbreaks of COVID-19, especially in the tourist-heavy Las Vegas. Such volatility in the company’s stock was apparent in the early stages of the COVID-19 pandemic in 2020 .

See also: CDC isn’t changing fully vaccinated definition to include boosters ‘right now’

As stated above, Wynn’s online gaming organization WynnBet was recently approved for a sports betting license in New York.

Wynn is down 31.29% YTD.


Shares of MGM Resorts (NYS:MGM)  dropped 16.56% in November after reporting a surprise profit for the company’s third quarter .

MGM also recently stated it intended to sell operations of The Mirage hotel and casino on Las Vegas Strip.

“We are committed to continuing to maintain and develop our existing Las Vegas portfolio with no plans for other changes on the Strip at this time,” Chief Executive Bill Hornbuckle said in a letter to employees. 

MGM Resorts is down 23.61% YTD.

The NFL season is one of the busiest times of the year for U.S. sportsbooks, and many states including  Virginia  and  New Jersey have already set state betting records.

The Roundhill Sports Betting & iGaming ETF (PSE:BETZ) , a tier-weighted index of global sports-betting & iGaming companies, is down 26.06% over the past three months, compared with the S&P 500, which is up 0.66% over that same period.

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