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. /zigman2/quotes/213120645/composite DKNG -6.18% plummeted 26.4% in November, drastically underperforming a roughly 1.03% drop from the S&P 500 /zigman2/quotes/210599714/realtime SPX -2.01% 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 /zigman2/quotes/204413973/composite Z -2.59% and Virgin Galactic /zigman2/quotes/208333884/composite SPCE -5.27% , DraftKings joined MarketWatch’s list of stocks that are down at least 50% from their 2021 highs .
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DraftKings is down 32.68% YTD.
Penn National Gaming
Shares of Penn National Gaming Inc. /zigman2/quotes/209264611/composite PENN -1.64% 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.”