July 6, 2022, 12:03 p.m. EDT

Sports betting stocks: How companies like DraftKings, Caesars performed in June

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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 seen huge interest.

As of the end of June 2022, 30 states plus Washington, D.C. now offer at least some form of legalized sports wagering, according to the latest tally from the  American Gaming Association .

See also: Joe Rogan says he turned down Trump as podcast guest: ‘I don’t want to help him’

In the four years since legalization,  Americans have wagered over $125 billion on sports  as betting transformed from a  taboo topic on sports television to commentators openly discussing gambling odds before and during games.

Several sports-betting operators are also publicly traded companies, and some include non-sports betting assets in their business portfolios, such as casinos or entertainment properties.

Here is how those sports-betting stocks performed in June:

DraftKings

Shares of DraftKings Inc. /zigman2/quotes/213120645/composite DKNG +0.63% dropped 18.16% in June, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.40%   was down 9.37% over the same period.

The state of California confirmed on June 27 that a sports betting measure would be on the November ballot in the state. The measure, which is supported by DraftKings, FanDuel and several other operators and will be voted on by Californians, would legalize online sports betting in the most populous state in the country.

The proposal would stipulate 85% of the tax revenue from sports betting in the state would go to homelessness and mental health, something leaders including DraftKings CEO Jason Robins has pushed for .

See also: California is sending ‘inflation relief’ checks up to $1,050 — here’s who qualifies

On June 28, JMP analyst Jordan Bender said he believes DraftKings will move higher than the overall market in the near future after he issued a Market Outperform Rating to the sports betting giant.

“For DKNG, iGaming is the obvious cross-sell,” Bender said , touting the company’s iGaming products like Spanish 21 and blackjack.

DraftKings is down 77.47% over the past 12 months.

Caesars

Shares of Caesars Entertainment Inc. /zigman2/quotes/205281174/composite CZR +0.08% plummeted 26.16% in June.

Caesars is one of several approved sports betting operators in New York state, which in recent months has become the top state in terms of total sports betting, according to data compiled by  LegalSportsReport .

/zigman2/quotes/213120645/composite
US : U.S.: Nasdaq
$ 20.80
+0.13 +0.63%
Volume: 21.00M
Aug. 15, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$17.37 billion
Rev. per Employee
$461,628
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,297.14
+16.99 +0.40%
Volume: 2.22B
Aug. 15, 2022 5:46p
loading...
/zigman2/quotes/205281174/composite
US : U.S.: Nasdaq
$ 51.41
+0.04 +0.08%
Volume: 2.17M
Aug. 15, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.01 billion
Rev. per Employee
$212,020
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