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Why DraftKings Stock Rose Today

By Joe Tenebruso – Jul 21, 2020 at 6:42PM

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Online sports betting could soar in the coming weeks.

What happened

Shares of DraftKings (DKNG 4.60%) climbed 6% on Tuesday, as investors eagerly await the upcoming return of professional sports. 

So what

In just a couple of days, Major League Baseball (MLB) is set to begin its 2020 season, with Opening Day set for July 23. The National Basketball Association (NBA) and National Hockey League (NHL) are also hoping to start their seasons on July 30 and Aug. 1, respectively, much to the delight of sports bettors.

A basketball court, baseball field, and sports arena.

DraftKings stock rose on Tuesday ahead of the upcoming start of the MLB, NBA, and NHL seasons. Image source: Getty Images.

DraftKings, as a leading sports gaming company, stands to benefit tremendously from the resumption of these and other major sports events.

Now what 

DraftKings has navigated the coronavirus pandemic well. Its revenue rose 30% in the first quarter, despite the cancellation of most live sports events. DraftKings has given bettors the opportunity to place wagers on other events, such as esports and mixed martial arts, which has helped offset the loss of other sports leagues.

With baseball, basketball, and hockey all set to resume games in the days ahead, analysts believe sports betting could soon hit record levels. That, of course, would be a boon for DraftKings.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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