Shares of fantasy sports and sports betting app DraftKings (NASDAQ:DKNG) jumped 9% at the market open today, and are up more than 5% as of 11:25 a.m. EST. Sports betting ballot initiatives were passed in three more states in yesterday's election.
The approvals bring the total to 21 states and Washington, D.C., where sports betting is legal in the U.S.
Voters in Maryland, Louisiana, and South Dakota are the latest to legalize in-person and/or online sports betting in their states.
As more states legalize sports betting, the line between online betting and retail sportsbooks is getting blurred. DraftKings and competitor FanDuel have been increasing partnerships with brick-and-mortar casinos to expand offerings.
DraftKings now has casino partners in eight states. It also has an agreement with Turner Sports, giving it the rights to display its fantasy sports and sports betting content on select Turner Sports and Bleacher Report television programs.
DraftKings has been a popular growth stock since its IPO in April 2020, even though the COVID-19 pandemic has limited sporting events significantly. Its shares have more than doubled since that time.
The continued wave of states allowing sports betting could result in a $58 billion market, when you include online casino gambling, according to Needham analyst Brad Erickson. Besides FanDuel, DraftKings competitors include MGM Resorts International and Penn National Gaming, both of which combine online apps with a physical casino presence.