- FuboTV’s stock price went up by 35% just by announcing their intent to launch a sportsbook in 2021.
- DraftKings, Penn National Gaming, and MGM Resorts have all seen growth on the stock market as a result of their sports betting efforts.
- Many companies see positive effects on stocks when they ally themselves with sports betting operations.
NEW YORK – Sports betting has continued to prove to be a lucrative business for investors and major corporations. Those who invest in legal sports betting have seen an increase in the company’s overall value in recent years.
FuboTV has seen this and has moved to launch its own sports betting operation before the end of 2021. The company already supplies sports betting content via its live TV streaming service.
In addition, many sportsbooks that have gone public have seen steady growth in value on the stock market. Sports betting companies like MGM Resorts, Penn National Gaming, and DraftKings have all seen stock values rise aligned with legal sports betting expansions.
Sports Betting Brings Company Growth
FuboTV saw the benefits to sports betting early on, launching a sports betting network just a few months back. Following this, the company saw major growth in the stock market.
The popular streaming service saw this as a sign that sports betting is indeed the way of the future. Now FuboTV is looking to double down and launch a sportsbook sometime this year, purchasing Vigtory sportsbook in the process.
“We believe online sports wagering is a highly complementary business to our sports-first live TV streaming platform,” said David Gandler, co-founder and CEO, fuboTV. “We don’t see wagering as simply an add-on product to fuboTV. Instead, we believe there is a real flywheel opportunity with streaming video content and interactivity. Our free to play gaming experience, which will be available to all consumers, will build further scale to fuboTV, essentially acting as another lead generator for driving subscribers to our streaming video platform and, ultimately, our sportsbook. We not only expect sports wagering to become a new line of business and source of revenue, but we also expect that it will increase user engagement on fuboTV resulting in higher ad monetization, better subscriber retention and reduced subscriber acquisition costs.”
FuboTV’s shareholders were clearly in support of this decision, as shortly after the announcement of the potential sportsbook, fuboTV saw a 35% climb in share prices in only two days.
While Vigtory is currently only licensed in Iowa, fuboTV is looking to use the technology from Vigtory to expand into multiple sports betting markets. With more states legalizing sports betting constantly, the market continues to grow.
This continued growth has shareholders and major companies excited, which explains why fuboTV saw such a massive boom in stock prices despite not having a clear date for the launch of the sportsbook.
FuboTV isn’t the only entity to see major growth due to sports betting.
MGM Resorts stock increases every time their BetMGM Sportsbook launches in a new market, Penn National Gaming has seen a major increase in value following the launch of the Barstool Sportsbook, and DraftKings Sportsbook sees continued growth on the stock market after going public.
Investors Love Sports Betting
DraftKings in particular is a prime example of the power sports betting has on the stock market and investors. The sportsbook went public in April of 2020 and immediately saw heavy increases in share prices.
The popular sportsbook opened at $19.35 a share when it first went public last April. As of January 2021, the company is valued at $53.60. In less than a year the company has seen a 277% increase in stock value.
DraftKings is not alone in this success either.
Penn National Gaming launched its Barstool Sportsbook in 2020. The company’s shares have boomed massively, now valued at over $100 per share surpassing many established sports betting entities.
Barstool Sportsbook used its strong Barstool Sports brand as a way to claim a major stake in the market, and many investors are jumping onto the wave early.
Sports betting has proven to be a winning racehorse, and investors have shown great interest. This interest from investors pulls into companies as well, as major corporations invest heavily into sports betting partnerships which also raise the company’s stock value.
Companies Benefit From Sports Betting
Walt Disney, one of the biggest companies in the world and owner of ESPN has mentioned investing more into sports betting in the future during a recent share holders meeting.
The fact that one of the biggest corporations also sees the benefits of legal sports betting is further proof that the market is expected to see continued growth.
The collaborations between sports betting entities and corporations have proven to be mutually beneficial as well, with the sports betting operations seeing increases in their own share prices after partnering with big companies.
Caesars Entertainment saw a 9% stock increase after partnering with ESPN. Caesars Sportsbook is operated by William Hill.
The sports betting market is projected to reach $8 billion by 2025 and everyone seems to want to get a slice of the sports betting pie.
As more states legalize sports betting in their legislation, more sportsbooks will expand into their markets which will lead to increases in share prices and more investments.
It seems that wagering on the success of legal sports betting is truly a good bet.
News tags: Barstool Sports | Barstool Sportsbook | DraftKings | FuboTV | GNOG | LSB Feature | MGM Resorts | Nasdaq | New York | Penn National | Scott Butera | sports betting | Stocks | Tilman Fertitta
Coming from a background in narrative-based writing, Giovanni strives to write stories that will keep the reader engaged. Although he does pride himself in being accurate, how the story is told is also very important to him. When he’s not keeping readers up to date on sports betting laws and legislation, you can find him writing and recording music, playing videogames, or engaged in heated sports debates with his friends.