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Coronavirus stock Sports betting platform DraftKings plunges 13% after COVID outbreak halts MLB games


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Coronavirus stock Sports betting platform DraftKings plunges 13% after COVID outbreak halts MLB games

Katelyn Mulcahy/Getty Images Sports betting platform DraftKings stock sank as much as 12.8% on Monday after a coronavirus outbreak in the Miami Marlins baseball team delayed some Major League Baseball games. The MLB was the first major US sports league to resume activity when its season began on Thursday. The league postponed a game between…

Coronavirus stock Sports betting platform DraftKings plunges 13% after COVID outbreak halts MLB games

Coronavirus stock

coronavirus stock Dodgers MLB stadium emptyKatelyn Mulcahy/Getty Images

  • Sports betting platform DraftKings stock sank as much as 12.8% on Monday after a coronavirus outbreak in the Miami Marlins baseball team delayed some Major League Baseball games.
  • The MLB was the first major US sports league to resume activity when its season began on Thursday.
  • The league postponed a game between the Marlins and the Baltimore Orioles after The Athletic reported four Marlins players took part in a Sunday game after testing positive for COVID-19.
  • A game between the New York Yankees and the Philadelphia Phillies — the Marlins’ Sunday opponent — was also postponed.
  • Watch DraftKings trade live here.

Shares of sports gambling platform DraftKings tanked as much as 12.8% on Monday after a new coronavirus outbreak led Major League Baseball to postpone two games.

The 2020 MLB season is among the few sports calendars relatively intact amid the coronavirus pandemic. Games began on Thursday after delays related to testing and implementing strict safety measures for players and staff.

Yet the season could end just days after beginning after the Miami Marlins played a game on Sunday despite four players testing positive for COVID-19, according to The Athletic. The league has since canceled the Marlin’s Monday game against the Baltimore Orioles. Monday’s game between the New York Yankees and Philadelphia Phillies, who played the Marlins on Sunday, was also postponed.

“The members of the Marlins’ traveling party are self-quarantining in place while awaiting the outcomes of those results,” MLB said in a statement.

Read more: Millions in profits and 5429 units: Here’s why Ryan Gibson is going all-in on storage unit investing after years of flipping homes — and the strategy he’s using to capture the booming trend

The delays pose a serious risk for DraftKings and its hopes for a sports-betting resurgence. The firm went public in late April through a $3.3 billion merger with special-purpose acquisition firm Diamond Eagle, well before any major US sports leagues resumed activity. Yet shares more than doubled in the months following as investors bet on economic reopenings and containment of the virus to revive sports and related betting businesses.

“While our business in the short term is partially dependent on the sports calendar, we have always said we are playing the long game and will continue our focus on driving a technology first approach to product innovation in order to keep sports fans engaged,” a DraftKings spokesperson told Business Insider.

Even if major sports are delayed further, the company has shown it can pivot to other betting ventures. Entries on the company’s fantasy esports contests skyrocketed 50-fold in March as customers started to brace for months without sports. DraftKings also allowed users to bet on virtual matches taking place in popular games including Madden NFL. 

DraftKings traded at $34.74 per share as of 12:40 p.m. ET Monday.

Now read more markets coverage from Markets Insider and Business Insider:

Tech stock rally is far from repeating the 1990s dot-com bubble, SunTrust says

Gold prices can soar to a record $2,000 on inflation fears and safe-haven demand, analyst says

Warren Buffett’s $800 million bet on Bank of America is almost a guaranteed winner, Berkshire Hathaway investor Bill Brewster says

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