DKNG Shows Sports Betting Is Back, But This Time With Wall Street Flair

Baseball is back, with a deal for a 60-game season just announced. Professional golf is back. Nascar has been back for several weeks. Professional tennis, though off to a rocky start, is back. And, sports betting is back.

Which means companies like DraftKings (DKNG), which runs an online sports betting platform, is back in business.

Online gaming companies were left for dead when the COVID-19 pandemic hit. As sports league after sports league announced season-ending closures, there was no betting to be done.

But as sports shut down, and sports commentators and writers were left in limbo, an interesting thing happened. Some, including the more social media-famous Dave Portnoy, took to “betting” on stocks.

Portnoy, who is the founder of Barstool Sports, has used the stock market as a marketing tool, drawing millions of followers to his social media accounts with his battle cry of “Stocks only go up.” The entertaining, self-described sports bettor, can lose hundreds of thousands of dollars in a single trading session, all to the amusement of his social media followers.

What Portnoy—who once was closely associated with DraftKings, and now works as a “complete sell-out” (his words) for Penn National Gaming (PENN) since its acquisition of Barstool Sports in January—has done is build an even bigger audience for sports betting when it returns.

The pent-up demand for sports betting, combined with some expert marketing from sports betting stalwarts like Mr. Portnoy, could lead to outsized gains for the sports betting stocks.

DraftKings, which went public recently as a special purpose acquisition company (SPAC) has been moving higher in recent months in anticipation of sports returning. But the company isn’t just resting on its sports-betting laurels.

On Tuesday, the company announced a new casino gaming app for customers in New Jersey. Jason March, DraftKings’ VP of Gaming said, “We are thrilled to break new ground for DraftKings in the gaming space today with the launch of our DraftKings Casino app, the Company’s first perennial product that operates year-round, irrespective of the annual sports schedules.”

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