Online sports gambling is a home run, but not yet with investors
CBSN
Betting on sports online has proved to be a big hit with Americans as more states legalize it, with gamblers smashing records on the Super Bowl and March Madness. But one group has so far proved more skeptical: investors.
The stock prices of leading sports betting companies have slumped despite the betting boom, raising questions about how quickly the public's enthusiasm for online betting will translate into fatter profits for the businesses behind all that gambling action.
Over the last 12 months, DraftKings shares have tumbled 73%, to $18.20 on Friday — below the $20 the stock traded at when the company went public in April 2020. Shares of FanDuel-parent Flutter Entertainment are down 47% over that time period, while Caesars Entertainment's stock price is off 5%.
