• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Colorado
    • Illinois
    • Indiana
    • Kentucky
    • Louisiana
    • Maryland
    • Massachusetts
    • Michigan
    • New Jersey
    • New York
    • North Carolina
    • Ohio
    • Pennsylvania
    • Tennessee
    • Virginia
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel Sportsbook Promo Code
    • BetMGM Bonus Code
    • Bet365 Bonus Code
    • Caesars Sportsbook Promo Code
    • ESPN BET Promo Code
    • Fanatics Sportsbook Promo Code
    • BetRivers Promo Code
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Colorado
    • Illinois
    • Indiana
    • Kentucky
    • Louisiana
    • Maryland
    • Massachusetts
    • Michigan
    • New Jersey
    • New York
    • North Carolina
    • Ohio
    • Pennsylvania
    • Tennessee
    • Virginia
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel Sportsbook Promo Code
    • BetMGM Bonus Code
    • Bet365 Bonus Code
    • Caesars Sportsbook Promo Code
    • ESPN BET Promo Code
    • Fanatics Sportsbook Promo Code
    • BetRivers Promo Code
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Monthly Stock Watch: Sports Betting Stocks Extend 2022 Stumble In September

Leading stocks faltered last month, erasing optimism for a sustainable upward climb

Matt Rybaltowski by Matt Rybaltowski
October 5, 2022
in Industry
Monthly Stock Watch

Blundell Design

Share on FacebookShare on Twitter

Each month, our “Stock Watch” series examines recent trends inΒ sports bettingΒ equities across Wall Street and outside the U.S. on top global exchanges. The red-hot U.S. sports betting market is expected to grow to nearly $40 billion in annual revenue by 2033, according to Goldman Sachs. One prominent investment manager, Cathie Wood of Ark Invest,Β has taken a large position in DraftKings. She is not alone, as a wide range of institutional investors are bullish on sports betting. Come here early each month for a review of stock moves among the top publicly traded companies in the sports betting space.

Shortly after the start of the NFL regular season, a bevy of sports betting-related stocks experienced a bounce assuaging concerns among gaming investors about whether top industry names were ready to break out of the doldrums.

But with little sign that inflation is abating, stocks of leading companies in the sector moved lower in September, extending deep losses from earlier in the year. Three prominent companies — DraftKings, Flutter Entertainment, and MGM Resorts — fell several points on the month as broad macroeconomic factors outweighed any momentum from an encouraging start to the NFL season. More disconcertingly, some companies that had exhibited signs of emerging out of a bear market retreated again in the final weeks of the month.

DraftKings, for instance, closed September at $15.14 a share. It was down only fractionally on the month, but a late swoon sent it tumbling nearly 24% from its monthly high. While DraftKings is not in danger of testing 52-week lows of $9.77, it is still far below 12-month highs around $50.

U.S. equities have struggled over the past six months, with the leading indices down about 25% from their spring peak. Last week, Goldman Sachs’ Sentiment Indicator posted a negative reading for the 31st straight week, approaching a record for consecutive weeks in negative territory.

Commented on $US12M $SP500 $SPY – Goldman Sachs Sentiment Indicator comes in negative for a near-record 31st straight week. https://t.co/Ge2kyHj9Yd

— We Trade Setups πŸ“ˆ (@prosperousguy) October 4, 2022

At the U.S. Federal Reserve’s September Federal Open Markets Committee meeting, the Fed increased short-term interest rates by three-quarters of a percentage point, marking the third straight meeting that the U.S. central bank lifted rates by 75 basis points. The Fed also made projections that it would increase its benchmark interest rate to 4.6% by 2023. By employing a hawkish stance in aggressively lifting interest rates, the Fed is signaling that it is attempting to tamp down on the highest levels of inflation in more than four decades.

Sign Up For The Sports Handle Newsletter!
I also want to receive information and offers about online sportsbooks (eg. odds boost, welcome offers)

Shaun Kelley, a gaming analyst for BofA Global Research, estimates that higher rates would shave off about 5% of 2023 free cash flow for a litany of gaming companies across the industry. Among the companies covered by Bank of America are MGM Resorts, Caesars Entertainment, PENN Entertainment, and Boyd Gaming.

On a long-term basis, however, there is still optimism that the U.S. legal sports betting market has room for considerable growth. In a note released Tuesday, Spectrum Gaming Group identified key trends in the gaming industry to watch in 2023. While four additional states are about to launch legal sports betting, the industry still waits for California, Florida, and Texas to follow suit, Spectrum notes. The Big 3 represent approximately 25% of the nation’s population.

So the California sports betting battle is just the youngs vs the olds pic.twitter.com/RJm0jiVcK6

— Eric Ting (@_ericting) October 5, 2022

The nation’s three largest states are critical to the expansion of U.S. legal sports betting, but none of the three is a slam dunk to legalize the activity. Weeks before Election Day, Proposition 27, a referendum that aims to legalize online sports wagering in California, trails in several closely watched polls.

With the calendar turned to October, a host of gaming stocks surged Tuesday in line with a broader market rally. Caesars jumped more than 13% to a session high of $37.57 a share, while MGM rose about 7% to $32.92. A slew of data released Tuesday reinforced views that an economic slowdown could compel the Fed to raise interest rates at a slower pace than anticipated. When a central bank lifts rates at a slower pace than previous forecasts, it’s generally viewed as a bullish move for stocks.

DraftKings (DKNG)

Opening price on Sept. 1: $15.78

Closing price on Sept. 30: $15.14

Monthly percent gained or lost: (-4.1%)

Year-to-date change: (-45.6%)

Market cap: $7.29 billion (as of Oct. 4)

Flutter EntertainmentΒ (FLTR.L)

Opening price on Sept. 1: Β£10,685 pence

Closing price on Sept. 30: Β£9,938 pence

Monthly percent gained or lost: (-6.9%)

Year-to-date change: (-15.4%)

Market cap: $19.3 billion (as of Oct. 4)

MGM Resorts (MGM)

Opening price on Sept. 1: $32.09

Closing price on Sept. 30: $29.72

Monthly percent gained or lost: (-7.4%)

Year-to-date change: (-34%)

Market cap: $12.4 billion (as of Oct. 4)

Other stock movement

Among sports betting data providers, Genius Sports ended September at $3.67 a share, down 8.9%. Genius shares are down considerably from their 52-week high of $19.85 last October. Sportradar, Genius’ main rival, closed the month at $8.80 a share, down nearly 20%.

In a recent note, Kelley downgraded Sportradar on the company’s exposure to international markets. With more international exposure than any company in BofA’s gaming coverage, macro uncertainty in Europe could pressure Sportradar’s margins, according to Kelley.

“While we still admire key pieces of their business models, low visibility and a myriad of macroeconomic headwinds create risks,” Kelley wrote in the October research note.

Facing headwinds and crises on all sides, the European Central Bank began a super aggressive phase of monetary policy lat week, with the largest hike in the institution's 24-year history. The jumbo-sized 0.75 percentage point increase is the beginning of more to come… pic.twitter.com/GUCFkViY3B

— CB3 LIVE! (@CB3_LIVE) September 21, 2022

Elsewhere, the Association of Gaming Equipment Manufacturers (AGEM) index ended September at 739.77, down 29.3% from the same month a year ago. On a monthly basis, the AGEM index fell about 11% from August. The index contains about a dozen components, most notably Light & Wonder, IGT, and Everi Holdings Inc.

TheΒ Roundhill Sports Betting & iGaming ETF (BETZ), an exchange-traded fund (ETF) that tracks the top sports betting and iGaming stocks in the industry, closed September at $13.05, down 11.9% on the month. At one point in September, the ETF eclipsed $15.80.

BETZ is still far below levels from a record high of $32.65 in April 2021. At that point, the ETF more than doubled its level from its June 2020 debut. As of Tuesday, DraftKings, Flutter, and Genius Sports ranked as the top three holdings in the portfolio, as each stock represented upward of 5% of the overall basket. DraftKings is the top holding with a portfolio weighting of around 6.7%.

ShareTweetShare
Matt Rybaltowski

Matt Rybaltowski

Matt is a veteran writer with a specific focus on the emerging sports gambling market. During Matt's two decade career in journalism, he has written for the New York Times, Forbes, The Guardian, Reuters and CBSSports.com among others. In his spare time, Matt is an avid reader, a weekend tennis player and a frequent embarrassment to the sport of running. Contact Matt at [email protected].

This site contains commercial content. We may be compensated for the links provided on this page. The content on this page is for informational purposes only.

Related Posts

deion sanders mirrored glasses
Industry

It’s ‘Prime Time’ Again As Sanders’ Colorado Football Team Piques Bettors’ Interest

September 29, 2023
draftkings-sportsbook-outfield-sign
Industry

DraftKings Moves Closer To Opening Retail Sportsbook In Maryland

September 28, 2023
Load More

Top Stories

guitar-hotel-hard-rock-florida

Court Decision Clears Way For Hard Rock Bet To Launch In Florida … But Will It?

September 28, 2023
system error

Schuetz: Palpable Errors In Sports Betting, And The Palpably Bad Decisions That Follow

September 25, 2023
taylor swift donna kelce

Will Taylor Swift-Travis Kelce Relationship Make Sports Bettors Out Of More Women?

September 28, 2023
have-a-game-plan-bet-responsibly-screenshot

Bettors Know All About Responsible Gambling, But Most Don’t Use Tools

September 12, 2023

State Sports Betting Guides

Sports Betting in Kentucky

Kentucky Sports Betting – Welcome Offers & Best Legal Sportsbook Apps for 2023

by Dukes Wooters
September 28, 2023

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – All Online Sportsbooks, Bonus Offers, and News 2023

by Brian Pempus
September 29, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
September 6, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
September 1, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
September 6, 2023

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps 2023

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Lottery
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright Β© 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Colorado
    • Illinois
    • Indiana
    • Kentucky
    • Louisiana
    • Maryland
    • Massachusetts
    • Michigan
    • New Jersey
    • New York
    • North Carolina
    • Ohio
    • Pennsylvania
    • Tennessee
    • Virginia
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel Sportsbook Promo Code
    • BetMGM Bonus Code
    • Bet365 Bonus Code
    • Caesars Sportsbook Promo Code
    • ESPN BET Promo Code
    • Fanatics Sportsbook Promo Code
    • BetRivers Promo Code
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News