Since the world of sports was put on hold due to the spread of Covid-19 and the attempt to slow its spread, many market participants have noted the rise in 'retail' investors. But, many have claimed that these 'retail' investors aren't just your average mom and pop investor, the young high school or college kid who wants to make a little money while stuck at home, (although we have seen a slight uptick from these age groups and demographics participating in the stock market over the past few months.) Some believe the largest new group of investors with the most impact on the markets in recent weeks are the ex-sports gamblers, especially those gamblers that prefer online sports gambling.
I say "ex"-sports gamblers because besides just recently when PGA Tour Golf and NASCAR began competing again, sports gamblers have not been able to bet on anything when all sports activities were shut down due to Covid-19. So, it is not to say that once professional major league sports begin to operate once again in the US, these sports gamblers won't go back to their old ways of betting on games and not stocks.
However, their 'old' ways of gambling may be changing in a big way in the near term. The online fantasy sports gambling website, DraftKing (DKNG), recently went public and was already operating an online sportsbook and casino before the countrywide shutdown. Furthermore, DraftKings competitor FanDuel, owned by Flutter Entertainment (FLTR), had also already begun to operate online sports gambling websites and apps in states that have legalized sports betting before the Covid-19 shutdowns and stoppage of professional sports. Even MGM Resorts (MGM) has begun partnering with companies to build online sportsbooks and casinos in states those activities are legal.
Some believe that due to the Covid-19 shutdowns, State and local governments who currently don't allow sports betting or online sports gambling will pass laws to allow these activities in the near term as governments try to find new forms of tax revenue. So, while not only is it possible that sports gamblers are now gambling on stocks, but they may be able to legally gamble on sports, regardless of where they live, soon. Continue reading "New Sports Betting ETF Hits the Market"