Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, sports-betting companies have seen huge interest.
As of the end of June 2022, 30 states plus Washington, D.C. now offer at least some form of legalized sports wagering, according to the latest tally from the American Gaming Association.
In the four years since legalization, Americans have wagered over $125 billion on sports as betting transformed from a taboo topic on sports television to commentators openly discussing gambling odds before and during games.
Several sports-betting operators are also publicly traded companies, and some include non-sports betting assets in their business portfolios, such as casinos or entertainment properties.
Here is how those sports-betting stocks performed in June:
The state of California confirmed on June 27 that a sports betting measure would be on the November ballot in the state. The measure, which is supported by DraftKings, FanDuel and several other operators and will be voted on by Californians, would legalize online sports betting in the most populous state in the country.
The proposal would stipulate 85% of the tax revenue from sports betting in the state would go to homelessness and mental health, something leaders including DraftKings CEO Jason Robins has pushed for.
On June 28, JMP analyst Jordan Bender said he believes DraftKings will move higher than the overall market in the near future after he issued a Market Outperform Rating to the sports betting giant.
“For DKNG, iGaming is the obvious cross-sell,” Bender said, touting the company’s iGaming products like Spanish 21 and blackjack.
DraftKings is down 77.47% over the past 12 months.
Shares of Caesars Entertainment Inc. CZR, -2.78% plummeted 26.16% in June.
Caesars is one of several approved sports betting operators in New York state, which in recent months has become the top state in terms of total sports betting, according to data compiled by LegalSportsReport.
“In less than half a year, New York has become a leader among states in implementing successful gaming policies, with hundreds of millions of dollars going to important programs that will improve the lives of all New Yorkers,” New York Gov. Kathy Hochul said in a statement. “I am committed to upholding responsible and effective gaming policies that will move the industry forward and continue to drive our state’s economic growth.”
Caesars was one of the top sports books in New York after the state legalized mobile wagering in January 2022.
Caesars Entertainment’s price target was cut to $128 from $149 at B. Riley on June 28.
Caesars stock is down 62.78% over the past 12 months.
Shares of Penn National Gaming Inc. PENN, -2.19% dropped 9.68% in June.
Like he did with DraftKings, JMP analyst Jordan Bender touted the future prospects of Penn National in a June research note.
Bender is a fan of Penn National’s acquired assets like Barstool Sports and theScore, and says he believes they can help lower the company’s customer acquisition costs.
Penn’s stock dropped 60.17% over the past 12 months.
Other sports betting news
Michael Rubin, CEO of apparel giant Fanatics, sold his ownership stake in several professional sports franchises including the Philadelphia 76ers due to conflicts with the other businesses.
“With the launch of our trading cards and collectibles business earlier this year — which will have individual contracts with thousands of athletes globally — and a soon-to-launch sports betting operation, these new businesses will directly conflict with the ownership rules of sports leagues,” Rubin said in a statement posted on Twitter TWTR, -1.49%.
The Roundhill Sports Betting & iGaming ETF BETZ, -4.09%, a tier-weighted index of global sports betting & iGaming companies, fell 15.68% in June and is down 52.69% over the past 12 months.