DraftKings (DKNG) and Caesars Entertainment (CZR) will be among the first to launch mobile sports betting in New York on Saturday. DraftKings stock and CZR stock popped.
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The New York State Gaming Commission has given the green light to Caesars Sportsbook, DraftKings, FanDuel and Rush Street Interactive to begin accepting mobile sports wagers at 9 a.m. ET on Saturday.
“We are excited to finally be able to offer millions of passionate New York sports fans the top rated DraftKings mobile and online Sportsbook,” said DraftKings CEO Jason Robins in a statement.
On April 7, New York state passed a budget with a bill to legalize online sports betting. In November 2021, New York’s gambling authority approved online sports betting licenses for nine operators.
At the time, Caesars CEO Tom Reeg said in a statement: “We’ve been looking forward to the opportunity to bring mobile sports betting to New York. With more than 19 million people, New York will be the biggest mobile sports betting market in the country, and we feel we are uniquely positioned to bring an incredible product to that market.”
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The other five companies, which are Bally’s (BALY), MGM Resorts‘ (MGM) BetMGM, Wynn Resorts‘ (WYNN) Interactive, Resorts World and PointsBet, are conditionally licensed pending final approval. Penn National Gaming‘s (PENN) Barstool Sports did not make the cut.
The online gambling market is expected to hit $127.3 billion by 2027, according to Grand View Research. After the Supreme Court ruled in 2018 to overturn a federal ban on sports betting, 32 states now allow sports betting in the U.S., but only 18 have legalized online wagering.
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New York is one of the Big Four states that could really move the needle for gambling stocks. The other three are Michigan, which already allows online sports wagering, Florida and California.
Industry experts say New York’s online sports betting market could reach $1 billion in annual revenue. The state expects to rake in around $500 million in annual tax revenue from online sports betting by the start of 2025.
Caesars Stock, DraftKings Stock
Casino stocks have suffered in recent months as Covid variants have slowed the reopening process. Many Las Vegas-based conventions, which were slated to return in the fall, have been canceled.
Caesars stock jumped a mush as 4% on the stock market today, before closing up 3.5% at 89.66. Its relative strength line ticked upward. However, CZR stock is still below a slumping 50-day line, according to MarketSmith chart analysis. Its RS Rating is just 26 out of a best-possible 99, while its EPS Rating is 56.
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DraftKings stock jumped 5.6% to around 27.24. DKNG stock is also trading below a declining 50-day line. Its relative strength line moved up with today’s stock action, but is still hovering near all-time lows. DraftKings stock has an RS Rating of 6 and an EPS Rating of 24.
Among other casino stocks, Penn gained 0.9% and MGM added o.5%. Bally’s rallied 3.3%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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Source: https://www.investors.com/news/draftkings-stock-caesars-stock-gain-ahead-of-new-york-online-sports-betting-debut/?src=A00220&yptr=yahoo