After the announcement of the suspension of global sports due to the pandemic, many people thought that it would lead to a lousy year for online sports gambling firms. However, the rapid legalization of sports betting in the US led to the proliferation of businesses involved in fantasy sports, sports wagering, and online gambling.
Despite the lack of sporting events, online sports gambling companies improve their revenues. For instance, DraftKings was business making deals during the pandemic. It completed mergers with SBTech and Diamond Eagle Acquisition Corporation.
As a result, DraftKings began trading on NASDAQ in April. On its first day of trading, its share closed at $19.35. It peaked at $44.79 per share. On July 10, it was at $32.43. In June, the company announced that it would sell 33 million more shares to the stock market.
Online Sports Gambling Firms Flourish
Aside from DraftKings, other sports gambling firms are thriving, such as GAN Limited. The business-to-business supplier provides online gaming software to land-based casinos in the US. Some of its clients include Borgata, Maryland Live!, Jack Entertainment, and Parx Casino, according to bookie pay per head sources.
GAN had its IPO during the coronavirus pandemic. It opened at $8.50 per share on the NASDAQ in May. Since then, its value increased to $25.69 per share on July 10, according to DiscountPayPerHead.com.
Golden Nugget is the second online casino company that’s publicly traded. Its shares went up 14 percent after its first day of trading on July 9. Sports betting companies are making a killing in the market because many individuals want to open a sportsbook.
ROAR Digital, a joint venture between GVC Holdings and MGM Resorts International, announced that the two companies would invest more funds into the enterprise. The funds will bring the initial investment from $200 million to $450 million. Their BetMGM platform will operate in 11 states by the end of 2020.