Shares of DraftKings (DKNG) - Get Report, an online sport gambling stalwart, fell sharply after two Major League Baseball games scheduled for Monday night reportedly were postponed because of a coronavirus outbreak on the Miami Marlins.
The Marlins were due to play their home opener against the Baltimore Orioles, and the Philadelphia Phillies were scheduled to host the New York Yankees. The second cancellation stems from the Marlins having completed a series in Philadelphia over the weekend.
A total of 14 Marlins players and coaches have caught Covid-19, sources told ESPN. The Marlins stayed in Philadelphia to get tested.
The Marlins testing positive in Philadelphia include pitcher Jose Urena, who was scheduled to start Sunday, ESPN sources said.
Before the Marlins' season opening series in Philadelphia, Atlanta hosted them in an exhibition game. So it’s possible Braves players got infected too.
Unlike the NBA, the MLB teams are traveling to opponents’ home stadiums, and this has raised concern about coronavirus outbreaks.
As for DraftKings, in June, Jefferies analyst David Katz initiated coverage of the online sports-betting site with a buy rating.
Online sports betting is in the initial stage of a "decade-long acceleration," he wrote in a commentary.
"We expect that post-covid, the engagement with digital leisure, the pent-up appetite for sports and political realities should position DraftKings to accel," Katz said. "What’s more, our proprietary survey supports the view that sports betting is a highly social endeavor more so under current circumstances."
DraftKings shares recently traded at $34.75, down 7.43%. The stock has soared nearly 220% year to date.