DraftKings Shares Edge Up as NBA Players to Resume Playoffs

Shares of online sports gambling platform DraftKings were gently higher after the NBA players voted to resume the playoffs.
Author:
Publish date:

DraftKings  (DKNG) - Get Report shares edged higher after reports said the National Basketball Association players voted to resume the league’s playoffs.

The Wednesday suspension of the season came after the Milwaukee Bucks refused to take the court in their scheduled contest against the Orlando Magic. 

The Bucks players were protesting the Aug. 23 police shooting of Jacob Blake, a black man, in Kenosha, Wis.

The Athletic reported that players and the league hope to compete again beginning Friday.

DraftKings shares recently traded at $38.96, edging up 0.3%. They have well more than doubled this year amid investor enthusiasm for online sports gambling. A halt of play, of course, could damp activity for the betting platform.

The NBA was not the only affected league. Multiple sports events were postponed on Wednesday, as athletes protested the Blake shooting. They included Major League Baseball, the Women’s National Basketball Association and Major League Soccer.

A major tennis tournament in New York City decided to suspend action Thursday. Women’s semifinalist Naomi Osaka had initially said she was pulling out of the tournament to protest the Blake shooting, then decided to participate.

This is thought to be the first time that all these sporting contests have been suspended for a social cause.

As for DraftKings, it earlier this month reported a wider-than-expected second-quarter loss, while beating Wall Street's revenue expectations.

DraftKings posted a loss of 55 cents a share, wider than analysts' expectations for a loss of 20 cents. Revenue in the period was $70.9 million, higher than forecasts of $66.4 million.

DraftKings said it ended the second quarter with more than $1.2 billion in cash and no debt on its balance sheet.

Tags
terms:
GamingSports