Penn National, DraftKings Rise on Bullish Sports-Betting Indicators

Texas could be adopting sports betting, according to a note from Craig-Hallum analysts. Some gambling stocks are higher.
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Sports-betting stocks got a boost on Tuesday following reports that the Texas governor's office reached out to states that have legalized sports betting, like New Jersey, for advice on the issue. 

Craig-Hallum analyst Ryan Sigdahl wrote that the update is notable because Texas has "long been opposed to gambling." Additionally, bills out of Oregon and Kentucky are also signs that the sports-gambling footprint in the U.S. could be expanding. 

Last week, New York Gov. Andrew Cuomo proposed to enable online sports betting. 

Shares of Penn National Gaming  (PENN) - Get Report at last check rose 3.3% to $103.69. Shares of DraftKings  (DKNG) - Get Report traded up as much as 3.7% on Tuesday. They recently were little changed.

On Monday Penn National topped $100 a share for the first time. 

Also on Tuesday, shares of sports-streaming network fuboTV also rose after the company said it agreed to acquire sports-betting company Vigtory with plans to launch a sportsbook this summer.

Terms weren't disclosed. FuboTV expects to close the deal in the first quarter, subject to conditions it didn't specify.

At last check fuboTV shares were 16% higher at $31.47.

"We believe online sports wagering is a highly complementary business to our sports-first live-TV-streaming platform," David Gandler, fuboTV's co-founder and CEO, said in a statement. 

FuboTV plans to launch a free-to-play gaming experience this summer through its December 2020 acquisition of Balto Sports and its content automation software.

Free-to-play gaming will be available to all customers, not just fuboTV subscribers. And the service will enable consumers to see current betting lines, place wagers and cash in their winnings, among other features.