DraftKings, FanDuel Parent Off as Titans, Vikings Suspend Activity - TheStreet

DraftKings, FanDuel Parent Off as Titans, Vikings Suspend Activity

Sports-gambling stocks are lower after the NFL's Tennessee Titans and Minnesota Vikings suspended in-person team activities due to covid.
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Sports gambling related stocks slipped Tuesday after the Tennessee Titans and Minnesota Vikings suspended all in-person team activities.

That move came after three Tennessee players and five team staffers tested positive for the coronavirus. Minnesota played Tennessee on Sunday.

Football accounts for a meaningful chunk of U.S. sports gambling activity. But people who are selling the gambling stocks today may be vastly jumping the gun, analysts say. No games have been canceled and the NFL will likely be reluctant to take that step.

Of course, the coronavirus spreads in a hurry, and if enough people are infected, the league will have no choice but to cancel games.

In addition, sports gambling stocks have soared this year, so any bad news can hit hard.

Sports-gambling platform DraftKings  (DKNG) - Get Report recently traded at $56.10, down 1.4%. On the other hand, the stock has quintupled year to date.

Flutter Entertainment PDYPY, owner of sports gambling platform FanDuel, traded at $80.38, down 0.3%, but has gained 29% year to date. 

Casino titan Penn National Gaming  (PENN) - Get Report, which has a big sports business, slumped 4.8% to $69.41 but has well more than doubled year to date.

In other sports-gambling news, Caesars Entertainment  (CZR) - Get Report said Monday that it’s nearing a deal for a $3.7 billion purchase of U.K. sports-gambling firm William Hill WIMHY.

Private equity firm Apollo also has approached William Hill to discuss a deal, but discussions are still at an early stage, sources told Bloomberg. That could mean a bidding war. Caesars has a leg up in that it and William Hill have a joint venture.