Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

DraftKings Bull Sees Shift to Online Gambling Amid Pandemic

April 24, 2020, 12:33 PM

DraftKings’s price target was raised to $25 from $20 at Craig-Hallum Capital Group, which expects a surge in interest for online sports gambling when games resume after the pandemic.

  • The move reflects higher confidence in the sports-betting company, which will begin trading on Friday after completing a reverse merger with Diamond Eagle Acquisition Corp.
    • NOTE: Earlier, DraftKings Defies Odds to Go Public During Freeze on Sports
  • Analyst Ryan Sigdahl wrote that suspended sport seasons “will result in a larger and more engaged audience when play resumes,” while social-distancing measures “will cause an accelerated shift online for sports betting and casino gaming”
  • There may be “accelerated legalization of online gambling” from states that don’t have traditional casino tax revenue
  • Buy rating, DKNG is “a great way to invest in the massive proliferation of legal online gaming”

To contact the reporter on this story:
Ryan Vlastelica in New York at rvlastelica1@bloomberg.net

To contact the editors responsible for this story:
Catherine Larkin at clarkin4@bloomberg.net

Steven Fromm

© 2020 Bloomberg L.P. All rights reserved. Used with permission.