DraftKings News: Why DKNG Stock Is Taking an 8% Hit Today

DraftKings (NASDAQ:DKNG) news for Monday concerning the postponing of two MLB games has DNKG stock falling.

DraftKings (DKNG) logo on a phone

Source: Lori Butcher / Shutterstock.com

The problem for DraftKings comes after four members of the Miami Marlins tested positive for the novel coronavirus. Even knowing this, the team played against the Philadelphia Phillies on Sunday. As a result, the Marlins’ next game has been postponed, as has the Philadelphia Phillies’ game against the New York Yankees.

So what exactly does this mean for DraftKings? The fantasy sports website makes its money off of betting on sporting events. Many of these such events have been cancelled or delayed during the coronavirus pandemic.

The MLB was a ray of hope for DraftKings that sports betting would return to normal alongside games. That’s due to the MLB’s schedule being largely unaffected by the outbreak. Unfortunately for DKNG stock, these two delays show that isn’t the case, reports Markets Insider.

While the delay of two games is nothing to sneeze at, it could be a sign of further trouble for DraftKings. If more cases of the coronavirus pop up among professional players, the MLB may have to postpone or cancel even more games. That’s something the fantasy sports website doesn’t want to see.

Derek Jeter, CEO of the Marlins, gave the following statement to the Associated Press.

“Postponing tonight’s home opener was the correct decision to ensure we take a collective pause and try to properly grasp the totality of this situation.”

DKNG stock was down 7.5% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/07/draftkings-mlb-news-hits-dkng-stock/.

©2021 InvestorPlace Media, LLC