DraftKings shares drop after MLB postpones games just days after season

Postponements, which are coming Just a few days after the long season, highlight the enormous challenges facing the world of sports and the gaming industry that depends on it. As a sports and fantasy online gambling company, DraftKings’ short-term success is inextricably linked to the fate of this experiment.

That was made clear in the MLB announcement Monday and the drop in shares as a result. Games scheduled for Monday night between the Baltimore Orioles and Miami Marlins, as well as the New York Yankees and Philadelphia Phillies, were postponed due to coronavirus infections among players and staff.

DraftKings (DKNG), which was made public in April through a “blank check” company, was an instant hit on Wall Street despite the current sports vacuum.

And even after Monday’s crash, DraftKings’ stock price has soared more than 200% on the year, giving the company a valuation of more than $ 13 billion.

In a statement, DraftKings praised sports leagues for “taking this process seriously and making decisions based on what’s best for the health of their teams.”

“While our short-term business depends in part on the sports calendar,” said a spokesperson for DraftKings, “we have always said that we are playing a long game and will continue to focus on driving a technology-first approach to product innovation in order to to keep sports fans engaged. “

The pandemic has forced DraftKings to rely on alternatives. For example, DraftKings allowed people to gamble on Russian table tennis and even conducted Madden NFL video game simulations.

Investors had bet the return of professional baseball and the NBA later this week would be a boost for DraftKings and the gaming industry.