Who hasn’t been hurt by the pandemic yet: shares of bookmakers have grown due to e-sports

2 min

The coronavirus pandemic has affected a wide range of industries. Airlines, travel startups – were among the first victims, but they were not limited to them. For example, in the period of strict quarantine, when mass events were banned, the bookmakers were also seriously affected. Shares of large companies are traded on the stock exchange, and many expected their fall.

However, the e-sports industry has supported interest in betting. As a result of the action of the largest bookmakers even have grown.

What happened

Due to the fact that mass events were banned during quarantine, sports championships also stopped in most countries. This should have negatively affected the business of bookmakers, but in reality their shares showed a good result. In particular, the paper prices of the betting platform DraftKings and the gaming operator Penn National were growing.

After entering the IPO on April 24, DraftKings shares rose 82%, while Penn National Gaming shares rose 130% by the end of May.

What is the reason for the growth

Interest in the services of bookmakers did not fade even during the stoppage of the largest sports championships. Esports tournaments can be held completely online, and people are pretty active in betting on their results.

This was facilitated by, among other things, general isolation. Once locked up at home, people actively used streaming services, played games, and made bets on them, which came as a surprise to some analysts.

What does all this mean?

In June, sporting championships resumed in many countries. However, for example, in the US, major leagues like the NHL hockey are still paused. Therefore, fans still have nothing to watch, which contributes to the growing popularity of eSports.

Analysts expect that even after the sports industry is fully restored, eSports will retain its position and will be able to attract new fans.

DraftKings shares are traded on the Nasdaq American Exchange. It is possible to buy shares of American companies from Russia without opening a separate brokerage account with foreign brokers. Through St. Petersburg Exchange Foreign Securities Market investors can buy 500 liquid shares of leading companies in all sectors of the global economy, including all shares of the S&P 500 index.

To make transactions with such shares, you need a brokerage account – open it can online.

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