The start of the NFL season last year meant sports betting stocks skyrocketed.
Shortly after that boom, the values of the top sportsbook’s stocks began to plummet.
Betting on a short-term boom based on past history may be the best investment.
NEW YORK – The NFL season starts in less than one month which is great news for NFL bettors and stockholders of legal sports betting sites.
How Online Sportsbook Stocks Have Fared During NFL Season
When comparing some of the biggest names within the legal sports betting industry such as DraftKings(DKNG), Flutter Entertainment(the owners of FanDuel, PDYPY), and MGM Resorts International(owners of BetMGM, MGM) it became clear that hope springs eternal around football for their investors and NFL bettors once the calendar turns to September and the season begins.
Stock Prices Of Sportsbooks During The 2021-22 Season
The average of the percent change for all three sports betting companies was above 0% twice during the 2021 NFL Season. September saw the stock prices of each sports betting site soar.
BetMGM’s stock price saw the least improvement, but their stock price still rose 6.23%, or $2.48. The average growth of each of their stock prices from August 2nd of 2021 and September 6th, 2021 was 13.49%.
The only other month with a positive average growth percentage amongst the sportsbooks was from December 6th, 2021 to January 3rd, 2022, when the companies went up an average of 0.5%.
Betting Against The Sportsbooks This Season
DraftKings($20.78) and Flutter Entertainment($64.72) both start this season with lower stock prices than last season. BetMGM is nearly two dollars higher, with MGM’s stock price sitting at $41.92.
The fact that BetMGM is doing better than they were at the start of last season may be a minor miracle to investors, as they, and the other sportsbooks, closed out the 2021 season on a terrible note.
The last month of the season saw the price of each sportsbook stock to drop at least 5%, with DraftKings and Flutter Entertainment crashing by 17.78% or more.
For sportsbook investors, it may be best to place a call option or another short-term play on the books instead of buying in long term, as the overall value within the industry tanked throughout football season after an initial boom.
News tags: BetMGM | DraftKings | FanDuel
Brett is a passionate sports writer who majored in Sport Management at Florida State University. He combines his knowledge of stats with his understanding of game theory to find the best values when sports betting. Brett enjoys golfing, playing cornhole, and hanging out by the pool when he’s not locked in watching games.