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With major sporting events still on hold, online gamblers in New Jersey have settled to casino games. This has enabled a 124% rise in May on online gambling revenues in the USA compared to $85.8 million relative to May 2019.
Nevertheless, the rising of online gambling in NJ has also enabled the lifting of DraftKings stock. They are the leaders in online sports gambling, and most gamblers have been flocking their way to the DraftKings betting platform online.
Even though bettors can place their sports making use of DraftKings, New Jersey is one of the few states that allow online casino games for real money. Casino games such as blackjack and roulette are available in NJ online, this is because the gambling market in the state is the largest and most developed.
We view the May result as bullish for the market
Morgan Stanley
He indicated that New Jersey “iGaming” revenues are running at a $1 billion annual rate, above his 2020 estimate of $813 million. Last year’s online gambling revenue in the state totalled $483 million.
We continue to believe the economic impact of Covid-19 coupled with strong recent iGaming results (in both N.J. and Pa.) should spur more states to legalize, though not as much as sports betting
Allen
DraftKings Stock on the Rise
It’s not surprising how DraftKings stock has been rising tremendously. The company is one of the top leaders in the NJ online sports betting. And with lockdowns still taking place, bettors are residing to online betting whilst staying at home.
Some sporting events are likely to resume but still, the practice of social distance is still there. Therefore, most gamblers will be watching their team at the comfort of their homes, at the same time, placing their real money bets.
The DraftKings is projecting online betting market on a completely new level. And as it stands, they are likely to reach $18 billion annually in revenues.
Moreover, DraftKings stock went up to $2, 23 or 6% at $39.11 in trading on Monday. They have seen their shares doubling up the moment they went public through a merger with the diamond company, Diamond Eagle Acquisition.
The company is actually valued at $13 billion making it the highest value USA gambling organisation after Las Vegas Sands.
In addition, the New Jersey reported that the amount of sports bets placed in the month of May was $118 million, a massive low 63% from May 2019. Nevertheless, the decline was better than the 83% drop in April.
Therefore, there are high expectations that June and July will show some good improvement. This is because some sporting events in the world are starting to resume, with English Premier League starting this Wednesday along with the likes of PGA golf events and Formula One racing to resume in July.
Final Thoughts
Above all, DraftKings stock share in online gambling is valued to be around half its share in online sports betting. This market share is at a high teens percentage. The betting company has been dominating in online sports betting and they are now boosting their position in online gambling.