Why DraftKings Stock Was a Losing Bet Today
For any sports team at any level, the recognition of looming defeat is a bitter feeling that can be tough to face. So it was with DraftKings (NASDAQ: DKNG) on Tuesday. The online sports-wagering company's share price slid by over 4% on its leader's acknowledgement of a big potential loss.
In an interview with Bloomberg published this morning, DraftKings CEO Jason Robins essentially admitted that one of the two propositions to legalize online sports betting will fail. He was referring to California's Proposition 27, which if passed by voters would flip the switch on online and mobile sports betting for companies partnering with a Native American tribe in the business.
This is not the only such measure being put to a vote this Election Day. Californians will also consider Proposition 26, which would legalize such wagering, but only in person at retail locations.
Source Fool.com
