top of page

DraftKings Shares Plunge 6.8% as Sports Betting Integrity Issues Arise

DraftKings (DKNG) – ★★★★ – Ranked #5 in Q1 2024 Mid & Small Cap Rankings

DraftKings (DKNG) stock took a tumble on Wednesday, dropping 6.8% to close at $45.35 after reaching a new 52-week high earlier in the trading session. This decline came amid several developments in the sports betting and online gambling landscape.

The NCAA announced its intention to push for a ban on proposition bets, also known as prop bets, in college sports. NCAA President Charlie Baker stated that this move aims to protect student-athletes and maintain the integrity of college sports, citing recent incidents that highlight the need for further action.

This announcement followed reports of investigations into betting irregularities involving professional athletes.

Prop bets are wagers that are not directly tied to the final outcome of a game, such as bets on individual player statistics like points scored, rebounds, yards gained, or touchdowns.

Adding to the concerns surrounding the industry, the Wall Street Journal reported that federal authorities are scrutinizing the VIP programs offered by online gambling companies.

These developments, highlighting potential integrity issues and regulatory scrutiny, likely contributed to the sell-off in DraftKings' stock on Wednesday.

Subscribe for More Insights

Don't miss out on opportunities like this one. Our subscribers receive regular updates, options ideas, and comprehensive analysis to help them navigate the options market effectively. With our plans, you'll gain access to a wealth of knowledge and strategies that can make a real difference in your trading journey.

The information provided in this report is for general informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The opinions expressed in the report are our own and are subject to change without notice. We may have a position in the securities mentioned in the report, and we may buy or sell such securities without notice. Any investment decisions made based on the information in this report are solely the responsibility of the recipient. We do not accept any liability for any direct, indirect, or consequential loss arising from any use of this report or its contents.


bottom of page