- Many sports leagues around the world have suspended play or canceled major tournaments.
- Sports cancelations have led to sports betting stocks to take a hit.
- Industry heads are preparing to take hits due to the coronavirus for the next few months.
NEW YORK – Sports betting stocks all over the world have gone down over the weekend due to the outbreak of COVID-19 (coronavirus).
The outbreak of the coronavirus has swept the entire globe and had many unforeseen consequences. To prevent the spread of the disease, many different sports leagues have suspended play and major tournaments are delayed or canceled. Tournaments such as The Players Championship are no longer happening as planned.
This does not only affect the sports leagues who had to cancel their events. For companies such as William Hill and Flutter Entertainment, stocks and profits are at risk of being at an all-time low.
A Stock Market Hit
Legal sports betting stocks are already seeing the consequences of the coronavirus happening. Flutter Entertainment is the parent company of Betfair. Due to the increasing number of sports leagues suspending play, there is much less reason to bet on sports. A side effect of a lack of sports betting is a decrease in stock value for the company.
Flutter Entertainment’s stocks have decreased by 1,000 points since the leagues have suspended play. A major hit for the company. William Hill is also facing similar issues. The value of William Hill stocks has decreased by 30% in the last week.
Not all sports betting events have been canceled. Horse races around the world are still happening, without any audiences. Some Australian sports are still currently active as well. However, major events such as March Madness are canceled. The more major events are canceled, the more hits sports betting stocks will take.
Sports betting stocks losing value is likely not a temporary issue. Flutter Entertainment is preparing to take hits until the end of August this year. That is due to the fact that more events are likely going to be canceled throughout the year.
The spread of the coronavirus is causing plenty of issues throughout the sports betting world. Experts believe that the worst is yet to come, and responsible league owners do not want to contribute to the spread of the virus. That will cause further delays and cancellations, thus creating fewer betting opportunities.
Sports betting stocks will likely continue to decrease throughout the majority of the year.
Daniel is a writer that enjoys writing to inform readers. When Daniel was writing for The Borgen Project, he liked informing the world about victories in global poverty issues. Daniel is also an avid horse racing fan who has been going to the track with his father for over a decade betting the ponies. When he is not writing about sports betting or at the track, Daniel loves playing video games and watching sports in his spare time.