Tech

DraftKings stock falls after MLB postpones 2 games due to coronavirus outbreak

Key Points
  • Shares of sports-betting provider DraftKings closed down 6.48% Monday after the MLB postponed two upcoming games due to the Covid-19 pandemic.
  • Earlier Monday, Major League Baseball postponed the Miami Marlins game against the Baltimore Orioles and the Philadelphia Phillies' game against the New York Yankees.
  • DraftKings said that MLB was the most popular sport of its sports book this weekend. 
DraftKings CEO and Co-Founder Jason Robins speaks during the unveiling of DraftKings headquarters March 26, 2019 in Boston, Massachusetts.
Darren McCollester | Getty Images

Shares of sports-betting service DraftKings closed down 6.48% Monday after the MLB postponed two upcoming games due to the Covid-19 pandemic.

"The health and safety of the athletes and sports community should always be the first priority and we commend the leagues and teams for taking this process seriously and making decisions based on what's best for the health of their teams," the company said in a statement.

Earlier Monday, Major League Baseball postponed the Miami Marlins game against the Baltimore Orioles and the Philadelphia Phillies' game against the New York Yankees. The decision was made after more than a dozen members of the Miami Marlins tested positive for coronavirus, according to the AP.

DraftKings told CNBC that MLB was the most popular sport in its sportsbook this weekend. And, over the weekend, DraftKings had the second-best day since the March shutdowns began, showing just how important baseball is for the company. DraftKings also lets people bet on the PGA Tour, MLS, the WNBA and NASCAR, among other sports.

Mobile betting is currently only legal in 7 states, however, and last year at this time mobile betting was only legal in New Jersey.

DraftKings expected pent-up sports-betting demand as teams returned to play. In May, CEO Jason Robins said the company had seen interest as people started to watch esports while leagues, including the MLB and NBA, were on pause due to the coronavirus outbreak.

"People are hungry for sports to come back," Robins said in May. But, now that sports are beginning to return in limited capacity, there's concern that they'll be placed on pause again.

Still, DraftKings has fared well during the pandemic. Shares of the company are up 221.31% since the company went public in April.

CLARIFICATION: This article has been updated to clarify that the MLB postponed the Monday game between the Miami Marlins and the Baltimore Orioles and the Philadelphia Phillies' game against the New York Yankees.  

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