DraftKings Inc. shares plunged Monday after two baseball games were canceled due to surge in COVID-19 cases in the Miami Marlins clubhouse.
Shares of the Boston-based sports-gambling platform fell by as much as 14 percent after the Miami Marlins and Philadelphia Phillies postponed their respective games scheduled for Monday as at least 13 members of the Marlins organization have tested positive for the virus over the last few days. The Phillies hosted the Marlins for their season-opening three-game series that began on Friday.
The outbreak has the potential to throw the remainder of the 60-game season, which kicked off last week, into disarray and also raises concerns about the start of other sports leagues.
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The cancellation of any sporting event is a direct blow to Draftkings’ revenue as the company allows users to make wagers on single contests in addition to daily fantasy lineups and futures bets.
Health and safety should “always be the first priority,” a DraftKings spokesperson told FOX Business, adding that while its business partially depends on the sports calendar the company remains committed to “a technology first approach to product innovation in order to keep sports fans engaged.”
“While our business in the short term is partially dependent on the sports calendar, we have always said we are playing the long game and will continue our focus on driving a technology first approach to product innovation in order to keep sports fans engaged”
The logistics for baseball games during COVID-19 are different from that of other sports. Baseball teams are traveling from city to city like they normally do, playing in the opposing team’s home stadium.
However, MLB’s coronavirus problems may not belong to the NBA and NHL, whose COVID-19 plans may provide players more protection from the virus.
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The NBA, which is set to resume on July 30, has confined its players to a bubble, or isolation zone, to protect them from the virus. The NHL, which is scheduled to begin two days later, has restricted players to two hub cities where all of the games will be played.
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DraftKings shares have gained 136 percent since the company went public through a blank-check initial public offering on April 23.
View more information: https://www.foxbusiness.com/markets/draftkings-stock-price-coronavirus-miami-marlins-postponement-2-mlb-games