Baseball is back with the first official games of the MLB season taking place last night and today. Next week, the NBA is also set to resume its season on Thursday. With the return of the biggest sports leagues, sports betting is also back. As shown in the chart below, Google searches for “sports betting” have surged the past couple of weeks. In fact, it has reached the highest level since New Jersey legalized sports betting in 2018. While that one time spike is likely to subside eventually, it is showing a massive interest/pent up demand for sports betting. Additionally, one factor to note of the data is it is highly seasonal with spikes each year in early September which coincides with the start of the NFL season. Time will tell if COVID shutdowns carry through to the NFL season, disrupting that usual pattern.
While many gambling-related stocks remain beaten down, one stock that is likely to benefit from this surge in interest is online sportsbook DraftKings (DKNG). The stock hit the market just about a year ago and it has truly taken off in 2020. As shown below, at its highs a few months ago, DKNG was up more than 300% YTD. While currently off those highs, it has been gaining steam again in the second half of July. Click here to view Bespoke’s premium membership options for our best research available.