Digital sports entertainment and gaming company DraftKings (NASDAQ:DKNG) has been benefiting immensely from the widened legalization of sports gambling across the U.S. As a result, its shares have returned 144.3% over the past year. However, the stock has declined 10.3% over the past month. While this weakness can be attributed mostly to a lack of clarity on how mobile sports betting will shape up in the country, investors are also concerned about expected weakness in its first quarter report that has been predicted by analysts. The report is scheduled to be released tomorrow. Read on to learn whether DKNG is a good bet now or if it is susceptible to further decline.The COVID-19 pandemic triggered a rally in gambling stocks as stay-at-home mandates positioned some time on this kind of entertainment. Furthermore, the legalization of digital sports betting is an emerging trend in the United States.
Boston-based online sports platform, DraftKings Inc. (DKNG), which allows users to play daily fantasy games and win cash prizes, is taking advantage of the changing shift in attitude toward legalizing sports betting by many states.
DKNG stock has gained as much as 233% over the past year. However, its shares have been stumbling lately and have lost 10.3% over the past month. This is primarily due to the rising investor concerns over evolving gambling and license granting laws in some states.