Sports and Business News: July 10th
BetMGM is coming for the Throne
As more states in the US continue to legalize sports gambling the battle for the top bookmaker is heating up. GVC Holdings, one of the largest sports betting and gaming groups in the world, has a partnership with BetMGM, announced $250 million in new funding bringing their total investment to $450 million according to Legal Sports Report. BetMGM is in a heated race against FanDuel and DraftKings as the top destination for mobile and online sports gambling.
According to the report, GVC Chief Executive Kenny Alexander said, “other people have the ammunition to really go and grab market share, and we’ve put this investment in as a sign the kid gloves are coming off. Our aspiration to be the market leader is very real.”
Draftkings shares are down more than 2%, while discretionary businesses are seeing their stocks rally Friday. This looks like a direct hit to investor sentiment and potentially market share for DraftKings. MGM Resorts was largely flat, trailing consumer discretionary, curiously.
UFC 251: First Ever From Fight Island
Fight fans are getting ready for UFC 251 which features Karmaru Usman and Jorge Masvidal in the main event and Alexander Volkanovski and Max Holloway in the co-main. Sports Illustrated Swimsuit model Paige VanZant makes her return to the octagon for the first time in 17 months as she battles Amanda Ribas. UFC 251 starts Saturday Night, July 11th from the UFC Fight Island in Abu Dhabi.
For the best bets and which fighters to put on your DFS lineup, check out the great advice from Sports Illustrated's gambling team.
The purpose of fight island is for international athletes who can’t compete in the United States due to travel restrictions during the coronavirus. UFC President Dana White shared a first look at the testing and infrastructure on Fight Island via his twitter which included 2004 completed coronavirus tests, three medical facilities, and 400,000 hours to build. Fight fans can watch UFC 251 on ESPN Plus.
Daily Business Update: 7/10
Bank stocks were rallying big time on Friday, with the KBWB (bank etf) up 3%. Banks report earnings starting this coming week. Now, here’s the story with banks. Many of them are in a bear market — they’re roughly 30% below their June 8 level, which was a post-March 23 high. Many of them are trading at historically cheap valuations. We’re looking at huge loan loss provisions, which is cash set aside to absorb potential loan defaults, an earnings negative. A lot of this is priced into these stocks. They are going to report and the risk-reward scenario isn’t all that bad at this point.
In terms of the virus, new daily cases in the U.S. hit a record high of 63,000, according to Johns Hopkins data, but hey, guess what? Gilled Sciences’ phase 3 vaccine results are very positive. That came out Friday. Gilled is rallying and so are most sectors in the U.S. market because investors this year have been looking at fundamentals in a glass-half-full manner.
TheStreet's Jacob Sonenshine contributed to this report.