The Week In Sports Betting News: Cash Rules Everything Around Me

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Happy Monday, everyone. Continued positive news around leagues returning to action means sports betting should be ramping up starting next month.

Keep up with the biggest sports betting stories by subscribing to the LSR Podcast. Last week’s episode kicked off with one of the biggest stories of the week: the almost-certain death of California‘s sports betting prospects for 2020.

And make sure to follow @LSPReport on Twitter where our coverage doesn’t end at normal office hours. Twitter was where we covered another significant story late Friday night: the end of Georgia‘s sports betting hopes.

Top sports betting news: $DKNG raises big bucks

DraftKings helped position its sports betting business for the future through additional share placements last week.

The company raised nearly $621 million through the sale of 16 million new shares. Existing shareholders, including company executives and significant major league team owners, also sold 30 million total shares.

The shares were sold at $40, which doesn’t hold up well after the stock market tumbled a bit toward the end of the week. DKNG closed at $33.34 Friday, down 22.4% from Monday’s opening price.

End of the road for California sports betting

The likelihood of legalized California sports betting passing this year was never super-high and finally crashed last week.

Indian gaming tribes opposed the bill the entire time, which led Sen. Bill Dodd to finally pull SCA 6 from consideration. The issue cannot be revisited until 2022.

It wasn’t the sports betting aspect that the tribes disliked. The bill also included language that would clarify how cardrooms could offer banked games, something the tribes staunchly disagree with and contend violates existing law.

The fact that the bill was filed without dialogue with the tribes beforehand was also a sore subject.

“It was a bad bill, written without tribal input, with virtually no time remaining on the clock — it got the finish it deserved,” said tribal lobbyist David Quintana. “It started off as a sucker punch but ended up as a knockout. Hopefully, the next round will involve a true dialogue with the tribes.”

Georgia falls flat, too

Two sports betting efforts were revived late in Georgia’s session, but neither got a significant look.

Both initiatives, HB 903 and SR 841, came about through substitutes but reflected bills that never passed earlier in the session.

HB 903 would have legalized online sports betting regulated by the Georgia Lottery. SR 841 was a simple yes/no referendum concerning sports betting, casinos and race tracks.

Portnoy sees Penn National as undervalued

In a surprise to no one, Barstool Sports founder Dave Portnoy thinks a business venture he’s involved with is the best around.

Portnoy told CNBC he expects Penn National to be a dominant player in the sports betting world once the Barstool Sportsbook app launches in the third quarter.

Erika Nardini, Barstool’s CEO, also said the company should have three times the market cap of DraftKings, not the other way around.

The interview seemed to have the wanted effect on Penn’s stock as it jumped 17% Tuesday. The stock suffered like the rest of the market toward the end of the week, however, and closed down 5.9% from Monday’s open.

Online launch for Michigan sports betting gets closer

Michigan sports betting could be launching online faster than originally expected.

The Michigan Gaming Control Board now thinks online sports betting could go live as early as October. That could be pushed up even further with a couple of tweaks to the schedule.

For instance, the Joint Committee on Administrative Rules could waive its 15-day review period and shorten than to two days. But it could also be delayed by various circumstances, including the weekly one-day furlough for government workers.