The pick is in…Hopefully everyone’s respective team of choice made wise and diligent choices this year during the NFL draft. And if that’s not the case, just remember the only difference between a bad pick and a value pick is time so be patient. That’s enough waiting, let’s get after this week’s 3 And Out and keep her moving.
#1 – Massachusetts passes sports betting bill
At long last, legislators in the Commonwealth of Massachusetts finally came to see reason and voted to legalize sports betting this past Thursday. Specifically, it was the state Senate that passed a new bill but lawmakers will need to iron things out with a previous sports wagering bill passed by the House back over the summer of 2021. The new bill passed by the Senate estimates hauling in nearly $35 million annually in tax revenue by allowing +21 year old residents of the state to wager at brick-and-mortar gambling houses or through mobile apps. The primary issues between the state’s 2 bills surround sports wagering advertising in Massachusetts, banning betting on college teams based in the state, and tax rates. Stay tuned for updates as lawmakers intend to resolve these discrepancies by July 31, when the Massachusetts legislative session ends.
#2 – Cryptocurrency market faces broad sell off over the weekend
Nearly every major cryptocurrency is down double digit percentage points this weekend after a vicious sell off beginning Friday evening. This violent swing lower accentuates an overall risk-off trend that began in late Q4 2021.
All the major blue chips are down, including Bitcoin, which seemed to have found some support at the $38k level, for now. Ethereum broke below the key level of $3,000 late last week and to make matters worse, the Yuga Labs NFL drop for Bored Ape Yacht Club (BAYC) over the weekend created some of the highest gas fees in history and slowed the Ethereum network to a crawl. Many altcoins, including the very promising sports fan social token project Chiliz were down by as much as 25%. Is this a dip buying opportunity or only the beginning of a major drawdown? Share your thoughts on Twitter with us @spreadoption_
#3 – DraftKings To Release Q1 Earnings On Friday, May 6
DraftKings has seen its stock price put through the ringer lately, falling over 50% during the past 6 months. $DKNG will be releasing their earnings figures to investors this Friday and analysts expect to see an EPS of -$1.23. Last time earnings were released back on Feb 18, DKNG posted a beat of -$0.80 EPS vs expectations of -$0.82 but saw EBITDA guidance lowered. DraftKings specifically has faced an uphill battle, largely due to an excessive marketing spend. Diligent readers of course will recall that CEO Jason Robbins has sworn vengenance against any and all short sellers.
If you sold #DKNG today, just be aware that my team and I are on a mission to make you regret that decision more than any other decision you’ve ever made in your life
— Jason Robins (@JasonDRobins) March 9, 2022
As we approach the 2 month anniversary of that infamous tweet, short interest in $DKNG has indeed fallen by about 15% but with the stock below Covid-19 levels, we’re in unchartered waters. Patience must abound for anyone wishing to invest in the market share leader of a potentially burgeoning industry.
That’s all for this week. Follow us @spreadoption_ for more and happy hunting this week.